3 July 2020 
Phil ip Sweeney 
Email: xxxxxxxxxxxxxxxxxxxxxxxxx@xxxxxxxxxxx.xxx.xx 
 
 
BY EMAIL  
 
Dear Mr Sweeney 
Freedom of Information request 
I refer to your request received by the Future Fund Management Agency (“Agency”) by email 
on 27 June 2020, requesting access under the Freedom of Information Act 1982 (“FOI Act”) 
to documents as fol ows (the “Request”): 
I am seeking a copy of the audited financial statements for the Future Fund for 2018-
2019 along with a copy of the auditor's report. 
I am not seeking a copy of the Annual Report which is available on the Fund's Website 
Authorised decision-maker 
I am authorised by the principal officer of the Agency under section 23(1) of the FOI Act to 
make a decision on requests for access to documents.  My name and designation are set out 
below. This letter sets out my decision in relation to your request for access to information. 
Evidence on which my findings and decision are based  
In considering your Request, I relied on the fol owing information and documentary evidence: 
• 
your Request; 
• 
FOI Act; and 
• 
Guidelines issued by the Australian Information Commissioner under s  93A of the 
Freedom of Information Act 1982. 
Decision 
I have decided to grant access to the documents the subject of the Request, being:  
i) 
the audited financial statements of the Agency and the Future Fund Board of Guardians 
(together, the “Future Fund”) for the financial year ending 30 June 2019; and  
 
i ) 
the auditor’s report in respect of those audited financial statements.  
 
 
Level 42/120 Collins Street, Melbourne VIC 3000    Locked Bag 20010, Melbourne Vic 3001 
Telephone: +61 3 8656 6400      Facsimile +61 3 8656 6500 
A814812 
www.futurefund.gov.au 

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While noting you did not seek a copy of the Annual Report, the audited financial statements 
and auditor’s report are published within that document and I therefore provide it in fulfilment 
of your Request for those documents.  Please see pages 98 to 162 of the enclosed 2018-
2019 Annual Report,  which is also available on the Future Fund website at 
https://www.futurefund.gov.au/about-us/annual-reports.  
As the information is already published by the Agency and in the public domain, I find that no 
exemptions apply to the information the subject of the Request.  Accordingly, I confirm that 
the information the subject of your Request has been released in ful . 
The Agency is required by section 11C of the FOI Act to publish a disclosure log on its website 
detailing information released in response to a Freedom of Information access request, subject 
to certain exceptions.  Particulars of the document produced pursuant to the Request wil  be 
published by the Agency on the disclosure log on the Future Fund website. 
Reviews and Complaints 
For information regarding review options or the process for making a complaint please refer 
to the Office of the Australian Information Commissioner’s website at:  
https://www.oaic.gov.au/freedom-of-information/reviews-and-complaints/ 
 
Yours sincerely 
 
 
Gordon McKel ar 
FOI Decision Maker 
 
 
Encl.  
A814812 
Confidential 
 
2 

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1
01
o O
v r
e g
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ie i
w sation 
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t v
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e g f
ne o
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ati h
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ns o enf Aefiut ostf ra lians
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8 u
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19 eport  
2018 investing for 
the benefit 
2ann0
ual re 19
port
of future 
generations  
of Australians

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© Future Fund Board of Guardians  
ISSN: 2205-8044 (print)
ISSN: 22058052 (online)
With the exception of the Commonwealth Coat of Arms, all material presented in this 
document is provided under a Creative Commons Attribution 3.0 Australia  
(www.creativecommons.org/licenses/ by/3.0/au) licence.
To the extent that copyright subsists in a third party, permission will be required from 
the third party to reuse the material.
The document must be attributed as the Future Fund Annual Report 2018-2019.
Guide to reading this report
This report describes the governance, operations and performance of the Future 
Fund Board of Guardians and the Future Fund Management Agency over the 2018-19 
financial year. Additional information, including periodic investment and operational 
updates, policies and plans, is available at www.futurefund.gov.au.
An electronic version of this report is available at www.futurefund.gov.au/about-us/
annual-reports 
Data in this report may not sum due to rounding.
Investment performance data in the main sections of this report may not correspond 
directly with data in the Financial Statements due to differences in classification. 
Investment performance data presented in the main sections of the report include 
the investments and notional values of derivatives held by both the Future Fund 
and Future Fund Investment Companies. The Statement of Financial Position in the 
Financial Statements presents the investments and net market value of derivatives 
held directly by the Future Fund and the Future Fund Investment Companies as one 
aggregated number.
As an aid to readers, this report includes a glossary of abbreviations and an 
alphabetical index.
Material used ‘as supplied’
Provided you have not modified or transformed the material in any way (including, for 
example, by changing the text; calculating percentage changes; graphing or charting 
data; or deriving new statistics from published statistics), the Future Fund prefers the 
following attribution: Source: Future Fund.
Feedback
If you have questions about any aspect of this report, please contact the Future Fund’s 
Head of Public Affairs & Strategic Relations on (03) 8656 6400.

