Mega Australian fund takes shape

Chairman David Murray explains how the A$18 billion Future Fund will work and when it will make its first investments.
The new chairman of AustraliaÆs Future Fund says returns from the fund are unlikely to hit mandated benchmarks in its first year of operation, and that future returns will depend on the boardÆs independence from government policy.

David Murray says the fund, which has been established to meet unfunded superannuation liabilities for federal government employees, is expected to return a rate of CPI plus 4.5%-5.5% but that this wonÆt be achieved in its set-up phase.

He also says the task of meeting unfunded liabilities will be challenging given that the government hasnÆt committed to making an annual injection to the fund.

Murray, who recently retired as the chief executive officer of the Commonwealth Bank of...

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