| The Future Fund is on track for to exceed its CPI plus 4.5% target this financial year, after earning a solid 2.9% in the September quarter. Australia’s sovereign wealth fund may benefit from any further outperformance of international markets. It holds a hefty 34.1% of its portfolio in global equities, including 24.4% in Developed Markets offshore, versus just 9.0% in Australian equities.
The Future Fund generated a 14.3% return in fiscal 2013-14, in creasing its value to $101.59 billion. “Globally, policy makers are seeking to balance the challenge of moving towards more normal policy settings while maintaining efforts to encourage economic growth,” Future Fund MD David Neal said. “This continues to present both risks and opportunities for investors.”..............................................Full Article: Source |