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01
Contents
Letter of transmittal 
03
Year at a glance 
04
Report from the Chairman 
06
Report from the Chief Executive Officer 
08
01 
Organisation overview 
10
02 
How we invest 
18
03 
Investment performance 
32
– 
Future Fund 
34
– 
Medical Research Future Fund 
51
– 
Aboriginal and Torres Strait Islander  
 
Land and Sea Future Fund 
61 
– 
DisabilityCare Australia Fund 
63
– 
Nation-building Funds 
66
04 
Governance and accountability 
70
05 
Our people 
82
06 
Financial statements 
98
07 
Other mandatory reporting 
163
08 
References and index 
169

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02

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03
Letter of 
t L
ra e
n tt
transmittal
s e
m r o
it f 
tal
24 September 2019
Dear Minister
f I
u n
t v
u e
I am pleased to present the Annual Report of the Future Fund Board of Guardians (Board) 
r s
e g ti
and the Future Fund Management Agency (Agency) for the 2018-19 financial year.
n
e g f
ne o
The report has been prepared in accordance with section 46 of the Public Governance, 
r r t
ati h
Performance and Accountability Act 2013 (PGPA Act) and section 81 of the Future Fund 
o e b
ns o
Act 2006, and includes the required disclosures in relation to the Future Fund, the Medical 
en
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Research Future Fund, the Aboriginal and Torres Strait Islander Land and Sea Future 
efi
u t o
Fund, the DisabilityCare Australia Fund, and the Nation-building Funds.
st f 
ra  
l
The report includes the Board and Agency’s audited financial statements as required 
ian
by section 34(i) of the Public Governance, Performance and Accountability (Financial 
s
Reporting) Rule 2015.
As Accountable Authority of the Agency, I certify that:
 
\
fraud risk assessments and fraud control plans have been prepared by the Agency
2 A
0 n
 
\
appropriate mechanisms for preventing, detecting incidents of, investigating or 
1 n
8 u
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otherwise dealing with, and recording or reporting fraud that meet the specific needs 
2 a
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1
of the Agency are in place
9 epor
 
\
all reasonable measures have been taken to deal appropriately with fraud relating to 
t  
the Agency.
Yours sincerely
Hon Peter Costel o AC
Chairman
Future Fund Board of Guardians

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04
Year at a glance
Future Fund
11.5%             
5.6%             
2018-19 return
2018-19 benchmark target
10.4% pa        
6.5% pa        
10 year return
10 year benchmark target
$16.8  billion       
$102.1  billion      
Earnings for 2018-19
Earnings since inception
$162.6 billion                            
Balance at 30 June 2019

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05
a Y
Cash flow history at 30 June 2019
 g e
l a
a r a
nc t 
Contributions 
Earnings 
Withdrawals 
Balance 
e  
(bn)
(bn)
(bn)
(bn)
Future Fund
$60.5 + $102.1 – $0.0 = $162.6
Medical Research 
Future Fund
$9.0 + $1.1 – $0.3 = $9.8
f I
Aboriginal and Torres 
u n
t v
u e
Strait Islander Land and 
r s
$2.0 + $0.0 – $0.0 = $2.0
e g tin
Sea Future Fund
e g f
ne o
r r t
a
DisabilityCare 
ti h
o e b
+
–
=
n
Australia Fund
$18.6
$0.8
$3.1
$16.4
s o en
f A efi
Building 
u t o
s
+
–
=
t f 
Australia Fund
$10.9
$2.3
$9.2
$4.0
ra  
lians
Education  
Investment Fund
$6.5 + $1.7 – $4.2 = $4.0
Total funds under management
$198.8
2 A
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19 e
Other fund returns in 2018-19
port  
Medical Research 
Aboriginal and Torres 
DisabilityCare 
Future Fund
Strait Islander Land and 
Australia Fund
Sea Future Fund*
5.2%
0.9%
2.2%
3.0% benchmarket target
–
2.3% benchmarket target
Building 
Education  
Australia Fund
Investment Fund
2.3%
2.3%
2.3% benchmarket target
2.3% benchmarket target
*This Fund was established in February 2019 and is in an initial transition phase.

