Funds Management News

Future Fund hunts for bargains in private markets

Posted by Anton Murray Consulting on . Posted in Funds Management News

Investment Magazine

Future Fund investment chief Raphael Arndt said the fund has been steadily building up liquidity in order to snap up bargains from forced sellers of property and infrastructure assets. Speaking at a briefing after the $162 billion sovereign wealth fund posted a negative return for the March quarter, Arndt said the fund had deliberately reduced its illiquid positions for “no other reason” than to seize opportunities when rivals were forced to sell-down stakes in unlisted assets to meet demands for early withdrawals from members. “Over recent years we have focused on increasing portfolio flexibility and liquidity and this has included selling or reducing more than 30 individual illiquid positions,” he said.

While the fund has taken advantage of “several opportunities” created by the market disruption in recent weeks, the CIO remains cautious. “The risks going forward remain elevated so we certainly wouldn’t be diving back in with our ears pinned back at the moment, even though we have a lot of liquidity to buy as opportunities arise.” He went on to say that private markets will settle into a new equilibrium as the economic outlook becomes clearer.

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