Future Fund delivers annual return of 11.7%
Make us a preferred source
Make us a preferred source on Google
The news: The Future Fund has delivered a return of 11.7% over the 12 months to 31 March 2026.
The numbers: Over the 10 years, the federal government’s sovereign wealth fund returned 8.6%, ahead of its 7.1% mandate target.
Total funds managed by the board of guardians stood at $337.2 billion by 31 March.
The fund’s higher allocation was in global developed market equities (28.8%), alternatives (15.3%) and private equity (12.7%). Australian equities made up 10.7% of the fund’s assets.
The Medical Research Future Fund achieved an 8.7% return over the year, taking its value to $25.4 billion. The Housing Australia Future Fund returned 9.7% over the year to March, taking its value to $11.5 billion.
The context: In March, Future Fund chair Greg Combet warned the biggest challenge over the next five to 10 years would be managing geopolitical conflict risks.
What they said: Future Fund chief executive Raphael Arndt said: “While our focus is on long-term returns, our positioning has helped protect the fund over the quarter, with the value of the fund rising modestly, even as markets fell based on inflation concerns stemming from the closure of the Strait of Hormuz and the potential for a stagflationary global environment.”
“Over the year, risk markets were supportive but there was a significant change of sentiment in the March quarter. The portfolio result reflects the strong performance of risk markets and our neutral risk position, and the resilience measures we have built as set out in our discussion papers,” he said.
The source: Future Fund media release
