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By Beverly Chandler, Opalesque London:

Alternatives still dominate Australia’s Future Fund portfolio, with its 1st May publication of end March figures showing the A$77bn ($77bn) fundʼs alternatives allocation remained steady at around A$14.48 billion ($14bn).

However, in percentage terms, the fund’s allocation to alternatives has been falling steadily for the past year. As a percentage of the fund, the allocation to alternatives fell to 18.8%, from 19.8% to end December 2011 and, from 21.6% in September 2011. However, it is still the largest asset class within the Future Fund portfolio.

Over the past three months, total assets of the Future Fund rose by A$4 bn ($4bn) to A$77bn ($77bn). The Fund has generated a return of 4.9% per annum since contributions began on 5 May 2006. The Future Fundʼs return for the quarter to 31 March 2012 was 5.4% and for the financial year to date it was 2.2%. Asset classes which received significantly more funds during the quarter were global equities (both developed and emerging markets), private equity and debt securities.

Mark Burgess, General Manager of the Future Fund, noted that markets had recovered following weakness in the first six months of the financial year. "The market falls......................

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