Future Fund chief steps down

Future Fund chief executive Raphael Arndt is stepping down after close to two decades with the sovereign wealth fund, six of which he served in the top spot.

Future Fund chair Greg Combet said Arndt informed the board of his intention to leave the organisation and return to the private sector.

Arndt has been the longest serving chief executive in the 20-year history of the Future Fund. Prior to his current role Arndt was chief investment officer for six years.

Arndt will continue in his role as chief executive through to the end of 2026 to support a smooth transition as the board considers the appointment of his successor.

Arndt also currently serves on the board of Australia Pacific Airports Corporation, operator of Melbourne and Launceston airports, representing Future Fund.

The board said, as chief executive Arndt has overseen a period of significant growth and transformation at the Future Fund.

He led the organisation's response to a rapidly evolving global investment landscape, driving advancements in data, technology and investment capabilities that strengthened the fund's resilience and enhanced its ability to capture opportunities in complex global markets, Future Fund said.

"Under his leadership as chief executive the Future Fund has delivered strong long-term returns above its benchmark and increased total funds under management across the funds overseen by the board from $205 billion to $356 billion," Future Fund said.

"During Dr Arndt's tenure the fund has also developed a high-performance, collaborative culture which is renowned globally."

Combet said Arndt has been an "outstanding leader" during his tenure as chief executive.

"Australia is better off for his contribution to the Future Fund. He leaves the fund well positioned to continue strong investment performance in the future," Combet said.

Speaking on his decision to step down, Arndt added: "I am proud to have served as chief executive of the Future Fund. The fund is an important Australian institution, and I am confident it will continue to play a vital role for decades to come. All Australians are better off as a result.

"After six years as chief executive and having delivered two strategic plans and excellent investment results now is the right time for me to move into a new chapter of my working life.

"I leave the Future Fund with a highly capable leadership team that is supported by a strong board."

His departure comes after Arndt's leadership was questioned during a period of staff turnover.

In May Arndt responded to the staff exits while speaking at a Senate Estimates hearing, saying the turnover rate for the fund was at around 6%, and not at a "worrying level".

"We tend to have people who join, stay for some period, develop their career and then go off, very often to other private sector roles," he said at the time.

"We see that as part of a natural evolution of highly skilled investment people who choose to work in the public service for a period of their career."