“The cycle of rising interest rates to control inflation is not yet complete, creating the potential for recession in many advanced economies.
“The extent of further tightening and how markets and the economy will respond will be key questions for investors.”
Costello is also the chairman of Nine. Australian Financial Review.
As Treasurer, he established a fund in 2006 with a budget surplus and $60 billion in capital from the sale of Telstra to cover the retirement pension liabilities of civil servants and strengthen the government’s financial position.
defensive posture
Costello said the Future Fund’s defensive stance limited the sharp declines recorded in the stock market last year.
Future Fund results follow a positive quarter of 1.6% in the three months to 31 December 2022.
“Importantly, the fund showed positive growth in the second half of the calendar year/first half of the fiscal year,” Costello said.
“Over the last 10 years, the Future Fund has delivered an average annual return of 9.1% against our target of 6.7%.”
Future Fund Chief Executive Rafael Arndt said earlier this year in Sydney Jeremy Piper
The nearly $200 billion sovereign wealth fund is adjusting its investment process to an environment of sustained high inflation and heightened uncertainty. The death of traditional portfolio construction.
Recent portfolio changes include increased exposure to some commodities like gold, reduced holdings in equities, while seeking to reduce exposure to regulatory risk in certain infrastructure assets.
Rafael Arndt, CEO of Future Fund, said many of the tailwinds that have boosted investment returns in recent years have turned into headwinds, making it difficult for investors to generate returns in the coming years. Told.
“The portfolio continues to be positioned in the middle of the risk-setting range,” he said.
“However, over the past year we have made a significant shift towards investing that relies more on investor skill than market risk.”
