Australia's Future Fund reported a 1.4% return during the fourth quarter on strong equity market performance in the final three months of the year.
The portfolio ended the year at A$168 billion ($117.5 billion), up 14.3% from the year before and 9.9%, annualized, over the past 10 years.
"The Future Fund is performing strongly against its objective," Peter Costello, the chair of the fund's board of guardians, said in a news release. "Equity markets performed strongly in the last quarter, supported by easy monetary policy. It is important to assess which asset values are supported by earnings as opposed to those supported merely by cheap money."
Mr. Costello added: "Looking forward, a number of risks remain. Global debt levels and demographic pressures will shape economies and markets over the medium to long term. We maintain our long-held view that prospective returns will be lower than recent returns."
Global developed markets equities made up 19% of the fund, down from 19.2% from the quarter ended Sept. 30. Private equity was 14.9% (vs. 15.8% as of Sept. 30). Cash, 13.7% (vs 11.4%); alternatives, 13.4% (vs. 13.7%); emerging markets equities, 10.2% (vs. 10%); debt securities, 8.6% (vs. 9%); infrastructure and timberland, 7% (vs. 7.1%); Australian equities, 6.8% (vs. 7.1%); and property, 6.3% (vs. 6.7%).