Register  
Future Fund climbs sovereign league tables
Friday, 18 March 2011 12:50pm

Australia's Future Fund is now the 13th largest sovereign wealth fund in the world, moving up from 15th place according to new figures from alternative investment research firm Preqin.

The report compares the world's sovereign wealth funds in US dollar terms and valued the Future Fund at US$71 billion this year, putting it just outside the top 10 funds on the global league table.

The Future Fund grew by US$11.4 billion from US$59.6 billion last year, raising it from 15th place, Preqin said.

In the 2011 Sovereign Wealth Fund Review, the research house estimated the largest sovereign fund to be the Abu Dhabi Investment Authority though it has never released information on its assets under management. It was listed as having total assets of US$625 billion, funded by the export of hydrocarbons since 1976.

Second largest was Norway's Government Pension Fund - Global, with US$530.6 billion followed by China's SAFE Investment Company with US$347.1 billion.

Globally, sovereign wealth funds have grown their assets under management by 11 per cent to nearly US$4 trillion this year, up from US$3.59 trillion in 2010, the report said.

The Australian Government's Future Fund, set up in 2006 with US$18 billion in seed capital, must return between 4.5 per cent and 5.5 per cent returns above the Consumer Price Index over the long term to meet its investment mandate.

The report said the Future Fund's equities allocation fell from 44 per cent of total assets in 2009 to 36 per cent in 2010. It's Australian equities component fell from 18.5 per cent to 11 per cent of its total assets.

It owns large holdings in the big four banks, BHP Billiton and Rio Tinto, QBE Insurance, Suncorp-Metway, Wesfarmers and CSL.

In February this year, the Future Fund trimmed its Telstra stake, and holds about 6.75 of the telecommunications firm, the report said. The fund says its holding is worth A$2.6 billion.

In its private equity allocation, the Future Fund followed a trend among global firms to greater interest in distressed and turnaround strategies. The Future Fund's distressed investments were as high as 45 per cent of its total private equity commitments in 2010, the report said.

It also had 14.6 per cent of total assets invested in hedge funds with a preference for Australasia, Asia and Europe.

Blogs
Follow the industry experts.
Christopher Page
Christopher Page
Managing Director

Medcraft's appalling speech
I am surprised. More than that, I am astonished, shocked. Last week I was left speechless by the address that the Australian Securities ...read more
 
Benjamin Ong
Benjamin Ong
Chief Economist

Reflation, rotation and the taper
'Tis being my final type (drivel, to some gentle readers) for the year, we'll take a look back at the 2013 that was to seek the lessons ... read more
 
Alex Dunnin
Alex Dunnin
Director of Research & Editorial Services

Women-led companies better for investors
The Australian government end last year released its first Gender Equality Scorecard and while the results are discouraging, a separate ... read more
News Search   
VideoBrought to you by
State Street Global Advisors SPDR S&P 500 ETF
We invite you to watch our latest video program on FSiTV featuring State Street Global Advisors (SSgA) head of SPDR ETFs Amanda Skelly, as interviewed by Mark Smith, deputy editor of Financial Standard. In ... Watch video
Adviser Efficiency
The secret sauce to an enduring adviser-and-client relationship changes from time to time. One minute it's about the adviser's ability to provide expert advice around investments and the next minute, it's ... Watch video
Why Multi-Asset Solutions?
Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management talks about the advantages of objective-based investing in the multi-asset space. Watch video
Get it
Daily
FREE to your inbox, get the Financial Standard Daily Email.
Get the Free
iPad app
Download the Financial Standard iPad app for FREE
Industry
Events
FEB
01
MAR
10
Adviser Big Day Out Investment Manager Roadshow-Perth
11
Adviser Big Day Out Investment Manager Roadshow-Adelaide
12
Adviser Big Day Out Investment Manager Roadshow-Melbourne
18
Adviser Big Day Out Investment Manager Roadshow-Brisbane
19
Adviser Big Day Out Investment Manager Roadshow-Sydney
News
Bites

$245 (inc GST) for 1 year
 
 
Copyright © 1992-2015 Rainmaker Group
All material on this site is subject to copyright. All rights reserved. No part of this material may be reproduced, translated, transmitted, framed or stored in a retrieval system for public or private use without the written permission of the publisher.
Link to something HZ6WHa1u