The Future Fund currently has $65 billion invested in developed and emerging sharemarkets.
It has commenced a new program to invest in domestic small-cap funds.
The shift into active equities is part of a multi-year process to reposition the portfolio for what the Future Fund has described as a “new investment order.”
The head of the $200 billion Future Fund declared the easy gains fuelled by the era of cheap money is over, and the sovereign wealth giant is prepared to back stock pickers again.
Six years ago, the Future Fund transferred its entire sharemarket exposure to low-cost index tracking strategies, terminating its mandates with fund managers on the belief markets were so warped by central bank policy that it was too hard to justify paying for skill in such constrained conditions.
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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
