Future Fund returns hit $200b since inception
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The news: The federal government’s Future Fund has passed more than $200 billion in returns since its inception in May 2006, with total asset value totalling $261.1 billion at the end of the September quarter 2025.
The numbers: The fund said its return over the 12 months to the end of September hit 13.7%, above the mandate target of 7.3% per annum.
Since inception, the fund has achieved a return of 8% per annum. Over the last three years the fund delivered a 10.6% return per annum.
Global equities in developed markets make up $69.7 billion or 26.7% of the Future Fund Portfolio while Australian equities make up $28.5 billion or 10.9%.
Other significant contributors include alternatives (14.6%), Private Equity (12.7%), Infrastructure & Timber (11%) and Credit (8.6%).
Across all the funds managed by the Future Fund board of guardians, total funds managed hit $327.9 billion.
This also includes the Medical Research Future Fund, the Aboriginal and Torres Strait Island Land and Sea Future Fund, Future Drought Fund, Disaster Ready Fund, Housing Australia Future Fund and the DisabilityCare Australia Fund
The context: The Future Fund was established with an initial endowment of $60.5 billion.
Future Fund chief executive Raphael Arndt said that over the past 12 months “investment markets performed strongly and there were positive contributions from listed equities, alternatives and infrastructure and timberland".
He flagged that the world is continuing to “move to a more multipolar world marked by geostrategic competition, national capability building and technological ambition”, which he believes suggests higher nominal growth and inflation.
This is consistent with the fund’s “New Investment Order thinking since 2021” which has driven changes in the portfolio. However, investment returns are expected to be dispersed by geography and industry, and there is the potential for longer-term productivity gains from developments in AI.
What they said: Commenting on the $200 billion milestone, Arndt said: “This is a great achievement and reflects the work done at the Future Fund both over its lifetime but also more recently to understand the changes to investment markets that we continue to see and to adjust our portfolio accordingly.”
The source: Future Fund media release