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06
Report from the 
This prudent approach has delivered strong long-term 
returns and remains the cornerstone of all investment 
Chairman
decisions the Board makes.
In addition to the Future Fund, the Board also invests 
an additional five public asset funds on behalf of future 
generations of Australians.
The Future Fund was created to strengthen 
the Commonwealth’s long-term financial 
The Medical Research Future Fund, which is designed to 
position.
generate earnings to support grants to support medical 
research and innovation, continues to perform well. Since 
In pursuit of that objective, 2018-19 was a 
inception, the Fund has delivered a return of 4.5% per 
good year with the Fund delivering a return of  annum, exceeding its target return of 3.0% per annum.
11.5% or $16 bil ion.
The DisabilityCare Australia Fund and the two 
Nation-building Funds also performed as intended. 
The contributed capital of $60.5 billion has now earned 
The Aboriginal and Torres Strait Islander Land and Sea 
over $102 billion in the Fund, taking the Future Fund to a 
Future Fund (ATSILS Fund) was established in February 
total of $162.6 billion.
2019 and is in an initial transition phase. The Board is 
The capital and earnings are owned by the government 
developing a long-term investment strategy for the 
and, ultimately, the citizens of Australia. 
ATSILS Fund.
The Future Fund is a long-term fund. Over 10 years 
The addition of new portfolios to the Board’s 
the Fund has achieved a return of 10.4% per annum, 
responsibilities is an important statement of the 
exceeding its benchmark of 6.5% per annum. This return is 
confidence and trust placed in the Board and reflects the 
particularly impressive on a risk-adjusted basis given the 
strength of the Future Fund as an investment institution.
level of risk taken by the Fund.
At 30 June 2019 the Board of Guardians invests over 
Since the Future Fund was established, the Board of 
$198 billion across the six public asset funds.
Guardians has been highly disciplined in balancing its 
risk and return objectives as it invests on behalf of future 
generations of Australians. 

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07
Outlook
Also in November, I was reappointed for a second term 
t R
as Chairman and John Poynton AO for a second term as a 
h e
e
Board member, with effect from February 2019.
 C po
The first half of the financial year was characterised by 
h r
volatile markets as concerns regarding the trade dispute 
a t f
i
Following the end of the financial year, in July 2019 
r r
ma o
between the US and China and other geopolitical issues 
m
the Government made a $7.8 billion contribution to the 
n  
came to the fore. 
Medical Research Future Fund. This is a significant inflow 
This led to a period of monetary policy easing by central 
which will be invested in line with the Fund’s mandate. 
banks which, together with market expectations of 
On 1 September 2019 the assets of the Building Australia 
further easing and continued global economic growth, 
Fund were transferred to the newly created Future 
has supported strong asset returns in the second half of 
Drought Fund, which the Board of Guardians will manage. 
the year. 
f I
u n
t v
u e
In the longer term the global economy will face structural 
r s
Acknowledgements
e g tin
challenges including demographic shifts and high levels 
e g f
On behalf of the Board of Guardians, I thank the 
n
of debt.
e o
r r t
responsible Ministers for their continued support.
ati h
The Board continues to see long-term returns as unlikely 
o e b
n
I thank my fellow members of the Board of Guardians, 
s o
to replicate the strong returns of recent years and is 
en
who each contribute a wealth of expertise and skill to the 
f A e
cautious of the risks for investors. 
fi
Board and its Committees.
u t o
st
In this uncertain environment the Board is maintaining its 
f 
ra  
Finally, I acknowledge and thank the staff of the Future 
l
patient long-term approach to investment.
ia
Fund Management Agency, led by David Neal, for their 
ns
Governance
hard work and dedication.
In November 2018 the responsible Ministers appointed 
John Fraser to the Board of Guardians. John brings with 
2 A
him significant experience in investment management 
0 n
1 n
and corporate governance. 
8 u
-2 a
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19 eport  
Hon Peter Costello AC
Chairman 
Future Fund Board of Guardians

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08
Report from the  
The number and value of funds we manage continue to 
grow, adding greater responsibility and complexity to our 
Chief Executive 
task. To sustain our success into the future we need the 
organisation to be in the best shape it can be. In 2018 
we refined our structure to strengthen our collaborative 
Officer
approach and help us to be more nimble and streamlined 
in the hunt for investment opportunities, the management 
of risk and the development of strong enabling 
technology. Supported by great energy and commitment 
We are very pleased with the investment 
from across the team, together with a number of new key 
performance of the funds under our 
hires, we are delighted with the way the new structure 
management over more than a decade. 
has been bedded down over the last year.
More pleasing still is that these strong returns have been 
The organisation has been a hive of activity building our 
generated whilst limiting the level of risk in the portfolio. 
investment data and analytics capabilities and improving 
We have kept a sharp focus on the specific investment 
our technology more broadly. The benefits of these 
mandates provided to us by the government for each of the 
projects are now starting to flow with improved access 
funds we manage. This approach targets an appropriate 
to better quality data in a more timely manner, all built on 
level of risk and seeks to extract as much return as 
a more resilient and flexible technology infrastructure. A 
possible for that risk by a careful, thoughtful portfolio 
number of other exciting projects are nearing completion 
construction and an intense search for opportunities to 
that will further transform our management of data and 
add value by our talented and dedicated team.
provision of analytics.
Our investment activity this year has remained 
Whilst the completion of these projects is leading to a 
disciplined, with a continued focus on managing the 
significant improvement in the quality of our investment 
flexibility and liquidity of the portfolio. In an increasingly 
technology, we believe that the role technology can 
uncertain and challenging environment the ability to 
play in adding value to our processes and ultimately our 
adjust the portfolio to shifts in the market environment 
portfolios is profound. At its heart, the Future Fund’s task 
may well be paramount.
is to transform data into information into insights and 

