The 2024–25 year unfolded amid ongoing global turbulence and uncertainty, with a new US administration capturing international headlines, various armed conflicts occurring, globalisation retreating and a renewed pressure on climate consensus.
We responded to this volatile environment by repositioning the portfolio, investing in our people and strengthening areas of the organisation to embrace innovative ways of working.
Our joined-up, whole-of-portfolio approach to investing enables us to remain agile in a changing investment landscape, drawing on insights from our globally connected teams and external managers.
A key milestone for us arrived in November 2024, when the Australian Government announced it would postpone Future Fund drawdowns until at least 2032–33. This reaffirmed the Fund’s status as an enduring national asset and, crucially, will enable us to invest with greater ambition, longer horizons and deeper alignment with national priorities.
A revised Investment Mandate was also issued in November and in line with it, we continued to grow our investments in significant Australian infrastructure assets including CDC and Transgrid.
This year we started evolving our responsible investment capabilities with an elevated focus on climate risks and opportunities. Foundational to this was a new Responsible Investment Belief and Policy that formally integrates environmental, social, and governance (ESG) and climate considerations across all investment decisions.
Over the year, we also made more than $90 billion in portfolio adjustments, with changes made in every asset class.
These actions have held us in good stead, with the Future Fund delivering a strong 12.2% annual return and adding $27.4 billion in value to Australia’s financial future, and $191.8 billion since inception. This performance reflects not only the changes we made but also our robust governance and collaborative culture.
We welcomed a new Guardian to the Board, Mr James Craig, and farewelled Mr Michael Wachtel who completed his nine-year tenure as a Guardian in April. Three new Senior Leadership Team members were appointed and 28 staff were promoted or advanced.
Meanwhile, the Future Fund Academy continued supporting the development of our people, while investments in new technology including the introduction of the Agency’s own proprietary AI digital collaboration tool, LUMi, enhanced how we access and use information to make more informed investment decisions.
We are proud of our achievements this year and remain steadfastly focused on our purpose: investing for the benefit of future generations of Australians.
