The Future Fund returned 3.9 per cent in the March quarter, making for a return of 11.7 per cent over the nine months to 31 March, excluding its Telstra stake.
The latest returns value the portfolio’s assets at $72.99 billion, excluding its Telstra shares, and $74.62 billion including Telstra.
Its Telstra holding returned a surprise 8.2 per cent over the quarter and 0.2 per cent over the nine months. Just over a month ago, the Future Fund said it had reduced its Telstra stake to about 620.4 million shares, or 4.99 per cent, of the telecommunications giant and had ceased to be a substantial shareholder.
The most recent announcement shows it has $1.63 billion in Telstra shares which makes up about 2 per cent of the total portfolio.
The fund’s heaviest allocation remains Australian equities, with $8.48 billion, or 11.6 per cent, followed by developed markets’ equities, at $16.59 billion, or 22.7 per cent of the portfolio, and emerging markets’ stocks at $3.37 billion, or 4.6 per cent.
The remainder of the portfolio is allocated as follows: private equity, 3.4 per cent; property, 6.1 per cent; infrastructure and timberland, 4.8 per cent; debt securities, 19.5 per cent; alternative assets, 16.3 per cent; and $8.03 billion in cash, or 11 per cent of the portfolio.
Cash was lower than the previous quarter when it stood at $10.9 billion, or 15.8 per cent of the portfolio.
The fund’s board of guardians said the level of diversity across the portfolio positioned it for strong returns in positive markets but offered some protection from a downturn.
“Over time it will continue to build towards its target asset allocation, with further investments into private equity, property and infrastructure in particular,” the board said in a statement.
