Future Fund returns 11% as portfolio reaches $290bn

Future Fund has delivered an 11% return over the year to September, adding $28.7 billion to its portfolio as the sovereign wealth fund navigates persistent inflation, geopolitical uncertainty and shifting global capital markets.

The fund's portfolio grew to $289.9 billion, with investment returns contributing $229.3 billion since its establishment. Its 10-year annualised return reached 8.8%, exceeding its mandated target of 7.2% per annum. Total funds managed by the Board of Guardians stood at $356.1 billion.

Future Fund chief investment officer Richard Brandweiner said the long-term results reflected the fund's ability to generate returns across different economic conditions.

"In the year to 30 September 2026, the Future Fund returned 11%, against a mandate target of 8.2% Over ten years, the fund returned 8.8%, against a target of 7.2% reflecting our focus on delivering strong long-term outcomes through a range of market environments and economic cycles," Brandweiner said.

He said quarterly performance was shaped by movements in Australian and global bond yields, as markets continued to price in inflation and higher real interest rates. Rate sensitive investments, including bonds and listed infrastructure, faced pressure, while commodity exposures helped offset some of the weakness.

"Diversification gives us multiple sources of return and resilience, enabling us to respond to changing conditions even when some positions detract in a particular quarter," Brandweiner said.

Future Fund chief executive Raphael Arndt said the portfolio remained well positioned despite an increasingly complex investment environment, shaped by geopolitical tensions, inflation and the rapid development of artificial intelligence.

"It is an environment that aligns with the New Investment Order thinking we first outlined in 2021: increasing geopolitical risk, populist government and deglobalisation and a world at an inflection point, characterised by greater uncertainty and a faster pace of change," Arndt said.

"It reinforces our focus on building a resilient, adaptable portfolio while remaining agile and responsive to our investment mission."

Arndt is due to step down from his role at Future Fund at the end of 2026, following a six-year tenure as chief executive, making him the longest serving chief executive in the 20-year history of the Future Fund.