I dont need to be lectured on AAA investors and the process etc, nor for sovereign wealth funds. I used to be involved in that industry and no full well how these so called quality investors operate. The reality is that it is nowhere near as robust as you suggest. Sure there are some that are quality but in my experience 80-90% are quite average and the return profiles of most funds would seem to support this as the cannot beat the market. Dont forget many of these AAA institutions at the time were participating in US mortgages which lead to the GFC. Remember AIG? Or even the rating agencies themselves who give the AAA ratings were complicite in the whole deception.......my point is that endorsements come and go in the marketplace and even a AAA insto doing months on due diligence on TFC does not know better than us what the oil yields will be........my experience is that institutions no matter what the rating tend to chase returns and in that sense have bought into the high return TFC dream...
Once again I say that I also have bought into the dream so dont get me wrong but it is still just that, a dream....and I dont feel that much more comfort from some esteemed investors being on board.....
Time will tell.
By the way I would be surprised if MIS comes back in Australia ever again...maybe in some other form but the losses and deception have been so great thatit is hard to believe. I suspect also that the laws will change. From now on I think the institutional market will be the way to go...TIMO is taking over the timber world.....and maybe that is who is behind the AAA investor in TFC? I wonder....
TFC Price at posting:
98.7¢ Sentiment: Hold Disclosure: Held
