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.
