Case Study: Future Fund
The Future Fund, as Australia’s sovereign wealth fund, has a clear mission - to invest for the benefit of future generations of Australians.
Established by the Australian Federal Government in May 2006 the Future Fund is a mechanism that strengthens the Commonwealth’s long-term financial position. Every dollar that we make is a dollar that adds to Australia’s wealth and contributes to its future.
Our investment approach centres on a “one team, one portfolio” philosophy. As an investment concept we seek not to optimise the outcome of each asset class portfolio in its own environment. Rather we seek to have each asset class contribute to an optimal total portfolio.
This philosophy in fact extends to all aspects of our organisation. We support our people to seek optimal solutions for the whole organisation, even if that is sub-optimal for their specific area. Building this mutual understanding requires constant effort and a consistent and persistent reinforcement of expectations for behaviour.
We are privileged in having access to the best investment thinkers in the world through interaction with peer and investment partners. By applying these insights and the data into our portfolio approach we believe is powerful and supports our pursuit of our mandate and higher risk adjusted returns.
How the team works together
‘One team one purpose’ has been a strong philosophy of the Future Fund since inception, it now forms one of our strategic pillars. In essence, it refers to our focus on the performance of the total portfolio rather than a single component, such as equities or property. It also acknowledges that the success of the Investment team is dependent on the support services that surround it and that collectively we are one team and our success lies in valuing each person’s contribution and working together to achieve common goals.
Investment returns have added over $80bn to the original $60.5bn contribution made by the government at the Fund’s establishment in 2008 with no further contributions
The Future Fund has achieved a return of 8.5% pa over the last 10 years against a target benchmark return of 6.7% pa.
- In addition to investing the assets of the Future Fund, our investment expertise is used to invest $25 billion on behalf of the Commonwealth through the Medical Research Future Fund, DisabilityCare Australia Fund and two Nation-building Funds.
About Future Fund
Number of employees:
144 (as at June 2017)
Locations of offices:
Key areas of impact your fund focuses on:
Global multi asset
Graduate job title, salary range and role requirements:
While the Future Fund doesn't currently offer an intern program, we are starting to accept interns with formal qualifications in finance as degree level. Salary range is around $60k - $80K depending on prior experience.
In addition, the Future Fund sponsors the Financial Management Association of Australia’s ‘FMAA’ Asset Management Case Competition with winners offered a one-week internship at the Future Fund. This competition is open to all undergraduate and honours students at the University of Melbourne and Monash University and strives to provide university students with exposure and opportunities in the asset management sector. The Future Fund’s support of the event helps the next generation of investors better understand what we do.