NT News

Future Fund hits $200bn but potential risks ahead

- CLIONA O’DOWD

THE Future Fund’s assets have smashed through the $200bn barrier for the first time as it delivered record returns, but chairman Peter Costello warned on risks ahead with inflation and China.

Australia’s wealth fund saw its assets rise to $196.8bn over the 2021 financial year after it notched up a 22.2 per cent investment gain. In the weeks since, further investment returns have pushed its funds under management to “around $200bn”, the former treasurer (inset) said.

He warned returns would be harder to achieve amid shifts in the investment environmen­t created by the Covid-19 pandemic. “Inflation is the central issue for financial investors at the moment,” Mr Costello said.

He also said the fund had dialled down its exposure to China given the current trade tensions. “We just think with the difficulty of the situation (between Australia and China) that we have to be careful with sovereign money,” he said.

 ??  ??

Newspapers in English

Newspapers from Australia