The Future Fund must remain independent if taxpayers are to benefit from the fund, said its chair David Murray yesterday.
There should be no government interference in the fund's stock selection, asset allocation and market timing, because this is only way to maximise long-term returns, Murray told an audience at the Australian Institute of Company Directors.
It is important that long-term investment objectives are met and are not subject to short-term distortion, he said.
While equities will remain a significant part of the portfolio, Murray said the long-term investment horizon of the fund will allow it to invest in illiquid assets such as private equity.
"We will be looking to partner with private equity managers who have a long-term history in the market," Murray said.
Murray said the problem with financing infrastructure projects is about planning, not funding.
There is plenty of money around, but the proper planning of infrastructure projects is needed if these projects are to attract investment, he said.
He added that funds from the sale of Telstra are better managed by an independent commercial board, rather than a government that is constrained by regulatory issues.
