Australian Future Fund

[Crabnet]

So the FF was better off by selling its tls shares?

Who knows what the future will bring?.
They have decided that they were overweight Telstra and have diversified the portfolio. Too many eggs in one basket for their liking.
So amongst overseas share purchases they have been buying commercial property at a time they think prices were depressed.
Buying into airports at a time when they think they are fully priced but not in a bubble. Looking for long term income.
Reducing cash because of poor cash rates.

 

[VYBerlinaV8]

I keep an eye on the Future Fund. I strongly suspect there will come a day when its purpose of use is changed so government can spend some (or all) of it, but for now it's a nice asset for our country to have.

The total asset value between the 4 funds should crack $100B in the next year or so.

 

[Angel]

I thought the Future Fund was emptied out to pay for the GFC stimulus packages. (wiping egg from face)

 

[oracle]

Federal Cabinet is set to confirm former treasurer Peter Costello's appointment as chairman of the Future Fund, The Australian Financial Review reports.

Full article here

Cheers,
Oracle.

 

[Deltaberry]

The FF's mandate is to avoid risk

 

[oracle]

The FF's mandate is to avoid risk

In that case only buy US government treasuries (Bonds).

Cheers,
Oracle.

 

[redwing]

I thought the Future Fund was emptied out to pay for the GFC stimulus packages. (wiping egg from face)

I originally thought it was for every Australians future, like a sovereign wealth fund....Tis not

 

[VYBerlinaV8]

I originally thought it was for every Australians future, like a sovereign wealth fund....Tis not

The reality is, though, that the money is not, and probably will not, be used for its original purpose. And therein lies the interesting part - what else will they use it for?

Personally I hope they leave it, or even add a bit to it.

 

[Ausprop]

The reality is, though, that the money is not, and probably will not, be used for its original purpose. And therein lies the interesting part - what else will they use it for?

Personally I hope they leave it, or even add a bit to it.

how will they have a choice ho wit is spent? the superannuation must be paid out to our copious amounts of public servants

 

[VYBerlinaV8]

how will they have a choice ho wit is spent? the superannuation must be paid out to our copious amounts of public servants

They will pay super for public servants the same way they do now, out of current revenue. Only a small proportion of public servants actually retire each year, and the majority go onto a defined benefits pension anyway. Also, since about 10 years ago public servants have had a far less generous scheme which will reduce the per head liability anyway.

The future fund has been around for what, 8 years? And in that time it hasn't been touched for its original purpose. There's no reason to change now.

 

[WASP]

Defined benefits pension = taxpayer funded union pensions

They can they are backed by the government who can borrow and tax the rest of us

 

[VYBerlinaV8]

Defined benefits pension = taxpayer funded union pensions

They can they are backed by the government who can borrow and tax the rest of us

The newer system, which has been in place for 10 or so years, is not defined benefit. It's actually not much different from normal super, except govt doesn't actually put the money aside (they use it for other things).

 

[roe]

Future Fund set up mainly for unfunded liability of the CSS and PSS
defined public service pension...this system close 10-12 years ago....
but CSS and PSS people start to reach retirement so they need money put aside for
meeting this liability and hence Liberal setting it up

Most of the money will go to CSS and PSS pension these run into Billions and it is unfunded ... it just I own you type until the Liberal setup the future fund ...

what left over they may use it for other purpose but this future fund mainly setup to deal the unfunded CSS and PSS liability ...

 

[VYBerlinaV8]

Future Fund set up mainly for unfunded liability of the CSS and PSS
defined public service pension...this system close 10-12 years ago....
but CSS and PSS people start to reach retirement so they need money put aside for
meeting this liability and hence Liberal setting it up

Most of the money will go to CSS and PSS pension these run into Billions and it is unfunded ... it just I own you type until the Liberal setup the future fund ...

what left over they may use it for other purpose but this future fund mainly setup to deal the unfunded CSS and PSS liability ...

Many of these people are already being paid out, and not out of the future fund. No-one has ever been paid out of the future fund.