The super funds are no different to 99% of the traders and investors that frequent Hot Copper. Most are here to profit from those stocks they invest in. They sell to the highest bidder regardless of who that bidder is. They will buy where they will get the highest return.
There used to be a Commonwealth Development Bank. It was privatised along with the Commonwealth Bank.
Trying to get capital for a new business is a daunting and costly task. We recently tried to raise funds to have capital to source government funds. My first approach was through every broker in Brisbane and the Gold Coast. I got the answers "Talk to us again when you have the product on the market" or " When you raise the first $3,000,000 then come back to us" with the suggestion that we find an "angel investor" to get to that stage. Even with an approach through Angel Investors the best enquiries were from overseas. To seek funds from the general public you must put out a prospectus. In the end the funds raised were not much ahead of the cost of the prospectus (thanks to ASIC).
The best offers so far have come from Korea, Iran, China and Brazil. Even those want to see operating units first.
Even trading shares through a broker, I use both Westpac and Comsec, a large number of my trades are made through Chi-X and not the ASX. I can't stipulate that the shares I sell will only go to an Australian buyer.
Another factor is the cost of production in Australia. We are currently costing our potential product. The best solution will mean parts sourced from Italy, Vietnam and Korea with warehousing and assembly in Singapore. The only Australian component initially will be the electronics with the reasoning being IP control rather than cost.
Generally a sad state of affairs. Who is to blame?. Its easy to pass that to politicians but were are all partly responsible.
The answer can be found in the price of milk. Do you pay a little extra and buy branded milk of do you buy home brand milk. One is $1.10 a litre the other is $1.70.
