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 funds 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 funds 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 funds 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 funds 2 billion shares in Telstra, formerly a government-owned telecommunications and media company, which comprise about 13% of the funds total A$63.4 billion (US$43.8 billion) in assets.
Excluding the Telstra shares, the funds 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.