Future Fund CEO steps down after six years

Raphael Arndt, the chief executive of the Future Fund, has announced he will step down at the end of 2026. This departure concludes a six-year term as the head of the sovereign wealth fund and nearly two decades of total service to the organization.

The board is currently evaluating candidates to fill the vacancy, though Arndt will remain in his position for the remainder of the year. He holds the record for the longest-serving chief executive in the institution’s 20-year history, having previously worked as the chief investment officer and as the head of infrastructure and timberland.

Greg Combet, the chair of the organization, credited the outgoing executive with guiding the fund through a period of significant growth. Under this leadership, total funds under management across the various portfolios increased from 205 billion to 356 billion dollars.

The transition marks a change for a body tasked with managing a substantial portion of the nation’s financial assets. Leadership changes often signal a modification in long-term strategy, as new executives typically bring fresh mandates that can alter how a fund balances risk and domestic investment targets against global market exposure.

Arndt intends to move into the private sector. He feels the timing is appropriate, as he has overseen the delivery of two major strategic plans during his tenure.

The announcement coincided with the release of the fund’s annual portfolio update for the year ending 30 June 2026. The institution reported a 14.8 per cent annual return, which added 37.4 billion dollars to its total value. This performance brought the primary fund to a record 289.7 billion dollars.

Other performance metrics include a 9.0 per cent annual return over the last 10 years, exceeding the 7.1 per cent mandate target. The organization also saw a 12.0 per cent annual return over the last three years, and a 7.7 per cent return for the June quarter alone.

The chief executive attributed these results to specific themes identified under the organization’s New Investment Order. He cited commodities exposure, geographic diversification, and relatively low bond holdings as primary drivers of the year’s success. Richard Brandweiner, the chief investment officer, added that strength in global equity markets—specifically in Japan and emerging markets—also provided a boost during a year marked by geopolitical volatility.

The portfolio remains heavily weighted toward developed-market global equities, which accounted for 29.1 per cent of total holdings as of the end of the fiscal period. Alternatives made up 14.9 per cent, while private equity represented 12.1 per cent.

The fund has directed 3.5 billion dollars into new investments covering domestic housing, infrastructure, and the energy transition. These commitments bring total domestic infrastructure holdings to nearly 20 billion dollars. The institution continues to monitor these allocations as part of a long-term plan to ensure stability and growth for the sovereign wealth fund throughout the coming decade.