The Future Fund is shifting more of its $123 billion (£93.55b) portfolio into private investments as ultra-low interest rates reduce returns and raise risks in public equity and bond markets.
On Tuesday, Australia’s sovereign wealth fund announced a strong 4.6 per cent quarterly performance to increase its assets to $123 billion (£93.55b), which, according to managing director David Neal, was boosted by successful investments in non-listed businesses
Mr Neal said, “Private markets is an area where we continue to put a lot of focus”. He explained the fund was looking to move “away from relying on market returns which are likely to be subdued [in favour] of genuine skill based opportunistic returns”.
Mr Neal said markets had “broadly reflected the overarching story line” of the fund with equity market returns “lacklustre” over the past financial year. But improved market conditions helped boost portfolio returns in the final quarter of the financial year.Risk Warning:
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