Foreword from the Chair
The establishment of the Future Fund in 2006 was an important event in Australia’s economic history.
After the Commonwealth Government was able to retire net debt, it set aside money in an asset fund to prepare for challenges of the future, challenges like the ageing of the population.
It was a commitment from one generation to help defray the costs falling on future ones.
The Future Fund is Australia’s sovereign wealth fund. It invests for the benefit of future generations of Australians. This book tells the story of the Future Fund’s creation, its governance and its investment strategy and performance.
The $204 billion Future Fund has performed strongly. It has returned 10.8% per annum over the last 10 years and earned more than $143 billion on the original $60.5 billion in seed capital contributed by Government.
Reflecting this success, the Future Fund Board of Guardians and the Future Fund Management Agency have been entrusted with the management of five additional funds. Today those funds are collectively valued at over $48 billion.
With the Future Fund we are investing for the benefit of future generations of Australians. With the other Funds, we are investing to support medical research, drought and emergency response, farming communities, important initiatives in the Indigenous community and the National Disability Insurance Scheme.
Together, the Board and the Agency manage over a quarter of a trillion dollars on behalf of the Commonwealth Government. We are the Government’s single largest financial asset.
All the capital is managed by the Board and Agency on behalf of the Australian Government and through it the Australian people.
The Board of Guardians is committed to maintaining the organisation as a high performing, respected and independent investment institution, a vital part of Australia’s public finances and a globally respected sovereign wealth fund.
Understanding why the Future Fund was created and how it has navigated the challenges of the last 15 years is important to understand how the organisation operates today and how it shapes our future.
We take our responsibility as Australia’s sovereign wealth fund very seriously. We have always stewarded each Fund entrusted to us with diligence and great care on behalf of the people of Australia. We will continue to focus on our purpose of investing for the benefit of future generations of Australians over the years to come.