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Alternative Market Briefing

Australia's Future Fund returns 10.6% in fiscal year ending June 30, expands hedge funds portfolio

Tuesday, September 21, 2010

From Precy Dumlao, Opalesque Asia:

The Australian government's superannuation $67bn Future Fund managed by the Future Fund Board of Guardians and the Future Fund Management Agency, returned 10.6% for the fiscal year ending 10-June-10.

In a statement, the Future Fund board said the positive return includes a short period of negative returns (-1% during April to June). It added that the fund's $4.3bn Telstra stake generated 6.7% returns for the financial year.

Mr David Murray, Chairman of the Future Fund Board of Guardians, added that the better-than-expected market conditions of last year and the first half of 2010 contributed to the positive returns of the fund. Murray said the fund was able to emerge from the worst of the global financial crisis almost unscathed.

"Improved market confidence through the year has seen performance pick up, albeit that the outlook for global markets remains fragile in the aftermath of the global financial crisis. Cash holdings in the portfolio were reduced from 41% to 13% over the year as capital was deployed into a range of strategies consistent with our long term objective. The listed equities exposure was built as markets demonstrated some recovery from the volatility of recent times, but the design of the portfolio means we are less r......................

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