Sovereign Wealth Fund Institute » Future Fund

Future Fund Releases Performance

Web Director — Tue, 31 Jan 2012 05:01:18 +0000

According to the press release, “Since the first contribution to the Future Fund on 5 May 2006, the Fund has generated a return of 4.2% per annum.

The Future Fund’s return for the calendar year 2011 was 1.6%. The return for the quarter to December 2011 was minus 0.2% and for the first six months of the financial year it was
minus 3.1%.

David Murray, Chair of the Future Fund Board of Guardians said that significant stresses on the global financial system remained. “While there have been some positive signs in the US economy, underlying pressures remain and Europe continues to wrestle with debt-related challenges and the risk of recession. The prospect of a lengthy period of adjustment and subdued economic growth is generally apparent as signalled in global and domestic securities markets.

“In this environment, the Board continues to place a premium on patience and liquidity, ensuring that the portfolio is prudently positioned to take up attractive opportunities while avoiding excessive risk.

“Notwithstanding the current environment, the Future Fund was set up as a long term investment fund and the Fund’s statutory purpose and mandate leads the Board to continue to position the portfolio to achieve its long term objective,” said Mr Murray.”

Future Fund Fully Integrates Its Telstra Holdings

Web Director — Tue, 23 Aug 2011 06:54:42 +0000

Telstra has been a large component of the Australian Future Fund’s investment portfolio for a very long time. Recently, in mid-August the Future Fund completed its portfolio rebalancing for holdings in Telstra. Telstra is an Australian media and telecommunications company. The Future Fund has reduced their holdings in the Australian firm down to 0.8% or around 100 million shares.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Future Fund Fiscal Year Returns 12.4% Ex-Telstra

Web Director — Wed, 10 Aug 2011 05:05:22 +0000

According to the press release, “the Future Fund’s return for the financial year ending 30 June 2011 (excluding the Fund’s Telstra holding) was 12.4%. Over the three years ending 30 June 2011 the return was 6.0% per annum. Since the first contribution to the Future Fund, a little over five years ago on 5 May 2006, the Fund has generated a return of 5.2% per annum. The return for the last quarter of the financial year was 0.6%.

The Future Fund’s Telstra portfolio returned 2.9% over the year and 2.7% for the quarter. Reflecting the long-term investment mandate for the Future Fund, the Board of Guardians will continue to focus on performance over rolling ten year periods using rolling five year
periods to gauge progress.

Mr David Murray, Chair of the Board of Guardians, said that the positive returns of 2010/11 reflected the careful construction of the portfolio since the Fund’s inception in May 2006.

“We have witnessed an extremely difficult global economic environment over the last few years and this is continuing to present challenges,” said Mr Murray.

“The Board remains focussed on prudently building a diverse portfolio that is capable of generating good returns in positive environments but provides some protection in weaker markets.”

“The portfolio’s positioning, and our dynamic approach to building and adjusting the portfolio, has helped generate solid performance for the Fund since inception and positions it appropriately for its long term mandate.”

“The reduction in the holding of Telstra shares has continued in line with the Board’s longstated strategy to reduce the holding in an orderly way over the medium term and without untoward market impact.”"

Future Fund Sells Out of Positions in Mine and Ammunition Producers

Web Director — Mon, 09 May 2011 06:23:59 +0000

On December 4, 2008, the Government of Australia signed the Convention on Cluster Munitions. The Convention on Cluster Munitions is an international treaty that prohibits the development, use, transfer, and stockpiling of cluster weapons. Australia’s Parliament has not yet passed the bill to ratify the international treaty.

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TIAA-CREF and the Future Fund Partner on Ownership of 685 Third Avenue Tower

Web Director — Sat, 12 Mar 2011 07:43:30 +0000

According to the press release, “TIAA-CREF and the Future Fund, an AUD$71 billion Australian sovereign wealth fund, today announced a new venture that will target co-ownership opportunities in real estate properties. As a first step, the Future Fund has taken an approximately 49 percent stake in 685 Third Avenue, which was previously purchased for USD$190 million by TIAA-CREF in 2010.

685 Third Avenue is a 33-story, 600,000 square foot office building in Midtown Manhattan between 43rd Street and 44th Street. Currently vacant, the building is undergoing renovations including lobby and shop front improvements. TIAA-CREF and the Future Fund plan to pursue additional real estate opportunities over the next two years. Together, the companies will target core and core plus assets located in the CBD and Class A suburban regions of primary metropolitan areas in the US.

“TIAA-CREF is thrilled to partner with the Future Fund and complete our first transaction together. We believe 685 Third Avenue offers an excellent long-term investment opportunity and has the potential to generate significant value by attracting new tenants,” said Phil McAndrews, TIAA-CREF Managing Director and Head of Real Estate Portfolio Management. “We will continue to expand our real estate portfolio through targeted and strategic acquisitions.””

Future Fund Joins in on Gatwick

Web Director — Tue, 21 Dec 2010 08:05:31 +0000

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Paul Costello to leave Future Fund

Web Director — Wed, 15 Sep 2010 04:51:20 +0000

Mr Paul Costello, General Manager of the Future Fund Management Agency has informed the Board of his intention to leave the organisation. The Chair of the Future Fund Board of Guardians, Mr David Murray, expressed his gratitude to Mr Costello for his role in guiding the Future Fund during its early development.

“Paul has played a critical role in building the Agency and recruiting a skilled team to develop and implement the investment program. These foundations have been laid while navigating the additional challenges of an unprecedented period of volatility in financial markets.”

Mr Costello said, “I am proud to have led the Agency through its start-up phase and to have brought together the people, capabilities and infrastructure for its future. As the organisation moves into a new phase the time is right for new leadership.”

Mr Costello joined the Agency as its first employee in November 2006. From holding an initial $18 billion in a cash account, the organisation today manages more than $87 billion of investments through partnerships with more than 60 investment managers globally. Mr Costello will remain in his role until around the end of the year to facilitate a smooth transition to the new leadership of the Agency. The Board of Guardians is conducting a search for a new General Manager, seeking expressions of interest from Australia and overseas.

Source: Australia Future Fund

Future Fund to invest in start-up UK lender

Web Director — Mon, 06 Sep 2010 04:23:17 +0000

According to the Sydney Morning Herald, “The taxpayer-backed Future Fund is turning its sights to the troubled British banking industry, investing in the country’s largest new lender to start up since the global financial crisis. The fund joined the high-profile financiers Lord Rothschild and Sir Ronald Cohen in a deal to invest €450 million ($633 million) in Haymarket Financial, which will specialise in lending to medium-sized businesses, London’s Sunday Telegraph reported.

Investors have tipped a total of €1 billion into HayFin, as the new lender is known. The bank will target businesses worth between €100 million and €500 million.”

Lead Future Fund investment strategist resigns

Web Director — Wed, 21 Jul 2010 05:29:11 +0000

Tony Day

Tony Day, a leader helping shape the Australian Future Fund’s investment strategy is finishing up his time at the sovereign wealth fund. He was initially hired to assist building the fund’s investment capability. The Future Fund recently is involved in a myriad of different asset classes.
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Future Fund Chief Says Resources Tax Must Change or Be Dropped

Web Director — Sat, 05 Jun 2010 20:51:56 +0000