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.