Future Fund de-risks further, makes gloomy forecast
Reporting its first quarterly loss since 2012, the Australian fund says returns on risk assets are no longer sufficient and is worried about the ability of monetary authorities to respond to future weakness.
After doubling its cash allocation last year, Australia’s sovereign wealth fund took up an even more defensive position as of the end of the first quarter of 2016, amid continued concerns about global stock markets.
The A$117 billion Future Fund said the outlook remained poor and has raised its cash position to 22.9%. This came as the institution announced its results for the year so far last Friday, indicating a first quarterly loss since 2012. In 2015 it had increased its cash …
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