The Future Fund today announced it had upped its cash and fixed interest allocation from 12.8% to 20.6% from one year ago. Other allocations include Australian equities 6.5%, global equities 24.5%, private equity 10.4%, property 6.5%, infrastructure 7.1%, debt securities 11.8% and alternative assets 12.6%.
According to CEO David Neal:
”What makes us cautious is that alongside those risks is that you are expecting to get low returns….Markets are fairly fully valued and so you are not getting rewarded for that risk’’
6.5% in Aussie equities and 6.5% in property and a big exposure to a falling Australian dollar and cash. A very sensible attitude towards dodgy Australian assets.
