Future fund beats super funds on returns

Future fund holds a little more than 91 billion dollars to pay the defined benefit pensions to public servants. Over three years, it has returned almost 9.7% annually and over five years, it has touched 8.2% annually. It has beaten its previous record of 7% for three years and 6.8% for 5 years.

Hike in performance

With the comparison of performance done by the consultant Chant West, the future fund has won over the super fund which has grown 9.7% annually for three years and only 6.3% over 5 years. It outran the most immensely pooled superannuation funds in Australia. The future fund was brought in because it was anticipated that the government will come up with some unconventional policy action and the central bank wanted to counterattack these hurdles.

What is the future?

Today, the fund has diverted 10% of its total fund in local stocks, 5.6% in property, 23.9% in global shares and 8% in the infrastructure sector and in alternative assets, it has deployed 15.2%. It is said that the prospective returns are comparatively low but the variations are on a significant level. On releasing the figures, the future funds mentioned that it expected large deleveraging forces from many economies while some developing markets will grow continuously though there are few risks with respect to the anticipated growth.

Source: http://www.theaustralian.com.au/business/wealth/future-fund-beats-all-growth-pooled-super-funds-on-returns-over-5-years/story-e6frgac6-1226745103800

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