Tim Wilson has retained his “terrible” bet against the Australian share market, an investment that profits when the national economy slumps, even after his appointment as shadow treasurer.
The Liberal MP’s updated register of interests shows he is invested in a leveraged product that makes money when Australia’s benchmark ASX 200 falls.
Meanwhile, the benchmark index is at record highs, surpassing the 9,100-point mark on Wednesday.
Wilson entered the investment product, called the Betashares Australian Equities Strong Bear Complex, very early in the pandemic in 2020.
While the investment initially looked prescient given it was taken out before a pandemic-led market rout, it has gone on to lose about 75% of its value, according to updated analysis.
Sydney-based financial adviser Andy Darroch, from Independent Wealth Advice, said the investment was “not common nor widely held”.
“Generally, you would not seek to hold this style of investment for a long or even medium period. They are very much a speculative tool,” Darroch said.
“With the share market at all-time highs, it’s been a terrible investment.”
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It is an unusual investment for a politician given the product profits from market slumps, which is linked to the performance of the economy.
The product takes a “short” position that profits from a declining Australian share market, and uses gearing to magnify gains, and losses.
It would typically be used as a short-term hedge against an investor’s broader portfolio to protect gains made elsewhere.
Such investments generate no income and can be expensive, and are therefore rarely held for long periods.
Wilson’s register of interest was updated on 15 February, just before his appointment to shadow treasurer by the new opposition leader, Angus Taylor.
Wilson’s office did not respond to questions.
His spokesperson has previously told Guardian Australia: “Mr Wilson bought these shares as a hedge during Covid, but has kept them because of the poor economic policies of the Albanese government.”
Wilson entered parliament about a decade ago and initially held a portfolio of shares that included major banks, miners and healthcare stocks.
The MP went on to sell the various individual stocks and invest instead in funds and index tracking products, reducing potential conflicts.
