The A$165.7 billion ($133.7 billion) Australian sovereign wealth fund saw its assets jump 11.5% in 2018/19 as it successfully boosted its long-term returns.
Peter Costello says more restrictions on global trade would be bad for all investors and argues that the Australian sovereign wealth fund's return target should be revised down.
The CIO of Australia's Future Fund, AsianInvestor's Sovereign Wealth Fund of the Year, discusses the challenges of managing pension portfolios and its approach to co-investment.
Asset owners, fund managers and central banks alike are putting an increasing focus on infrastructure, with the asset class tipped for a big rise in prominence in the coming years.
The $93 billion state investor has beaten its return target for its first 10 years – though not the past financial year – but expects the next decade to be trickier. Private markets have been a bright spot.
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.
The fund's target cash weighting was 10%, but it raised the level to near-20% due to strength of returns and resultant selling down of assets. It expects future returns to be lower.
Costello steps up at the Future Fund, Good departs BlackRock, Vanguard adds Asia investment chief, AMP Capital replaces fixed income head, and Lazard targets buildout with Dubai team.