Future Fund increases cash holdings

The $117b Future Fund is sitting on $20bn of cash which represents nearly one fifth of the fund’s assets. The Fund’s head of debt and alternatives, Jame Swaldron told a conference last week cash as a percentage of assets had risen from 15% held in March. He said the reason for the high proportion of cash was because much of the equities, bonds and alternatives market were overvalued as a result of the low-interest rate environment.