The $200 billion Future Fund is moving more money into high-grade corporate debt
The fund believes the asset class returns are relatively more attractive than stocks
Super funds are buying more bonds, but face some regulatory constraints
The Future Fund has doubled to $1 billion its exposure to domestic corporate debt over the past year, as returns on offer in the at-times risky asset class hit their highest level in 15 years.
Chief executive Raphael Arndt said the $200 billion sovereign wealth fund had also lifted its broader exposure to high-grade debt “materially” into the billions, echoing a move by other large institutional investors to take advantage of rising global interest rates.
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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
