Future Fund, Melbourne, Australia, returned -1.81% in the third quarter and -0.24% since the fund started investing assets in July 2007, according to a news release on the fund’s website.
“The global scale of the current financial situation presents a formidable challenge to all investors. It appears to be a once-in-a-century occurrence particularly affecting shares in financial institutions, which normally make up around of quarter of market value in global equity markets,” David Murray, chairman of the fund’s board of guardians, said in the news release.
Australian and global equity market indexes fell 11% for the quarter, which outweighed the performance of the fund’s cash holdings.
“As a long-term investor holding liquid assets, we are well placed to deal with this environment and take opportunities as they arise,” Mr. Murray said. “Given the very difficult investment conditions, we continue to take a carefully considered approach to building the portfolio.”
The returns do not include the fund’s 2 billion shares in Telstra, formerly a government-owned telecommunications and media company, which comprise about 13% of the fund’s total A$63.4 billion (US$43.8 billion) in assets.
Excluding the Telstra shares, the fund’s asset mix as of Sept. 30 was 56.2% cash; 20.9% global equities; 10% debt securities; 9.7% Australian equities; 1.6% property; 0.6% alternative assets; 0.5% private equity; and 0.5% infrastructure.
