Australia’s Future Fund reveals that the fund’s mixed asset portfolio (excluding Telstra holding) returned 5.6 percent in the third quarter.
The fund has just over 10 percent in Australian equities, 22.8 percent in global equities. Safer instruments dominate, with debt holdings at 24 percent and cash at 31 percent.
The mixed-asset fund significantly underperforms an equity-only portfolio. For example, the MSCI world equity index has risen more than 17 percent in the Q3 alone.
The Future Fund is a rare SWF which reports results quarterly, like a public-listed firm. The underperformance might outrage the public though — so is this worth it?
Recall remarks last month by David Murray, the fund’s chairman of the board of guardians , which highlighted some downsides in reporting quarter after quarter.