The Future Fund, Australia’s sovereign wealth fund, has logged –1.2 percent of returns for the year ending June 30. The fund had a 10-year return of 9.7 percent per year, against a target of 6.6 percent per year.
The portfolio successfully navigated market falls and clocked A$242 billion ($166 billion) of total funds under management.
“In this environment, it is more important than ever that the board remains sharply focused on its long-term objective to maximize risk-adjusted returns while taking acceptable but not excessive levels of risk.” said Raphael Arndt, CEO of the Future Fund. “Last year we commenced a three-year program of repositioning the Future Fund portfolio. This will adjust for a climate of higher inflation, increased volatility and lower returns. The portfolio has done well in the context of market weakness and while investment returns face many headwinds, we are well positioned to identify and access attractive new investment opportunities.
