Future Fund Financials and Investment Performance

Future Fund Balances and Returns

The Future Fund Board of Guardians publicly discloses the Future Fund's asset allocation and investment returns in its quarterly portfolio updates [External Site].  The quarterly updates also include investment returns for the Nation-building Funds.

The latest quarterly portfolio update is summarised in the following table.

Quarterly Portfolio Update - 30 June 2016
Total Future Fund Balance ($A m) 122,792
One year (Per cent) 4.8
Annualised return since inception* (Per cent p.a.) 7.7

* Annualised return since inception on 5 May 2006, when the Fund received its initial seed capital.

The long-term benchmark return for the Future Fund is specified in the Future Fund Investment Mandate.  The mandate requires the Board to target a benchmark return of CPI plus 4.5 per cent to 5.5 per cent per annum over the long term.

The following table presents a history of the Future Fund's returns and balances since inception, along with Consumer Price Index statistics for comparative purposes.

Future Fund Annual Performance Results
Year Nominal Returns *
(Per cent p.a.)
(Per cent)
Benchmark (CPI +4.5) Total Balance of Fund as at 30 June
($A m)
2005-06** 6.0 4.0 8.5 18,163
2006-07 7.4 2.1 6.6 52,320
2007-08 1.5 4.5 9.0 64,181
2008-09 -5.1 1.5 6.0 61,040
2009-10 10.3 3.1 7.6 67,346
2010-11 12.0 3.6 8.1 75,393
2011-12 2.1 1.2 5.7 77,012
2012-13 15.4 2.4 6.9 88,889
2013-14 14.3 2.7 7.2 101,590
2014-15 15.4 1.5 6.0 117,222
2015-16 4.8 1.0 5.5 122,792

* Nominal returns to 2010-11 are inclusive of Telstra holdings.
** Annualised figure as first contribution was made on 5 May 2006.

For details on how the Future Fund earnings and costs are treated, please refer to the Budget treatment of Future Fund earnings and costs.

Transfers to the Future Fund

The following table provides a history of financial transfers to the Future Fund, with links to the associated determinations.  (Transfers to the Fund do not affect the overall financial position of Australian Government Budgets since the Government has merely exchanged one form of financial assets for another.)

Summary of Transfers
Date Source of Funds Amount
($ m)
5 May 2006 Initial Seed Capital 18,000 Future Fund (Crediting of initial Amount) Determination and Explanatory Statement 2006[External Site]
22 January 2007 2005-06 Budget Surplus and first instalment of Telstra 3 sale proceeds 18,639 Future Fund (Crediting of Additional Amounts) Determination and Explanatory Statement 2006[External Site]
16 February 2007 The remainder of the 2005-06 Budget Surplus 3,638 Future Fund (Crediting of Additional Amounts) Determination and Explanatory Statement 2007[External Site]
28 February 2007 2,104,657,933 Telstra shares 8,966
22 June 2007 Telstra 3 sale proceeds (prepayments of the second instalment received in the period February to April 2007) 151 Future Fund (Crediting of Additional Amounts) Determination and Explanatory Statement 2007 (No. 2)[External Site]
28 June 2007 21,894,459 Telstra shares 102*
24 August 2007 2006-07 Budget Surplus 7,000 Future Fund (Crediting of Additional Amounts) Determination and Explanatory Statement 2007 (No. 3)[External Site]
25 June 2008 Telstra 3 sale proceeds (second instalment receipts) 3,900 Future Fund (Crediting of Additional Amounts) Determination and Explanatory Statement 2008[External Site]
21 November 2008 35,361,956 Telstra shares 141*
Total Transfers   60,537  

*Telstra shares are valued as at the time of transfer.

Consolidated financial statements for the Future Fund are contained in the Future Fund's Annual Reports.

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Contact information on this page: Funds and Actuarial Branch

Last updated: 11 October 2016