Future Fund banks on equities for big returns

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Before you get too carried away with their returns Steve, do not forget that unlike you and me, the FF Guardians do not have to pay any tax ! Investing is a whole lot easier under those circumstances.

An Australian Future Fund should be investing in Australian assets, helping build the Australian economy, but is instead investing most of its assets off-shore, building the economies of other countries. This may come back to bite them when the Australian dollar falls even more heavily in the next couple of years and the fund has to inject even more substantial amounts of cash into its positions. Demonstrating a little bit of faith in Australia might then seem to have been a better bet.

I take your point about investment in infrastructure here...it's a very good point.

But as far as the dollar is concerned, it is a good hedge to the falling dollar...as long as they sell their USD investments before that currency itself crashes and burns.

They would be better off investing in the 3 factor model vis-a-vis Fama and French. Low cost, disciplined and intellectually robust. Let's hope these people don't think that they can outperform markets with this amount of money!

It's a shame the Future Fund team weren't also put to use investing in a Sovereign Wealth Fund from the incredible taxes derived from mining profits since circa 2002.

Instead, Howard squandered the lot of it...

Wouldn't it be lovely if we had cash put aside for a rainy day like Norway, Singapore, the United Arab Emirates, etc... You know... all the smart countries!