Future Fund continues to increase PE holding

31st Oct 11

The Future Fund has further increased its allocation to PE while reducing exposure to volatile assets, according to its latest portfolio allocation statement.

The Fund's holding of PE assets now stands at 5% ($3,653b), up from 3.9% of its total assets for the last quarter (at $2.896b). This follis 3.4% allocation to PE the previous quarter and from 3% a year ago.

FF Board of Guardians Chair David Murray said: "In line with its long term mandate the Board continues to focus on building a diverse portfolio comprising assets capable of generating strong returns. While this inevitably exposes the Fund to periods of market volatility the Board has carefully thought through its risk appetite and positioned the Fund to avoid excessive risk.

"The Board is mindful that the uncertainty in financial markets can be expected to endure as the global economy continues to undergo significant structural adjustments over years to come. The portfolio's recent positioning, together with a decision to further reduce exposures to listed equity markets and increase the cash position, helped to reduce the impact of market falls on the portfolio."

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