Future Fund, Melbourne, returned 12.2% on its portfolio in 2024, bringing its total assets to A$237.9 billion ($148.2 billion) as of Dec. 31, the sovereign wealth fund said on Feb. 5.
During the year, the fund increased its allocation to developed market listed equities, infrastructure and timberland, while slashing its cash allocation and reducing exposure to private equity, real estate, credit and other alternatives such as hedge funds.
Allocations to developed market global equities increased to 24.7% as of Dec. 31 from 17.8% in 2023, and Australian equities rose to 10.4% of the portfolio from 9.6% a year earlier. Emerging market equities were reduced to 5.8% from 6.2%.
Infrastructure and timberland assets rose slightly to 10% from 9.7%.
Other private assets were reduced across the board. Private equity was cut to 13.9% from 15.1%, property to 4.7% from 6.4%, and alternatives, which include hedge funds, dipped to 14.7% from 15.5% of the portfolio.
Exposure to credit was also reduced to 9.7% from 10.7%, and cash made up 5.9% of total assets, down from 9% in 2023. The fund noted in its update that figures may be rounded.
The result brought Future Fund’s 10-year return to 8.1%, beating its 6.8% target return, with a volatility of 4.8%.
One-year volatility for 2024 also fell to 3.5% from 4.3% in 2023.