---

09
ultimately into portfolio value creation. Given the scale 
Vale Paul Costello
t R
and complexity of this task for a large portfolio diversified 
h e
e C po
across geography, asset class, manager and structure, 
Of great sadness to many of us at the Future Fund and 
E r
technology is a key enabler.
across the broader industry, Paul Costello, the founding 
O t fro
Chief Executive Officer of the Future Fund, passed away 
m
To lead our ongoing efforts in this space we were pleased 
 
in November 2018. 
to welcome Richard Large to the newly created role of 
Chief Technology Officer in February 2019. Richard is 
Paul, in many ways, was the father of our successful 
focused on developing our long-term technology strategy, 
culture at the Agency and a friend and mentor to me and 
ensuring that we have the capabilities and systems 
others. His legacy lives on strongly here and will continue 
needed to take us into the next decade.
to do so for many years to come. 
f I
Last year we strengthened our investment leadership 
u n
t v
Acknowledgements
u e
team, promoting David George and Wendy Norris as 
r s
e g tin
Deputy Chief Investment Officers for public and private 
Thank you to the Chairman and the Board of Guardians for 
e g f
n
markets respectively, reporting directly to Raphael 
their continued support and guidance.
e o
r r t
a
Arndt as Chief Investment Officer. Completing the 
ti h
o
I also thank my extraordinary team at the Future Fund 
e b
senior investment leadership team we were delighted to 
ns o e
welcome Sue Brake as Deputy Chief Investment Officer, 
Management Agency for their effort and dedication 
n
f A e
across a very busy year. Every team across the business 
fi
Portfolio Strategy. Together, Raphael, Wendy, David and 
u t o
s
Sue are focused on further strengthening our joined-up, 
plays an important role, working together tirelessly as one 
t f 
ra  
team to deliver strong, long-term returns for the benefit of 
l
collaborative approach to investing.
ian
future generations of Australians. 
s
Looking across the organisation more broadly, leadership 
will be a critical factor in our future success. We have 
I look forward to another busy and productive year ahead.
been focussing on uplifting our leadership capability as 
we push ourselves to collaborate more effectively and 
make better investment decisions. This will continue to 
2 A
0 n
1 n
be a focus into the years ahead.
8 u
-2 a
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Finally, we made good progress in developing our newly 
19 ep
created dedicated risk function, which brings together our 
ort 
existing operational and investment risk teams. During 
 
the year, the Risk Team has reviewed and designed a 
revised Risk Management Framework that supports 
David Neal
risk management as an enabler and value add towards 
achieving our vision and strategic priorities.
Chief Executive Officer 
In summary, we’ve had a lot to keep ourselves busy 
Future Fund Management Agency
with in 2018-19. I’m excited about the challenges and 
opportunities facing us in the year ahead as we strive to 
build on the success we have achieved to date.

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10
01
Organisation 
overview
We are Australia’s sovereign wealth fund, investing for the 
benefit of future generations of Australians.
Every dol ar that we make is a dol ar that adds to Australia’s 
wealth and contributes to its future.
Our organisation
Our funds
Established in 2006, we invest the assets of six special 
Each fund we manage has an investment mandate 
purpose public asset funds: the Future Fund, the Medical 
that is determined by the Australian Government under 
Research Future Fund, the Aboriginal and Torres Strait 
legislation.
Islander Land and Sea Future Fund, the DisabilityCare 
We have no role in determining the projects and initiatives 
Australia Fund, and two Nation-building Funds.
that are supported by drawdowns out of the various funds. 
The Future Fund Board of Guardians is responsible for 
Our sole responsibility is to invest the funds.
investing the assets of the funds, supported by the Future 
Fund Management Agency.
We operate independently from the Australian 
Government and balance the risk and return aspects of 
each fund’s investment mandate to maximise returns.

