Australia’s Future Fund reports 9.3% annual return

Australia’s Future Fund has reported an annual return of 9.3 percent for the fiscal year ended June 30. The fund’s investment portfolio now stands at A$145.8 billion ($105 billion).

The pension fund also delivered a return of 8.7 percent p.a. over the past 10 years against a target benchmark return of 6.6 percent p.a. With the reported returns, Future Fund exceeded its benchmark return across all time periods. Future Fund now invests A$175 billion ($126 billion) across five public asset funds.

During the fiscal year, Future Fund slightly increased its level of risk, balancing its perspective on the more positive near-term outlook with the longer-term risks that remain, said Hon Peter Costello AC, chair of the Future Fund Board of Guardians.

David Neal, CEO, added, “In the current environment, we retain high levels of portfolio flexibility to both withstand — and potentially take advantage of — any market dislocations that might arise. We are particularly attracted to investment strategies that are uncorrelated to equity returns, and that are focused on genuine innovation and value creation.”