What to do with a $25.2 billion cash position?
The Future Fund grew to over A$127 billion under management as of the end of CY’16. Performance over the 12mth period was 7.8%, well above their target of 6.0% (CPI+4.5%). This strong return was achieved despite sitting on a substantial $25.2 billion (19.7% of assets) cash position. It’s worth noting that the fund now has a substantial position of A$13.9 billion (10.9%) in private equity. On the outlook for global markets they are cautious: “While global equity markets have strengthened over recent months, uncertainty regarding global monetary policy and a range of geopolitical factors remains. We maintain our long-held view that we see a challenging investment environment ahead with elevated risks and lower prospective returns than in previous years.” Latest quarterly here: (VIEW LINK)