The Future Fund has delivered an 11.7 per cent return over the 12 months to 31 March 2026, adding $28.3 billion to its value and lifting total assets to a record $269.1 billion, according to its latest portfolio update.
On a quarterly basis, it posted a return of 0.6 per cent for the March quarter, with asset allocation remaining diversified across global equities, private equity, infrastructure, alternatives and credit.
Over the longer term, the sovereign wealth fund reported a 10-year return of 8.6 per cent per annum, comfortably exceeding its mandate target of 7.1 per cent per annum, while total investment returns since inception have reached $208.5 billion.
Future Fund chair Greg Combet said the result reflected the fund’s ability to deliver consistent outcomes despite a challenging global backdrop.
“The result shows that in an environment of geopolitical unrest and market upheaval, the Board continues to deliver over the long term.
“Over the last 12 months, as markets navigated Liberation Day and more recently conflict in the Middle East, we have made sure the Fund has been well positioned to continue delivering strong returns, with the Future Fund growing by 11.7 per cent during that period.
“Our work on the New Investment Order, which we first published in 2021, has helped grow and protect the position of the country’s single-largest financial asset, which since being established twenty years ago, has grown to now be worth more than $269 billion.
“We continue to contribute to the nation by delivering strong financial returns over the long term, sharing investment insights and having regard to help address national priorities in housing, infrastructure and the energy transition.”
Chief executive Raphael Arndt said the fund’s positioning had helped cushion the impact of market volatility during the March quarter, when inflation concerns intensified amid disruption to global energy markets.
“The investment return of 11.7 per cent for the 12 months, adding $28.3 billion to the Future Fund, is a result that continues to add to our long-term performance, highlighted by a 10-year return of 8.6 per cent per annum, with both numbers well above our mandate target.
“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.”
Across the broader suite of funds managed by the Future Fund Board of Guardians, total funds under management rose to $337.2 billion, including the Medical Research Future Fund at $25.4 billion and the Housing Australia Future Fund at $11.5 billion.
The Medical Research Future Fund delivered an 8.7 per cent return over one year, while the Aboriginal and Torres Strait Islander Land and Sea Future Fund and the Future Drought Fund each returned 10.0 per cent over the same period, highlighting broadly strong performance across portfolios.
The DisabilityCare Australia Fund, which is invested in cash and deposits to minimise capital loss risk, returned 4.3 per cent over 12 months, slightly above its 4.1 per cent benchmark.
Arndt also confirmed the appointment of a new chief investment officer, noting that Richard Brandweiner will commence in the role from 1 July.