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11
Future Fund
Medical Research Future Fund
The Future Fund was established in 2006 to strengthen 
The Medical Research Future Fund was established in 
01
the Australian Government’s long-term financial position.
2015 to improve the health and wellbeing of Australians 
o O
v r
by providing grants of financial assistance to support 
e g
r a
The Fund received contributions from a combination 
v n
medical research and medical innovation.
ie i
of budget surpluses, proceeds from the sale of the 
w sat
Government’s holding of Telstra and the transfer of 
The Fund’s Investment Mandate is to achieve at least 
ion
remaining Telstra shares.
the Reserve Bank of Australia cash rate target + 1.5% to 
 
2.0% per annum, net of investment fees, over a rolling 
Until 30 June 2017 the Investment Mandate for the Future 
10-year term.
Fund was to achieve an average annual return of at least 
the Consumer Price Index (CPI) + 4.5% to 5.5% per annum 
Payments from the Medical Research Future Fund for 
f I
u n
t v
over the long term with an acceptable but not excessive 
projects and initiatives are determined by the Australian 
u e
r s
e g t
level of risk.
Government in accordance with the Medical Research 
in
e g f
Future Fund Act 2015.
ne o
From 1 July 2017 the long-term benchmark return target 
r r t
at
was reduced by the responsible Ministers to CPI + 4% 
i h
o
Aboriginal and Torres Strait Islander Land 
e b
n
to 5% per annum, reflecting the changed investment 
s o e
and Sea Future Fund
n
environment. The return objective must continue to be 
f A efi
pursued with acceptable but not excessive levels of risk.
The Aboriginal and Torres Strait Islander Land and Sea 
u t o
st f 
Future Fund (ATSILS Fund) was established in February 
ra  
While legislation permits drawdowns from the Future 
li
2019 to enhance the Commonwealth’s ability to make 
an
Fund from 1 July 2020, the Government announced in 
s
payments to the Indigenous Land and Sea Corporation.
the 2017-18 budget that it will refrain from making 
withdrawals until at least 2026-27.
The ATSILS Fund was established with a capital 
contribution of $2 billion transferred from the Aboriginal 
The expected continued growth in the portfolio as a 
and Torres Strait Islander Land Account.
result of this decision will considerably strengthen the 
2 A
0 n
Commonwealth’s position.
The Fund’s Investment Mandate requires the Board to 
1 n
8 u
-
target an average return, net of costs, of at least the 
2 a
Withdrawals from the Future Fund, when they are 
0 l R
Consumer Price Index + 2.0% to 3.0% per annum over the 
19 e
made, will help the Australian Government to meet its 
p
long term while taking an acceptable but not excessive 
or
obligations out of Consolidated Revenue (including 
t 
level of risk. 
 
defined benefit pensions) and thereby ease the pressure 
on government finances.
During the initial transition period, as the Future Fund 
Board of Guardians develops a long-term strategic asset 
allocation, the government anticipates a return lower than 
the benchmark return.
Payments from the ATSILS Fund will be managed in line 
with the Aboriginal and Torres Strait Islander Land and 
Sea Future Fund Act 2018.

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12
DisabilityCare Australia Fund
The Mandates require that investments minimise the 
probability of capital loss over a 12-month horizon. The 
The DisabilityCare Australia Fund was established in 
assets of the Nation-building Funds are invested in a 
2014 to help fund the National Disability Insurance 
combination of short- and medium-term debt instruments.
Scheme (NDIS), which will support a better life for 
Australians with a significant and permanent disability 
Payments from the Funds are determined by the 
and their families and carers.
Australian Government in accordance with the Nation-
building Funds Act 2008.
The Fund will reimburse States, Territories and the 
Commonwealth for expenditure incurred in relation to 
Building Australia Fund
the NDIS.
The purpose of the Building Australia Fund is to enhance 
The Fund’s Investment Mandate sets a benchmark return 
the Australian Government’s ability to make payments 
of the Australian three-month bank bill swap rate + 
in relation to the creation or development of transport, 
0.3% per annum calculated on a rolling 12-month basis. 
communications, energy and water infrastructure and in 
Investments must minimise the probability of capital loss 
relation to eligible national broadband matters.
over a 12-month horizon.
After year end the Building Australia Fund was abolished 
Payments from the DisabilityCare Australia Fund are 
and its assets transferred to the Future Drought Fund 
managed in accordance with the DisabilityCare Australia 
when the Future Drought Fund Act 2019 came into effect 
Fund Act 2013.
on 1 September 2019.
Education Investment Fund
Nation-building Funds
The purpose of the Education Investment Fund is to 
The Nation-building Funds, namely the Building 
enhance the Australian Government’s ability to make 
Australia Fund and the Education Investment Fund, were 
payments in relation to the creation or development of 
established in 2008 to provide financing resources to 
higher education infrastructure, research infrastructure, 
help meet the Australian Government’s commitment to 
vocational education and training infrastructure.
Australia’s future through investment in critical areas of 
infrastructure.
The Australian Government has announced its intention 
to abolish the Education Investment Fund and transfer 
The Funds’ Investment Mandates set a benchmark return 
the assets to a new fund, the Emergency Response Fund.
of the Australian three-month bank bill swap rate + 0.3% 
per annum calculated on a rolling 12-month basis.
Investing for the benefit of future 
generations of Australians
Every dol ar of value that we add to the 
Future Fund wil  strengthen the Australian 
Government’s long-term financial position.

