Australia’s Future Fund Hits A$252 Billion After Strong 12.2% Return

Australia’s sovereign wealth vehicle, the Future Fund, reported a sharp rise in value, reaching A$252 billion (US$166.2 billion) as of June 30, 2025. The increase was driven by stronger allocations to developed markets and equities, while property and credit exposure were scaled back.

The fund delivered a 12.2% return for the year, more than double its government-mandated target of 6.1%. Chief Executive Raphael Arndt said the strategy included taking on more “structural risk” to boost long-term growth, alongside increasing exposure to developed market currencies and commodities such as gold.

Developed markets remain the largest driver of growth. The Future Fund lifted investments in the sector to A$65.13 billion, representing a quarter of the total portfolio, compared to A$46.83 billion in 2024. Australian equities also rose to A$27.2 billion from A$23.1 billion, reflecting stronger performance in the domestic market.

At the same time, the fund reduced its exposure to property and credit. Real estate holdings fell from A$12 billion to A$11.1 billion, while credit investments declined to A$22.4 billion from A$24.82 billion.

The Future Fund’s performance underscores a strategic shift toward higher-return opportunities in developed markets while trimming areas facing economic headwinds. By doubling its target return, the fund highlighted its role as a resilient cornerstone of Australia’s financial security, ensuring future generations benefit from disciplined investment strategies and global market diversification.

With its latest update, the Future Fund reinforces its position among the world’s leading sovereign wealth funds, balancing growth ambitions with risk management as it adapts to shifting economic conditions.