Australia Future Fund Tops A$252 Billion, Reduces US Exposure

Australia's sovereign wealth fund, the Future Fund, reached a valuation of A$252 billion ($166 billion) as of June 30, 2025, delivering a 12.2% return that doubled its government-mandated target of 6.1%. The fund has reduced its exposure to the U.S. market due to concerns over political uncertainty, regulatory changes, tariffs, and an unbalanced budget, while increasing investments in developed markets like Germany and Japan, which appear more attractive and economically stimulated. The Future Fund's portfolio includes A$65.13 billion in developed markets and A$27.2 billion in Australian equities, both increased from the previous year. Property investments were slightly reduced, and credit investments also decreased compared to the prior year. Future Fund CEO Raphael Arndt emphasized the strategic diversification to mitigate risks associated with the U.S. market and highlighted continental Europe and Japan as key growth areas. The fund's strong performance was supported by robust stock markets and private investments, with about a third of its portfolio allocated to global equities.