Tim Wilson sold his “terrible” bet against the Australian stock market and claimed to have profited from the investment the shadow treasurer said he would donate to an LGBT rights group in Iran.
Guardian Australia first reported on the investment, a leveraged product that makes profits when the benchmark ASX 200 index falls, last year. It was considered an unusual investment for a politician given that the product benefits from market declines, which is linked to the performance of the economy.
A Sydney-based financial adviser previously told Guardian Australia the product was “not common or widespread” and had proven to be a “terrible” investment for the Liberal MP.
The Liberal MP still held the investment even after his recent appointment as shadow treasurer, according to his updated register of interests.
Wilson told parliament on Wednesday he had sold the investment, called Betashares Australian Equities Strong Bear Complex, and had submitted a statement that had not yet been published.
“While I made a modest profit on the sale, it has largely been outweighed by the treasurer’s active inflation agenda,” Wilson said.
“I donated it to the International Queer Refugee Railway, which helps people who need to flee their country from regimes like the Islamic regime in Iran.”
It’s not immediately clear how Wilson benefited from the investment, given that it had lost about 75% of its value between the time he bought it in early 2020 and his most recent registration disclosures, made in February.
Wilson’s office was contacted for comment.
The Labor government had recently criticized Wilson for his investments.
The Liberal MP’s office previously declined to disclose the size of the investment, which is typically used as a short-term hedge against market declines.
Wilson told parliament he had initially bought the shares to protect against a “black swan” event related to the Covid pandemic.
In market terms, a “black swan” event refers to a rare and unpredictable event that has a catastrophic impact.
While the market sold off shortly after Wilson exited the investment in early 2020, subsequent disclosures show he held on to it throughout the market’s recovery.
The product takes a “short” position that profits when the market falls and uses gears to magnify gains and losses.
