The Melbourne, Australia-based Future Fund's exposure to global equities surged nearly 50% in the July-September quarter, with the A$60 billion-plus (US$55 billion) fund also seizing opportunities in debt securities and property as the proceeds from the Telstra sell-down and a reduction in cash holdings were spent.
Between the end of June and Sept. 30, the piggybank for commonwealth public servant liabilities recorded an increase in developed market global equities to 19.5% from 13.4% of its ex-Telstra portfolio, or A$11.7 billion from A$7.3 billion.
Recent beneficiaries of the fund's bullishness on global equity markets are value managers Altrinsic Global Advisors and IronBridge Capital Management.
The fund's property exposure leapt to 2.2% from 1.4% of the ex-Telstra portfolio, assisted by its taking an interest in Bullring shopping center in Birmingham, England, an exposure to be managed by Henderson Global Investors.
The fund's ex-Telstra debt securities exposure rose to 24.1% from 23.1%, with recent highlights including a reputed A$1 billion mandate with U.S.-based high yield manager Oak Hill Advisors.
This story first ran in Investment & Technology, Sydney.