Australia’s Future Fund delivers positive returns, warns of future volatility

Australia’s Future Fund has delivered positive returns despite market volatility over the past year and has exceeded its target returns across all long-term time horizons, according to a recent portfolio update.

Future Fund has a 10-year return of 10 percent per annum, against a target of 6.4 percent per annum. The fund has about A$12.7 billion ($9 billion) allocated to property, which composes 6.3 percent of the total portfolio, and A$16.5 billion ($11.6 billion) allocated to infrastructure and timberland, which makes up 8.2 percent of the portfolio.

“We have been carefully positioning the portfolio to navigate the challenging investment environment,” said Raphael Arndt, CEO of Future Fund. “Looking ahead, we expect returns will be harder to achieve, with ongoing fragility and disruption to global markets and economies combined with rising inflation continuing as key themes for some time to come. The portfolio is positioned moderately below a neutral risk sett