Report from
the Chair

Hi, I'm Greg Combet, Chairman of the Future Fund Board of Guardians.

This year, when you think about it globally, has really been quite extraordinary. Geopolitical conflict, the US administration creating great uncertainty – and volatility in investment markets. At the same time, we've seen persistent inflation, and of course the war in Iran. So, it's been quite tumultuous and a difficult one to navigate, and it's another reason why we're very proud of this year's performance. 

We've got a wonderful team of people at the Future Fund, I think as evidenced by the results, and I sincerely thank everyone for their contribution. Financial Year ‘26 has been a very successful one for the Future Fund. The Future Fund itself delivered a 14.8% return for the year, against the benchmark – or our target – of 8.0%, and over ten years, the return’s been 9.0% per annum versus the mandate target of 7.1%.

I think it's helpful to put these numbers sometimes in a bit of context, and the return this year of 14.8% has increased the value of the Future Fund by $37.4 billion, against the interest bill of the Australian Government for FY26, which was $25.2 billion. And I think by any reckoning, that’s a very successful year. 

So, of course, it's not just the Future Fund that we manage. We manage six other special purpose funds for the Australian Government, covering things like disability care or drought relief, and each of those funds also exceeded their target mandate for the year, and have exceeded them comfortably, so we're really proud of that result too. 

Well, this is also the 20th year of operation of the Future Fund, and during that time, of course, the fund has grown from $60 billion that was initially invested, and it now stands at around $290 billion. All of that's been delivered in investment returns, that growth. That's a remarkable achievement, that contributes strongly to the Government's balance sheet, and it's a very important asset, the most significant financial asset of the Australian Government, and therefore of the Australian people, and it provides stability, supports a AAA credit rating and is very valuable for the country. 

Well, of course, the Government asked us to consider, in our investment strategy, investing in three national priorities – without compromising our investment independence, and without compromising the search for appropriate, risk adjusted returns. But they asked us to consider investing in residential housing, infrastructure and the energy transition. And since late 2024, we've been doing that, and we've now committed $3.5 billion to those three parts of the economy, and it's another way in which the Future Fund is making a great contribution to the country. 

So, I think we've got a really solid Board with great diversity of skills and experience at the moment. This year we farewelled Patricia Cross, and I certainly thank her sincerely for her contribution, and we've welcomed Fiona Trafford-Walker, who's got 30 years of experience in advising institutional investors and large portfolios. And soon we're also to welcome Adam Tindall to the Board, and farewell Deborah Ralston, who's also made a great contribution over five years.

I don't think I'm giving away any surprises by observing that Raff, our CEO, who's announced his resignation at the end of the year, has made a wonderful contribution. He's a tremendously significant figure in developing the Future Fund to what it is today. He's been here almost 20 years and about six years of that as Chief Executive, and he made a great contribution to the country by virtue of what he's done here. And I wish him all the best for the future and thank him for his contribution.

I'm very optimistic about the future. When you think about things globally, in particular with the onset of artificial intelligence, and a new wave of technology that's going to transform economies and organisations, what's important in these circumstances, is that you've got a great team of people with a collaborative culture, people unafraid to speak up, thoughtful, inquisitive, innovative, thinking about how the world is changing and making sure that we can respond to it.

We've got a team of people like that, and that's why I'm really optimistic for the Future Fund.