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Australian Future Fund Posts 15.4% in 2012-2013

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futurefundAccording to a news release issued September 2, 2013, Australia’s Future Fund posted a 15.4% gain for financial year 2012/2013 ending June 30th. The return includes a 4.4% gain last quarter.

The gain brings the Future Fund to A$ 88.9 billion (US$ 80.4 billion), realizing a return of 6.2% per annum since its inception in May of 2006.

Mark Burgess, managing director of the Future Fund, notes the performance was, in part, “a result of improved conditions and confidence and the significant degree of policy stimulus being applied across many global markets.” Mr. Burgess and his team also adjusted the Future Fund’s exposure to equities.

In addition, Mark Burgess will be leaving the Future Fund. Informing the board of guardians, Burgess will stay onboard to help facilitate a smooth transition.

In a September 4th press release, Mark Burgess stated, “I appreciate the support I have received from the Board and my colleagues in the Agency and the areas that we have been able to develop in my time with the Fund. With recent strong performance and the Fund now fully invested, I have decided to return to the private sector to bring my experience to that field.”

The infographic below reveals the change in strategy the Future Fund took from from 2012 – present.

Portfolio at 30 June 2012 Target Allocation at 30 June 2013 Actual Portfolio at 30 June 2013
Listed Equity 32.90% 33% 40.60%
Private Equity 6.40% 8% 7.30%
Tangible Assets 12.80% 16.50% 14.10%
Alternative Assets 19% 17.50% 15.60%
Debt 18.30% 17.50% 16.60%
Cash 10.60% 7.50% 5.80%

Data may not sum due to rounding

The Future Fund’s mandate is to return CPI + 4.5%-5.5% over the long term per annum. It has beaten that benchmark on a rolling three year basis since September of 2011. The success contrasts financial years 2007/2008 and 2008/2009 when the fund severely underperformed its benchmark. CPI for those years was 4.5% and 1.5% respectively and the nominal return for those years was 1.5% and -4.2% respectively.

SWFI First Read, September 19, 2018

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QIA Eyes Investment in Chinese Lender Lufax

The Qatar Investment Authority (QIA) is in talks about a possible investment into Shanghai-based Lufax, one of China’s largest online lenders. The seller of the possible stake is China’s Ping An Insurance (Group) Co. Ltd. Lufax’s official name is Shanghai Lujiazui International Financial Asset Exchange Co. Ltd.

Wealth Funds Back Hotpot Giant

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Japanese Government Capital Provides Initial Life for Texas Bullet Train

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Dallas-based Texas Central Partners, LLC is the developer of a proposed high-speed rail system, dubbed the Texas Bullet Train, between Dallas and Houston. Project costs are estimated between US$ 12 billion to US$ 15 billion. The developer secured US$ 300 million in project loans from Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) and the Japan Bank for International Cooperation (JBIC). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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DOJ Investing Tesla Over Musk Comments

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The U.S. Department of Justice (DOJ) is conducting a fraud investigation over Tesla as its CEO Elon Musk made public statements on twitter. This is a criminal probe. In addition, earlier, SWFI reported the U.S. Securities and Exchange Commission (SEC) is conducting a civil inquiry into Elon Musk regarding his statements.

This all surrounds Musk tweeting in August that he was thinking of taking Tesla private and had “funding secured” for the transaction. Both government authorities are seeing if Musk misled investors and violated federal securities laws with his public statements.

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