Value of Australia’s Future Fund Exceeds $100 Billion for the First Time
By Vittorio Hernandez | August 5, 2014 8:21 AM EST
Australia's Future Fund has reached $101 billion on Monday, exceeding the $100 billion mark at the end of June after its investment returns for the 2013-14 financial year yielded $12 billion.
Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009.
Former Treasurer Peter Costello established the fund in 2006. Since then and despite the global financial crisis in 2008, the fund enjoyed an average nominal annual growth rate of 7.1 per cent, just slightly lower than its 7.2 per cent target.
Costello, the chairman of the fund, said that during the fund's early days when the investment climate was challenging, resulting in returns yielding lower than the company's target range. However, he pointed out that disciplined adherence to clear objectives resulted in good growth rates over the long term.
While Australia reached a landmark with the fund's reaching a milestone, the amount of $101 billion is paltry when compared to Norway's Sovereign Fund valued at $878 billion, making each Norwegian a millionaire.
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