The Australian Future Fund on Tuesday reported a 12.8% investment gain for 2012, lifting the value of the sovereign wealth fund’s portfolio to A$82.4 billion (US$86.1 billion).
That calendar-year increase marked an improvement over the Future Fund’s 2.1% return for its fiscal year ended June 30, 2012, and its 1.6% gain for calendar 2011.
The latest advance raised the sovereign wealth fund’s annualized return since its May 2006 launch to 5.4%, up from 4.7% as of June 30, 2012, and 4.2% as of Dec. 31, 2011.
Future Fund’s annualized return for the past three calendar years stood at 7.9%. For the past five years, it was 5.3%.
As of Dec. 31, the sovereign wealth fund’s allocation to developed markets equities was 18.1% of the total portfolio, up 2.4 percentage points from the year before, while its allocation to private equity came to 6.8%, up 1.5 percentage points.
Other asset segments that saw their allocation rise from the year before were debt securities, up 1.3 percentage points to 19.1%; infrastructure and timber, up 0.7 of a percentage point to 6.4%; property, up 0.6 of a point to 6.6%; Australian equities, up 0.3 of a point to 11.1%; and emerging markets equities, up 0.2 of a point to 5.3%.
Alternative assets were down 3.5 percentage points to 16.3%, and cash fell 3.5 points to 10.3%.