The Future Funds has continued to add risk to its portfolio, with developed market equities and private equity both receiving a boost in the past three months.
In its quarterly portfolio update, the Future Fund has revealed it grew to $140.8 billion in the first three months of 2018 (up from $138.9 billion as at 31 December 2017).
The Future Fund has also increased its risk appetite, reducing its cash holding to 14.8 per cent (down from 16.4 per cent at the end of 2017).
Private equity was the main beneficiary (up to 12.8 per cent from 12.1 per cent), largely reflected in a new strategy focussed on Australian venture capital with existing manager Greenspring Associates.
Developed market equities also got a boost, up to 19.5 per cent of the portfolio (compared with 18.6 per cent as at 31 December).
Future Fund chief executive David Neal said the fund has "modestly increased risk" in light of the "positive shorter-term economic outlook".
"The Fund’s overall risk profile sits around the middle of our expected range. This positioning reflects a balance between our perspectives on the near term outlook and the medium to longer-term risks that remain," Mr Neal said.
The Future Fund has returned 7.7 per cent per annum since inception in May 2006, above its target return of 6.8 per cent.
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
Despite the Australian economy’s ongoing rapid recovery, an Australian equity head believes GDP growth will “fade” in 2022. ...
The next financial year could see a “new record year” for dividends as the Australian economy continues its recovery from the COVID-19 p...