Australia’s Future Fund invests in different ventures for the benefit of future generations and is the country’s single-largest financial asset.
This $225 billion taxpayer-owned juggernaut has a fascinating investment portfolio that ranges from traditional assets to some eyebrow-raising gambles.
The Future Fund has made wild bets, from cryptocurrencies to space debris removal. Read on as we explore five of the boldest investments in its portfolio.
Coinbase Global
Cryptocurrencies have become a mainstay in business dealings over the past few years. They have quickly grown in popularity, becoming an excellent store of value.
Over 25,000 cryptocurrencies have been developed since Satoshi Nakamoto presented the concept of cryptographically secure blockchain technology.
The Future Fund has embraced cryptocurrencies and their volatility by investing in Coinbase Global. The American publicly traded company is one of the leading cryptocurrency exchanges in the world.
Coinbase allows users to trade crypto assets such as Bitcoin, Ethereum, Dogecoin, USDT and more. The Fund has purchased 14,091 units of Coinbase worth approximately $4.7 million.
While many people may point to crypto’s wild price swings, supporters believe it will revolutionise banking and finance, improving the speed and efficiency of transactions.
The Future Fund is one of the big believers in digital currencies and their long-term potential despite concerns about regulation and the environmental impact of crypto mining.
Flutter Entertainment
Gambling is big business worldwide and the Fund is bidding to capitalise by taking a chunky stake in online betting powerhouse Flutter Entertainment.
Flutter owns high-profile betting brands such as Betfair, Paddy Power and PokerStars and is responsible for some of the new horse racing betting sites that have gripped Australian bettors.
The Fund acquired 10,527 units worth $2.88 million, backing the gaming behemoth to maintain their profitability as they spread their wings into lucrative new markets.
Flutter is bidding to crack the commercially mouth-watering United States market, where online gambling funded by crypto is on the rise after changes to the legislation.
The company has been listed on the New York Stock Exchange. Their global reach and diverse revenue streams present a lucrative opportunity that is hard to ignore.
Davide-Campari Milano
Davide-Campari Milano caters to Europe’s sophisticated drinking culture with brands such as Campari, Aperol and Wild Turkey.
Australia’s Fund holds 38,918 units of Davide-Campari Milano valued at $551,000, tapping into the world of premium alcoholic beverages.
Even though investing in liquor is not as wild as cryptocurrencies and gambling, it is a bet on the timeless global demand for quality spirits.
With a market cap of $11.7 billion and having operated for over 100 years, the company has fought off economic downturns, innovating with new flavours and cocktails.
Davide-Campari Milano has a steady growth potential, and Australia’s move to invest in the brand could prove to be a masterstroke.
Astroscale Holdings
Several satellites are orbiting the Earth. They sometimes jam and the damage can be dangerous. The Fund has invested in a company with a mission to clear the litter in space.
Taking its portfolio out of this world, the Future Fund has ventured into space with Astroscale Holdings – a Japanese company specialising in clearing orbital debris.
The Fund has purchased around 1,600 units ($14,685) of stock in the Tokyo-headquartered company.
The space sweepers address the growing threat of space debris. Their mission is to secure a safe and sustainable development of space for the future.
With Australia significantly more interested in the space economy, this move could be a ploy to tap into Astroscale’s space knowledge.
WEBTOON & Bookoff Group Holdings
The Fund also released around $2,871 from their coffers to punt on 84 units of WEBTOON Entertainment.
WEBTOON democratises the creation of comic books, creating a platform for anyone to become a creator regardless of their background or professional training.
The move may come as a surprise to investment experts. Comic books are traditionally not the most rewarding stock options, but Australia clearly sees some potential in the company.
They also made a small bet on second-hand book store company Bookoff Group. This firm sells used books, CDs, DVDs and games.
Bookoff is reportedly also venturing into used apparel, sporting goods, jewellery and other household items. Non-fungible tokens could be a future product in their portfolio.
The Australian Fund will be watching keenly, hoping that this move may turn into a big boon for their ambitious investment.