Future Fund gains nearly $2bn in March quarter despite market volatility

Future Fund has reported positive returns across all its portfolios, adding some $28.3 billion in 12 months.

In the March quarter, Future Fund returned 0.6% to $269.1 billion, almost a $2 billion increase from the end of 2025.

Other funds managed by the Board of Guardians also produced similar returns over the period, including the Medical Research Future Fund (1%); Aboriginal and Torres Strait Islander Land and Sea Future Fund (0.9%); Future Drought Fund (0.9%); Disaster Ready Fund (0.8%); and Housing Australia Future Fund (0.8%).

Meanwhile, the DisabilityCare Australia Fund set a benchmark return of the Australian three-month bank bill swap rate +0.3%, calculated on a rolling 12-month basis, Future Fund said.

In all, total funds under management (FUM) have grown to $337.2 billion as at March end.

Commenting, Future Fund chair Greg Combet said the funds continues to perform despite geopolitical unrest and market upheaval.

"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% during that period," he said.

"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."

Future Fund chief executive Raphael Arndt echoed Combet's statement, stating the performance is a result of its long-term commitment.

"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," Arndt said.

"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 also welcomed the new chief investment officer Richard Brandweiner, who will commence July 1.

"Richard is an experienced investor and executive and has significant experience in leading investment teams to achieve their mandates. We look forward to welcoming him to the Future Fund," Arndt said.

It follows the group's recent review of its staffing levels and expenditure, in an aim to cut costs by $10 to $15 million in the next financial year. The fund saw three members of the investment team depart in March, and is assessing the viability of up to 10 roles across investment and non-investment teams to reflect business needs and priorities.