ASX chairman to lead Australia’s Future Fund

Already tipped as the government's preferred choice, Gonski's appointment was announced by Treasurer Wayne Swan in a statement on Tuesday. The delay in naming the new chairman - Murray's contract was extended by 12 months last year - has prompted criticisms of the process. Last year Gonski himself advised the government on the appointment.

Murray told The Australian Financial Review that the process had been disruptive to Future Fund's board of guardians. Brian Watson, an outgoing board member, reportedly said that the government had misled the public by initially hiring Gonski as an advisor.

Future Fund, which was set up in 2006 to provide for unfunded superannuation liabilities, relies on the government for funding but a board, led by the chairman, decides on asset allocation. Steven Harker, CEO of Morgan Stanley Australia, is the latest appointee to the board, joining the likes of Peter Costello, a former treasurer, and Stephen Fitzgerald, former chairman of Goldman Sachs Australia.

As of December 31, Future Fund had A$3.89 billion, or 5.3% of its overall portfolio, in private equity. The fund has 20.8% of its assets in global equities, 10.8% in Australian equities, 6% in property, 5.7% in infrastructure and forestry, 17.8% in debt securities, 19.8% in alternative assets such as hedge funds, and 13.8% in cash. Its targeted return is at least the rate of the consumer price index plus 4.5-5.5% per annum.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Australasia
• People
• Sovereign wealth fund
• Australia
• Future Fund
• Appointments