Future Fund, Melbourne, Australia, returned 1.54% on its investments for the year ended June 30, helping to bring total assets to A$64.2 billion (US$55.5 billion), according to the funds website.
The positive result in the current investment environment reflects our decision to slow the purchase of equities in the first half of the year due to concerns about pricing, David Murray, chairman of the funds board of guardians, said in a statement on the website. This allowed us to benefit from a substantial cash component in the portfolio.
Mr. Murray said the funds focus has moved to taking advantage of changed credit conditions and developing its capabilities in private markets, including property, private equity and infrastructure.
The 1.54% return does not include the funds 2 billion Telstra shares, which generated a 1.01% return. Telstra was formerly a government-owned telecommunications and media company.
The funds asset allocation excluding the Telstra shares for the year ended June 30 was Australian equities, 9.2%; international equities, 19.7%; private equity, 0.1%; global property, 1.4%; fixed interest, 7.5%; and cash, 62.1%, representing $55.7 billion in assets. The Telstra shares are worth about $8.5 billion.