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13
Strategic imperatives
Our purpose
Our strategic imperatives highlight the essential 
We have a clear purpose: to invest for the benefit of 
01
ingredients to our success. They are:
o O
future generations of Australians.
v r
e g
r a
 
\
The best portfolios to achieve our Investment 
v
Everything we do is aligned to achieving our purpose. 
n
ie i
Mandates.
w s
It provides a focus for our people, their efforts and our 
atio
priorities.
 
\
A well-managed organisation with a talented, 
n 
motivated and engaged team.
Every extra dollar of value that we add to the funds we 
manage will have a real impact on future generations of 
 
\
Efficient, effective and fit-for-purpose processes and 
Australians.
technology.
f I
u n
t v
u
 
\
The trust and respect of the Australian Government, 
e
r s
Our business strategy
e g t
Parliament and the investment community.
in
e g f
To execute our purpose, we have developed a long-term 
ne o
r r t
business strategy that articulates a consistent, shared 
Culture and values
ati h
o
understanding of the direction and priorities of the 
e b
n
This is how we go about doing what we do – the character 
s o e
organisation.
n
and behaviour we embed into the way we act and interact:
f A efi
There are a number of factors that feed into our strategy: 
u t o
 
\
We focus on what matters. Everything we do is 
st f 
our purpose, our strategic imperatives and pillars, our 
ra  
focused on achieving our purpose, we don’t get side-
li
culture and values, and the strategic activities we need 
a
tracked by distractions.
ns
to focus on.
 
\
We always do the right thing by our country, our 
organisation and our team.
 
\
We work together to achieve the best outcome every 
2 A
time and ultimately to achieve our purpose.
0 n
1 n
8 u
-2 a
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19 eport  
The ATSILS Fund assists Indigenous 
Every dol ar that we add to the Medical 
Australians to acquire and manage land, 
Research Future Fund supports medical 
water and water-related rights.
research and medical innovation.
The value we create for the 
The Nation-building Funds have supported 
DisabilityCare Australia Fund goes 
investment in areas of infrastructure such as 
towards expenditure under the National 
transport, communications, energy, water, 
Disability Insurance Scheme.
education and research. 

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14
Strategic pillars
2.  Driving greater efficiency and productivity 
improvements across the business.
There are three key pillars to our business strategy:
3.  Ongoing investment in our people and culture, 
 
\
One team, one purpose – we work as one team, 
through the provision of training and development 
striving to find the best possible solutions. Combining 
and a well-structured employee environment that 
a breadth of experience and skills into a collaborative 
attracts and retains high performers.
whole creates a meaningful competitive advantage.
The strategic activities we have chosen to focus on 
 
\
Nimble and flexible – we are broad and creative in 
reflect the context we are operating in. The number of 
our search for opportunities to improve the portfolio, 
funds we manage, and the value of these funds, has 
the organisation and ourselves. We believe that 
grown over the years. At the same time, the investment 
being flexible, nimble and opportunity-driven will add 
environment has become more complex, and the 
substantial value.
increasing sophistication of institutional investors has 
led to a growing level of competition for attractive 
 
\
Leveraging the best in the world – we have access to 
investment opportunities. Adding to that, significant 
the best investment thinkers in the world through our 
improvements in technology are disrupting traditional 
peers and partners. We leverage the best in the world, 
investment models and creating new opportunities to 
building strong and enduring partnerships.
generate returns and monitor and manage risk.
Strategic activities
Upgrading our investment data, systems and analytics 
To deliver our business strategy, we continue to focus on, 
capability, and using technology to drive greater efficiency 
and are making good progress in, three priority areas:
and effectiveness across our business and investment 
processes, will give us more insight into our portfolio 
1.  A multi-year program of work to materially upgrade 
exposures in real time and in turn help us to generate 
our investment data, systems and analytics 
strong returns and monitor risk. We are also investing in 
capability.
our people and culture because we recognise that the 
capability of our staff is at the heart of our success.
During the year we deployed new data and analytics tools that have improved the quality and speed by which data gets to our investment teams, and 
how they access it. The application of tools like DataShare, which allows investment teams to access and publish data sets, frees up our Analysts’ 
time, which they can now spend on value-add activities, leading to real productivity gains. Read more on page 23.

