| The Future Fund has increased its cash holdings to 15 per cent over the last quarter, signifying a growing sense of caution at Australia's sovereign wealth fund as it seeks safe haven at a time of record low interest rates and "overpriced" assets. More than $17 billion, or 15.2 per cent of the fund's assets were held in low-returning cash at the end of the March quarter, up from $14 billion or 12.8 per cent at the end of the December quarter.
Fund managers tend to move to cash to protect their investments from losses in the event of a downturn. But a macro-economic environment dominated by ultra-low rates and even negative yields in some parts of the world means that in this cycle, cash returns will be poor...............................................Full Article: Source
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