Weapons makers and SpaceX in government's key investment fund portfolio
The federal government has quietly published the Future Fund's half-yearly report and it reveals a portfolio that includes weapons makers and SpaceX.
Australia's Future Fund, the nation's sovereign wealth fund, published its latest six-month investment report on Monday, showcasing its portfolio of investments. The fund has grown its initial $60 billion investment into $290 billion, managing an additional $66 billion across six smaller funds. The report reveals the stocks the fund bought and sold between December 31 and June 30, as well as the returns generated by its stock holdings in the first half of this year.
The Future Fund has profited significantly from its investments in the global semiconductor and chip industry. However, it has not undertaken a significant spending spree, selling down stakes in some companies as their share prices have risen sharply. For instance, the value of its holdings in SK Hynix and Micron Technology surged by 199% and 304%, respectively, even though the fund sold 74,000 shares in each company.
The table below shows the fund's holdings in nine specific semiconductor and chip companies, revealing a 73% increase in their value over the last six months. Among the so-called "Magnificent 7" stocks, the Fund's investment in Tesla, NVIDIA, Alphabet (Google), Microsoft, Meta Platforms, Apple, and Amazon declined in value by $1.4 billion in the first half of the year, reflecting both falling share prices and the fund's share sales.
The Fund sold shares in every one of these companies, except Microsoft, which saw a 24% increase in its value despite the purchase of 48,000 more shares. SpaceX, Elon Musk's aerospace company, was introduced to the Fund's portfolio this year, with the Fund purchasing 40,185 shares valued at $9.9 million following its IPO on June 12.
The Fund also invested in Palantir Technologies, a company involved in surveillance technology, but withdrew its support after facing pressure from activist group GetUp! and concerns about Palantir's role in US immigration crackdowns and global military software use. The Fund's investments in defense companies, including global weapons manufacturers and aerospace companies, continued to yield profits, with Thales and Elbit Systems' holdings experiencing substantial increases in value.
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