The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Australia’s Future Fund gives first clue to sovereign wealth resilience through 2020

Diversification has insulated Australia’s sovereign wealth fund through a difficult year.

australia flag_960.jpg

The Australian Open in the tennis, the Australian Grand Prix in the Formula One; Covid notwithstanding, Australia has a habit of providing the curtain-raiser to a new calendar year.

And so it is with sovereign wealth funds, with the country’s Future Fund the first notable institution to provide a transparent snapshot of exactly what happened in 2020.

The A$171 billion ($132 billion) fund – or A$218 billion, including all of the six mandates that are managed by the same board and team – can be pleased with its performance in a difficult year. Its one-year return, embracing the market shocks that started in March, was positive at 1.7%, meaning it made back everything it lost from the impact of the pandemic.

That perhaps looks modest, relative to the stock market bounce that characterized the later part of 2020.

However, sovereign funds much prefer to look at the long term, and in that respect the fund looks stellar: a 10-year return of 9% per year, against a target of 6.2%. Of that A$171 billion, A$110 billion has come from investment returns. It hasn’t received any capital contributions since the A$60.5 billion that was used to establish it.

Let’s

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree