Statement by David Neal, Chief Executive Officer of the Future Fund to the Senate Finance and Public Administration Committee

Last week we released our regular update on the performance and positioning of the funds for which the Board is responsible.

We continue to perform strongly against our objective to strengthen the Government’s long-term financial position.

Up to 31 December 2018 the Future Fund delivered a 10-year return of 9.7% pa against a target return of 6.6% pa. Further, the Fund exceeded its target return over all long-term time horizons.  These returns have been achieved while carefully managing risk.

The Future Fund also produced a strong return of 5.8% during 2018 despite market falls in the second half of the year, highlighting the careful portfolio construction and disciplined management of risk.

The Medical Research Future Fund, DisabilityCare Australia Fund and Nation-building Funds are performing in line with their respective investment mandates since inception.

On 1 February 2019 the Board of Guardians took on management of the Aboriginal and Torres Strait Islander Land and Sea Future Fund (ATSILS Fund).  The ATSILS Fund was established with a capital contribution of $2bn transferred from the Aboriginal and Torres Strait Islander Land Account.

Finally, at the end of last year we were delighted to welcome a new member of the Future Fund Board of Guardians, John Fraser, who brings a wealth of experience that will be invaluable to the Fund.

I welcome your questions.