The Future Fund has boosted the value of its investments to almost $98 billion on the back of stronger global and domestic financial markets.
The fund, set up in 2006 to pay for the future superannuation liabilities of public servants, returned 1.1 per cent on its portfolio in the March quarter and 9.8 per cent in the year to March 31 to stand at $97.6 billion.
Chief investment officer David Neal said the portfolio remained well diversified, with more than a third of its money invested in local and offshore equity markets.
“We are conscious that while recent rates of return have been strong, sustainable future returns need to be underpinned by improving economic growth,” he said in a statement on Tuesday. Since being set up with an initial $60.5 billion, the fund has grown at an average of 6.8 per cent per annum, shy of its long-term target of 7.2 per cent.