Future Fund

futurefund Future Fund

Country: Australia

Established: 2006

US$ Billion: 80

Transparency Rating: 10

Origin: Non-commodity


Summary:
Australian Government Future Fund is an independently managed investment fund into which the Australian Government deposits its budget surplus. The Future Fund was established by the Future Fund Act 2006. The purpose of the fund is to meet the government’s future liabilities for the payment of superannuation to retired public employees.

Strategies and Objectives:
The objective of the Future Fund is to meet unfunded superannuation liabilities. The Future Fund is required to target an average annual return of at least the Consumer Price Index (CPI) plus 4.5 to 5.5% per year. This is over the long term with acceptable but not excessive risk.

Future Fund – Asset Allocation 12/31/2010

Asset Class A$ million Percentage of Fund ex-Telstra
Cash 10,900 15.8
Fixed Income 12,977 18.8
Global Equities 17,863 25.8
Australian Equities 7,954 11.5
Alternative Assets 10,541 15.2
Private Equity 2,158 3.1
Infrastructure & Timberland 2,946 4.3
Property 3,819 5.5
Total ex-Telstra 69,159 100
Telstra 2,603
Total Future Fund assets 71,762

Governance:
The Future Fund is controlled by an independent Board of Guardians that is collectively responsible for the investment choices of the fund.

Sovereign Wealth Enterprises:

Future Fund Investment Company No.1 Pty Ltd

Future Fund Investment Company No.2 Pty Ltd

Future Fund Investment Company No.3 Pty Ltd

Future Fund Investment Company No.4 Pty Ltd

Future Fund Investment Company No.5 Pty Ltd