The Future Fund has sold $302 million worth of Telstra shares at an average price of $2.66.
The sale of 113.6 million shares in Australia's largest telecommunications company was conducted between 29 September and 19 October, the Future Fund said.
The Future Fund said the reduction was part of the sovereign wealth fund's long-stated objective of rebalancing the portfolio by reducing its holding in Telstra in an orderly manner in the medium term.
"The [Future Fund board of guardians] continually assesses its overall portfolio and took the view that conditions were appropriate for it to reduce its overweight Telstra holding by selling on-market," the Future Fund said.
"The sell-down reduces the board's holding in Telstra from 10.9 per cent of the company to 10 per cent.
"Proceeds from the sale will be integrated into the broader portfolio."
Telstra's shares hit a record low of $2.60 on 5 October.
The company's net profit after tax declined 4.7 per cent to $3.9 billion for the 2010 financial year.