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15
Our business strategy
01
o O
v r
e g
r a
v n
ie i
w sation 
Our purpose 
is why we 
Investing for the benefit of future 
exist
generations of Australians
f I
u n
t v
u e
r s
e g tin
e g f
ne o
r r t
ati h
o e b
Our strategic 
The best 
A well-
Efficient, 
The trust and 
ns o e
imperatives 
portfolios to 
managed 
effective and 
respect of 
n
f A efi
define what 
achieve our 
Agency with 
fit-for-purpose 
Government, 
u t o
s
we must do to 
Investment 
a talented, 
processes and 
Parliament and 
t f 
ra  
Mandates
motivated and 
technology
the investment 
l
succeed
ian
engaged team
community
s
How we will 
2 A
0 n
achieve our 
1 n
8 u
Focus on 
Do the  
Work 
-
purpose is by 
2 a
0 l R
what matters
right thing
together
1
upholding our 
9 epo
values
rt  
Our strategic 
pillars are 
the strength 
One team, 
Nimble and 
Leveraging the 
behind our 
one purpose
flexible
best in the world
purpose
Our current 
strategic 
Materially upgrade 
Drive greater 
Invest in our 
focus is to…
our investment data 
efficiency and 
people and 
and analytics
productivity
culture

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16

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17
in H
v o
e w w
Building a technology 
st e 
roadmap for the future
Richard Large, Chief Technology Officer
f I
u n
The Future Fund has a clear high-level vision of 
We are undertaking extensive research as we explore 
t v
u e
r s
technology, data and analytics working in harmony 
the art of the possible.
e g tin
to support investment decisions and corporate 
e g f
The exercise is designed to ensure the organisation 
ne o
decision making.
r r t
makes the right strategic decisions in relation to 
ati h
o e b
The role of Chief Technology Officer was created in 
technology and also inspire and excite the broader 
ns o e
2018 to lead the efforts to bring this vision to life.
business as we develop and implement our plans.
n
f A efi
u t o
Improvements in technology are disrupting traditional 
It is a highly collaborative approach designed to 
st f 
investment models by creating new opportunities to 
engage teams right across the business so that we 
ra  
lia
generate returns and monitor and manage risk.
can jointly define our future state and how we get 
ns
there.
As Australia’s sovereign wealth fund investing 
over $198 billion on behalf of future generations of 
We will consider how we can employ artificial 
Australians, we need to keep up with advances in 
intelligence and machine learning tools to improve 
technology and harness the opportunities they offer 
our investment process and to generate even greater 
2 A
so we can be the most effective investor we can.
insight into our portfolio.
0 n
1 n
8 u
-
We need to determine how we can deploy the latest 
We will look for ways to use technology to make 
2 a
0 l R
1
innovations and emerging technologies to the benefit 
knowledge sharing within our organisation more 
9 epo
of the performance of the funds we manage and seek 
efficient and enable teams from right across the 
rt 
to give our organisation a strategic and competitive 
business to collaborate better.
 
advantage.
We will also explore ways to improve how we work 
Recent efforts have focused on providing us with 
and organise ourselves. The Future Fund operates 
solid foundations in the key areas of data sourcing, 
an outsourced model so we have a great opportunity 
management and consumption alongside upgrading 
to work alongside our partners to drive innovation in 
our infrastructure and refreshing our workplace 
our processes.
technology.
There is a lot to do and we are all excited about the 
Building on these strong foundations, we have 
challenge.
embarked on a comprehensive review of our 
We look forward to reporting back on our progress 
technology and data strategy which will provide the 
next year.
roadmap for the next three to five years.

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18
02
How we invest
Our investment approach is based on one team working together 
for the benefit of the portfolio as a whole. We call this our ‘one 
team, one purpose’ philosophy.
Our team collectively channels its best ideas, irrespective 
The DisabilityCare Australia Fund and the Nation-building 
of asset class, up to the total portfolio to achieve the 
Funds have shorter-term investment horizons. The assets 
investment objective of each fund.
of these funds are invested in a combination of short- and 
medium-term debt instruments.
We invest across public and private markets in the broad 
categories shown in the table on the following page. 
The Aboriginal and Torres Strait Islander Land and Sea 
Across each category we develop an investment strategy 
Future Fund was established in February 2019. The 
for each fund that is consistent with its investment 
Fund is in a transition phase as we develop a long-term 
objectives and our approach to total portfolio construction, 
investment strategy. At 30 June 2019 the assets of the 
which is discussed further in the following pages.
Fund were invested in a combination of cash and short-
term deposit instruments.
For the Future Fund and the Medical Research Future 
Fund, we construct highly diversified portfolios that are 
as robust as possible to a range of plausible scenarios.

