November 2021
AAM Magazine
November 2021
Back to news

Australis’s Future Fund investment return rebounds

Future Fund
By Hui Ching-hoo   
October 28, 2021

Australia’s Future Fund’s investment return rebounded 22.3% in the 12 months to September from a 1.8% loss in the same period last year as global markets recovered from the coronavirus crisis.

The return was more than three times higher than the 7.1% target, and translates into an annualised return of 8.3% since the sovereign wealth fund was established in 2006, Future Fund says in a statement on October 25.

Assets under management as of September 30 was A$199 billion (US$149.9 billion), up from A$162.8 billion a year ago.

Total assets including six other government funds overseen by the wealth fund’s investment team rose to A$248 billion from A$210 billion in September 2020.

“The global economic recovery has continued although the dividend from re-opening is beginning to fade,” Peter Costello, chair of the Future Fund Board of Guardians, says in the statement. “While supply chain disruptions are a headwind, global economic activity is supported by strong consumer demand and the continuation of supportive fiscal and monetary policy settings.”

Chief Executive Officer Raphael Arndt adds that the wealth fund increased its exposure to infrastructure assets in September as equity markets fell.

“More broadly we continue our work to position the investment programme and our organisation for the long-term,” he says.