Australia’s Future Fund reported a 7.9% investment return in the 12 months to March, down from 8.3% in the same period a year ago, with officials describing it as a “pleasing” result driven by “strong contributions” from investments in alternatives, debt and infrastructure.
The return boosted the Future Fund’s value by A$17.8 billion (US$11.54 billion) to A$240.8 billion as of end-March, says Raphael Arndt, chief executive officer of the sovereign wealth fund.
“This was a strong result that reflects the work we have been doing for the past four years to ensure the portfolio is resilient and flexible to a range of scenarios,” Arndt says in a statement on May 6.
According to Ben Samild, the wealth fund’s chief investment officer, it was “a pleasing result given the increasingly difficult market conditions”.
“Over the past 12 months, there were particularly strong contributions to performance from the alternatives, credit, and infrastructure and timberland asset classes, highlighting the resilience and diversification of the portfolio,” he says. “Returns also benefitted from changes to our currency mix and exposure to commodities including gold.”
The Future Fund’s ten-year annualised return as of March 2025 was 7.5%, beating its 6.9% target.