Australian policy regulators have been urged to devise and implement fiscal plans that will help anchor the country as it glides and cushions itself on the impact brought about by the global economic slowdown.

This, as the Australian Future Fund announced Friday that third quarter performance results have not been good in spite cutting its share holdings and hiking cash and hedge fund distributions. For the September quarter, the Future Fund revealed suffering a 2.9 per cent slash, cutting the value of its assets by more than $2 billion from $75.39 billion to $73.18 billion.

Created by the Howard government to cover the superannuation liabilities of public servants, the Future Fund has actually lessened its exposure to Australian equities, from 11.1 per cent of its assets at June 30, to 10.6 per cent at September 30. It likewise cut from 26.3 per cent to 20.9 per cent its global equities holdings.

David Murray, chairman of the Future Fund Board of Guardian, attributed the quarter's dismal performance to the global uncertainty as he urged regulators the country needs to look at immediate reforms to avoid future losses.

"There's an urgent need to act on productivity, there's an urgent need to calm the IR system down, and there's an urgent need to reduce spending at the public level," Murray said in The Australian, noting that the world could expect uncertainty to continue in the financial markets as the global economy undergoes "significant structural adjustments over years to come."

Murray said the board will continue to focus on building a diverse portfolio comprising assets capable of generating strong returns to ensure the stability and performance of the Future Fund.

Notwithstanding the third quarter's fall, the Future Fund has generated a steady return of at least 4.4 per cent per year since the first contribution in May 2006.

The Future Fund's board of guardians also remarked it is still somehow satisfied as to how the fund performed compared with the Australian and global equity markets that fell by about 13 or 14 per cent.