Oct 31 (Reuters) - Australia's sovereign wealth manager, the Future Fund, on Monday posted a return of 1.5 percent for the last quarter, in line with its target, following a disappointing annual performance in the 2015/16 financial year.
"Like all investors across major global economies, we are facing a low-return environment," said Peter Costello, chairman of the A$124 billion ($94.17 billion) Future Fund.
In June, it posted a return of 4.8 percent for the last financial year, versus an expected 5.5 percent, as the fund lowered its exposure to risk assets due to global growth uncertainty. fund had returned 15.4 percent in the 2014/15 year.
In September, the Future Fund was part of a consortium which won a A$9.7 billion bid to purchase Australia's busiest port. China Investment Corp and Canada's Ontario Municipal Employees Retirement System were also part of the winning group. - both Australian and global - accounted for 29.4 percent of its assets, up from 28.8 percent in June. The allocation to cash increased to 22.1 percent, from 21.7 in June, while property edged down to 6.5 percent from 7 percent in the last quarter.
The Future Fund was set up in 2006 with contributions of A$60.5 billion to cover pension liabilities for public servants. ($1 = 1.3168 Australian dollars)