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Bank debt a feature for slow moving Future Fund

The the Future Fund, custodian of several years of federal budget surpluses, will provide $500 million of debt funding to ANZ, the Financial Review reported. The terms of this funding are not made clear in the report.That a significant investment fund (the Future Fund has about $58 billion under management) would invest in fixed interest-style instruments, including bank liabilities, is not unusual.What is unusual is how slowly the Fund is shifting out of cash, which still comprises two thirds of its portfolio. The fund had $2 billion invested in fixed interest at the end of April according to a summary of its portfolio posted at its website. There's another $15 billion invested in equities.Whether there's an additional twist to the Future Fund's investment in ANZ bank debt the Financial Review doesn't explain.

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