Future Fund decreases Telstra stake, reports 12.4% return on portfolio

According to The Australian, the value of Telstra in Future Fund's portfolio is A$939 million ($959 million), locked within 313 million shares. The fund has further ambitions to continue reducing its stake in the company until it holds approximately 100 million shares. This is a sizable reduction from the 17% stake Future Fund had held in 2006, when it assumed the government's holding position in Telstra amid a tiered privatization process for the company.

The news comes as Future Fund released its annual report for the fiscal year ending June 30. In the report, Future Fund noted that its Telstra portfolio saw 2.9% return during the year, and 2.7% for the quarter.

On the whole, Future Fund posted a robust 12.4% return on its investments in the 2010-2011 fiscal year, excluding its Telstra holdings. In the preceding three years to June 30, the fund reported 6% return, and generated 5.2% return for the five years since its launch.

Future Fund's total assets under management came in at A$75.15 billion by the fiscal year's close. Its has 21% in global equities, 11.2% in Australian equities, 19.4% in debt securities, 18.6% in alternative assets and 8.8% in cash, The Australian summized.

Future Fund's private equity holdings specifically increased by 0.5% to A$2.9 billion - an increase by the same margin of its infrastructure holdings, which hit A$3.91 billion.

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• Topics
• Australasia
• Funds
• Future Fund