Latest news with #RaphaelArndt
AU Financial Review
06-05-2025
- Business
- AU Financial Review
‘Pretty loud warning bell': Future Fund on alert for US dollar risks
Future Fund chief executive Raphael Arndt has warned the Trump administration's protectionist policies threaten the US dollar's status as the dominant global currency and could force investors to reduce their holdings. Arndt was speaking on a panel at the Milken Global Conference in Los Angeles, which has drawn global investors and business luminaries including the world's richest man Elon Musk and media mogul Rupert Murdoch.
West Australian
06-05-2025
- Business
- West Australian
Future Fund beats 10-year target, swells to $241b
Australia's sovereign wealth fund has beaten its mandated 10-year target and grown its total funds under management to $307 billion. The Future Fund itself reached a record value of more than $240 billion by March 31, after securing 7.9 per cent returns for the year. 'This was a strong result that reflects the work we have been doing for the past four years to ensure the portfolio is resilient and flexible to a range of scenarios,' Future Fund chief executive Raphael Arndt said on Tuesday. By comparison, the S&P/ASX200 rose just over two per cent in the 12 months to April, or almost nine per cent in the 2024 calendar year, when the Future Fund improved by 12.2 per cent. 'Pleasingly returns have also increased the value of the other six funds managed by the Future Fund Board of Guardians by $4.9 billion to $66.8 billion while also providing $985.7 million in payments to support their intended programme priorities in the financial year to date,' Dr Arndt said. The Future Fund was established in 2006 by former federal Liberal treasurer Peter Costello after the sale of Telstra to strengthen the Commonwealth's financial position and cover the costs of burgeoning public sector pension payments. The Public Sector Superannuation scheme was closed to new members after June 30, 2005 and so-far, no money has been withdrawn from the Future Fund since its inception. Today, the fund manages several subsidiary funds including the Medical Research Future Fund, valued at $24 billion, the $10.8 billion Housing Australia Future Fund, the DisabilityCare Australia Fund, worth almost $20 billion and the $4.7 billion Disaster Ready Fund. Difficult market conditions elevated by recent US trade policy and geopolitical tensions would likely lead to higher bond yields and could stir up inflation. 'We are seeing consequential changes in geopolitical, economic and market environments at the moment and that is causing volatility and uncertainty for investors,' he said. 'These are the conditions for which the portfolio has been built over the past five years, and it has behaved to our expectations in recent months.' Chief investment officer Ben Samild was pleased by the result amid tough market conditions. 'Over the past 12 months there were particularly strong contributions to performance from the alternatives, credit, and infrastructure and timberland asset classes, highlighting the resilience and diversification of the portfolio,' Mr Samild said. 'Returns also benefited from changes to our currency mix and exposure to commodities, including gold.' The fund would continue to assess conditions as they changed to keep on track with its investment mandate, Mr Samild said.
Perth Now
06-05-2025
- Business
- Perth Now
Aussie shares slightly lower in choppy morning's trade
The Australian share market has edged lower in early trading, tracking with a down session on Wall Street, which snapped its nine-session win streak, its best in two decades. The local bourse broke its seven-session streak of wins on Monday. The S&P/ASX200 fell 7.6 points, or 0.11 per cent, to 8149.2, as the broader All Ordinaries lost 6.6 points, or 0.08 per cent, to 8367.7 "Following the US, Australian futures indicate our market may only fall 0.2 per cent today, not as bad as the S&P500's 0.6 per cent drop," Moomoo market analyst Jessica Amir said. "While investors may continue to take profits from risk-on assets such as banks following their cracking rebound, you'd expect this to continue ahead of Australian building approvals falling off a cliff." Dwelling approvals fell 8.8 per cent in March, according to data from the Australian Bureau of Statistics, significantly worse than a forecast 1.7 per cent drop. Local sectors were mixed, with six of 11 trading higher and financials down 0.5 per cent. All big four banks were in the red, with Westpac the worst performer for a second day in a row, down 1.9 per cent after posting a slip in first-half profits yesterday. Large cap miners were in the red, with BHP, Rio Tinto and Fortescue all down more than 0.7 per cent. Gold miners were back in the green and helping to limit materials sector losses, as risk-off investor sentiment pushed the precious metal up 2.5 per cent to $US3,380. Energy stocks rebounded 0.5 per cent after leading sector losses on Monday. Oil prices are still under pressure from planned output hikes from OPEC+. Brent crude futures are back above the $US60 level, to trade at $US60.91 a barrel. IT stocks were trading slightly higher, up 0.1 per cent, with NEXTDC surging 8.4 per cent to $13.72 after announcing it would boost capital expenditure to meet fresh data centre contracts. At the other end, WiseTech Global fell 2.2 per cent after acknowledging US tariff impacts could be negative for the logistics technology company. Australia's sovereign wealth fund, Future Fund, was warned recent market volatility and uncertainty could continue to push bond yields higher and rekindle inflation," chief executive Raphael Arndt said. ""We are seeing consequential changes in geopolitical, economic and market environments at the moment and that is causing volatility and uncertainty for investors," Dr Arndt said. "Our expectation is that these conditions will lead to higher inflation and bond yields for an extended period." The Australian dollar is buying 64.52 US cents, down from 64.69 US cents on Monday at 5pm.
