SYDNEY: Australia’s Future Fund posted a 12.2% return for 2024 as the sovereign wealth fund reaped the benefit of increasing positions in international equities.
The Future Fund’s assets climbed to a record A$238bil (US$149bil) after adding A$26bil last year, according to a statement yesterday.
Chief investment officer Ben Samild said the strength of the US economy helped deliver an “extremely pleasing result”.
“Inflation has moderated and economic growth, trade, employment, wages and corporate balance sheets remain in good shape, underpinning another strong year for the US share market,” Samild said.
“Alternatives, credit and infrastructure all made positive contributions, and returns were helped by the decline in the Australian dollar, which increased the value of offshore assets.”
The Future Fund’s other investments during 2024 included a stake in a toll road and student accommodation.
The Future Fund Board of Guardians manages a total of A$304.5bil across seven investment portfolios, including the sovereign wealth fund.
The 10-year return of 8.1% exceeds the target of 6.8% per annum, according to the statement.
In November, the government updated the Future Fund’s investment mandate, requiring it to invest more money in domestic housing, energy and infrastructure projects.
The government said it would also defer any withdrawals from the fund until at least 2032 to 2033, by which time it’s projected to be worth A$380bil. — Bloomberg
