The Future Fund reports a positive full-year result after making changes to its investment strategy.
On the back of a change in investment strategy, the Future Fund has reported a positive full-year result in its latest portfolio update.
For the period July 1, 2007 to June 30, 2008 the Government fund produced a return of 1.54 per cent, or $652 million.
"The positive result in the current investment environment reflects our decision to slow the purchase of equities in the first half of the year due to concerns about pricing. This allowed us to benefit from a substantial cash component in that portfolio," Future Fund chair of the board of guardians David Murray said.
As at June 30, 2008, 9.2 per cent of the Future Fund portfolio was made up of Australian equities and 19.7 per cent was international equities (both developing and developed markets).
The Future Fund held nearly $35 billion in cash, which was 62.1 per cent of the total holdings of the fund.
The fund has also moved to develop their capabilities in private markets, including property, private equity and infrastructure.
"This is part of our program of building our long-term target portfolio," Murray said.
The Future Fund will be publishing its annual report in late September. It will contain details of the investment program, including strategic asset allocation.
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