Institutional Investors

Australia’s Future Fund grows alternative investments to 20%


Australia’s A$69 billion ($68.7 billion) sovereign wealth fund, The Future Fund, has increased its allocation to alternative assets from 15% to 20%, according to its recently-released annual report covering the financial year ending 30 June 2010.

The Future Fund’s alternatives portfolio, which includes hedge fund allocations, stood at A$9.8 billion – more than triple the A$2.7 billion from the previous year. It returned 10.6% for the financial year 2010, with its three largest sector exposures in distressed and event-driven (38%), multi-strategy/relative value (24%) and macro directional (19%).

Allocations from the alternatives portfolio were made to nine US firms – including BlackRock