Future Fund shows negative growth
AUSTRALIA - The Future Fund, the country's reserve for future superannuation payments, delivered a return of -1.81% over the first quarter of the year.
The fund has over 56% of its assets in cash, which delivered positive returns, and two billion shares in Telstra, which delivered a 3.23% return over the quarter, but are in escrow until 20 November and therefore not included in the overall results.
David Murray, chair of the Future Fund board of Guardians, said the poor overall performance, below the long term required level of Consumer Price Index plus 4.5% was a direct result of the global economic turmoil.
He commented: "The global scale of the current financial situation presents a formidable challenge to all investors. It appears to be a once in a century occurrence particularly affecting shares in financial institutions which normally make up around of quarter of market value in global equity markets."
The Future Fund said the number of global government bailouts, forced mergers of financial institutions, growing belief in a worldwide economic slowdown, were indicative of the difficult operating environment.
Murray added: "As a long term investor holding liquid assets, we are well placed to deal with this environment and take opportunities as they arise. Given the very difficult investment conditions, we continue to take a carefully considered approach to building the portfolio."
David Murray, chair of the Future Fund board of Guardians, said the poor overall performance, below the long term required level of Consumer Price Index plus 4.5% was a direct result of the global economic turmoil.
He commented: "The global scale of the current financial situation presents a formidable challenge to all investors. It appears to be a once in a century occurrence particularly affecting shares in financial institutions which normally make up around of quarter of market value in global equity markets."
The Future Fund said the number of global government bailouts, forced mergers of financial institutions, growing belief in a worldwide economic slowdown, were indicative of the difficult operating environment.
Murray added: "As a long term investor holding liquid assets, we are well placed to deal with this environment and take opportunities as they arise. Given the very difficult investment conditions, we continue to take a carefully considered approach to building the portfolio."
Latest stories
PLSA shrinks board by four in governance overhaul
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller DB schemes 15 points less well-funded with 'less robust' risk management
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
Longevity 14: CDC urged as solution to demographic challenges and 'insolvent' state system
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.
Back to Top
Most read
