Managed Funds Govt Futures Fund

Actually - the money (billions) won't be put into the market this week ... they've only just received their mandate ... they need to hire staff, get an information system in place, put in internal business controls, and finalise their policies and procedures ... and THEN they'll start putting money into the market. In the meantime, it's sitting in cash at the Reserve Bank.

Interesting interview with the head of the fund on Inside Business yesterday.

They have to be careful not to affect the bond market too much - they have instructions to not overly reduce liquidity in that market. However, a comment was made that they expect the fund to be around $50b at some point, but when compared to an $800b equities market, they still don't think they will have a huge influence over the market ... although they will still have to be careful when considering the size of individual trades or holdings.