Australia’s sovereign wealth fund modestly reduces risk levels, but remains materially invested in risk assets.
As can be seen in the image below the Australian Future Fund has increased the amount of cash it held from the year previous and decreased its exposure to Australian equities. The funds published outlook included the following: • Prolonged period of good market returns driven by exceptional policy actions that cannot be sustained indefinitely. Policy makers continue to juggle monetary settings against a backdrop of significant economic, political and geopolitical issues. Overall, prospective risks have risen but are not matched by prospective returns. Emphasis on diversification is reflected in annual and longer-term performance. We manage the portfolio dynamically to reflect our belief that prospective returns and risks change through time. We have modestly reduced risk levels, but remain materially invested in risk assets. We continue to evaluate the macro environment, identify opportunities at the asset class level and to position the Fund to be as robust as possible to a range of scenarios. To view the portfolio update click the (VIEW LINK)