Future Fund now worth $238 billion after double-digit 2024 returns

The 10-year return has been 8.1% per annum, compared to a target of 6.8%. The target for 2024 was 6.4%.

What they said: “We have focused on ensuring we are equipped to navigate these changes to the investment environment including the resurgence of geopolitical risks,” Future Fund CEO Raphael Arndt said.

“In November the government updated the investment mandate for the Future Fund to require the board to have regard to national priorities. The Government has also deferred the date at which it may draw on the Future Fund from 2026-27 until at least 2032-33. This provides the foundation for the Future Fund to become an enduring institution and to continue to invest for the long term.”

Future Fund chief investment officer Ben Samild said fears of a US and global economic downturn due to higher rates “were not realised”.

“Inflation has moderated and economic growth, trade, employment, wages and corporate balance sheets remain in good shape, underpinning another strong year for the US sharemarket,” Samild said.

“These conditions provided lots of opportunities for active return generation and the Future Fund benefitted from increasing its allocation to international equities. Alternatives, credit and infrastructure all made positive contributions, and returns were helped by the decline in the Australian dollar, which increased the value of offshore assets.

“The portfolio is now constructed to be more resilient to inflationary pressures and more responsive to the fast-changing world while generating attractive long-term returns.”