Statement by David Neal, Chief Executive Officer of the Future Fund to the Senate Finance and Public Administration Committee
Additional Estimates, 27 February 2018, Parliament House, Canberra.
The Future Fund continues to perform strongly against its objective, which is to strengthen the Australian Government’s long-term financial position. The Fund now stands at $139bn, with investment returns adding over $78bn to the original contributions from government.
At 31 December 2017 the Fund has exceeded its target return over all long-term time horizons, generating returns of 11% pa and 8.1% pa over 5 and 10 year periods respectively. Importantly, it has delivered these returns while avoiding excessive levels of risk.
Looking at our other funds, the Medical Research Future Fund continues to perform well and at 31 December stood at $7bn.
The DisabilityCare Australia Fund and the Nation-building Funds have also performed in line with their risk and return objectives and collectively were worth $18bn at 31 December 2017. We continue to invest these funds in accordance with their low risk mandates.
In summary, the Future Fund Board of Guardians invests nearly $164bn across the five public asset funds for benefit of future generations of Australians.
At the end of last year we were also delighted to welcome a new member of the Future Fund Board of Guardians, Robert Priestley, who brings considerable experience in the financial services industry to the role. We were also pleased to be acknowledged by our industry with awards for both innovation and excellence in institutional investment.
I welcome your questions.