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19
Investment categories
02
Category
Sectors covered
in H
v o
Alternative assets
Skill-based absolute return strategies and other risk premia providing diversity of 
e w w
st
return streams
e 
 
Cash
Treasury bills, bank bills and deposits
Debt
Primarily through non-government fixed interest securities extending to mortgages, 
high yield credit and corporate loans
Portfolio overlays
Listed equities, developed and emerging market currency, domestic and global 
interest rates and portfolio protection strategies
f I
u n
t v
u e
Listed equities 
Australian equities, global developed market equities, global emerging market equities, 
r s
e g tin
both long-only and long-short
e g f
ne o
Private equity
Venture capital, growth capital, buyout, distressed debt for control
r r t
ati h
o e b
Tangible assets
Real estate, infrastructure, timber and agricultural assets gained through public or 
ns o e
private markets
n
f A efi
u t o
st f 
ra  
lia
comparative advantage that significantly improves 
ns
Joined-up investment approach
the prospect of meeting our investment objective. 
When constructing the portfolio we bring together the 
It challenges our people to think broadly, test and 
top-down and bottom-up views. We call this being 
challenge their views and the thoughts of their 
joined-up. 
external partners, and compare the merits of any one 
2 A
investment versus another.
0 n
Our top-down people look at the global economy, 
1 n
8 u
financial markets and political risk, and think about 
-2 a
0 l R
how this will impact the portfolio. Their thinking is 
19 ep
also influenced by the level and nature of the insights 
ort 
coming from our bottom-up people. Our bottom-up people 
 
look across the world for great assets and investment 
opportunities, thinking about whether they are being 
rewarded for the risk they are taking and having regard to 
the big picture context evaluated by our top-down people.
This joined-up, integrated approach means we don’t set 
a fixed strategic asset allocation from the top and then 
require those allocations to be filled across each of the 
investment sectors. Instead our investors come together 
to share insights and take a whole of portfolio approach 
to making investment decisions. It is the cornerstone 
of our investment philosophy and we consider it a key 

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20
Dynamic investment process
Given that prospective returns and risks for all the different types of investment opportunities are always changing, we 
manage the portfolios dynamically.
By doing so we seek to extract the best possible return adjusted for the level of risk in markets and individual 
investments. We expect to increase risk levels when the expected reward for taking risk is high and to reduce risk levels 
when the expected reward for taking risk is low.
The key elements of our investment process are:
1
2
Foundation 
Analysis of the investment 
inputs
environment
Our core investment beliefs inform our interpretation of 
We develop a deep understanding of the investment 
each fund’s investment mandate and its objectives and 
environment we are operating in at any one time, along 
help us to determine our appetite for the types and levels 
with regularly analysing a range of plausible future 
of risk we are prepared to take in each of the funds. Our 
scenarios over multiple time horizons so that we can 
beliefs are listed on page 24.
better understand how our portfolios might behave if 
conditions change.
3
4
Risk management 
Investment analysis 
and budgeting
and selection
Our investment policy framework helps us to clearly 
Once we have decided on an appropriate risk budget for 
and effectively manage the risk of our funds at what we 
a given fund, we allocate and implement that budget 
consider to be acceptable, rather than excessive, levels. 
through underlying investment activity. Our ongoing 
Given our assessment of the environment and consistent 
assessment of the investment environment provides us 
with our investment policy framework, we then choose 
with insight into the behaviour of the investments we 
appropriate and mutually consistent risk settings for each 
make and how they interact with each other in portfolio 
of our portfolios, which are informed by their mandates. 
construction. We assess appropriate risk levels on a 
These risk budgets are dynamically managed.
total portfolio level using a range of factor lenses.
Enhancing our  
investment decision-making process. This 
decision-making process 
includes periodically assessing committee 
composition and skil -set and undertaking 
structured committee effectiveness exercises 
We have undertaken a program of work over 
looking at how the committees make decisions 
the last three years to evolve and optimise our 
and bring together diversity of thought. 

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21
The Investment Committee
02
in H
v o
e w w
st e  
Raphael Arndt
Sue Brake
Sarah Carne
David George
Chief Investment Officer 
Deputy Chief Investment 
Head of Listed Tangibles
Deputy Chief Investment 
(Chair)
Officer, Portfolio Strategy
Officer, Public Markets
f I
u n
t v
u e
r s
e g tin
e g f
ne o
r r t
ati h
o e b
ns o enf Aefiut ostf ra 
Björn Kvarnskog
Hugh Murray
David Neal
Wendy Norris
lian
Head of Listed Equities
Head of Overlays
Chief Executive Officer
Deputy Chief Investment 
s
Officer, Private Markets
Decision-making
The Committees consider detailed recommendations 
in relation to investment manager appointments and 
2 A
0 n
1
investment in specific assets.
n
The Agency’s Investment Committee, which meets at 
8 u
-2 a
least twice per month, provides review and decision-
0 l R
1
making in respect of the total portfolio construction 
9 e
Board
po
and brings forward recommendations to the Board for 
rt  
review and approval. The Committee also oversees the 
Management
management of the portfolio within the delegations 
agreed by the Board.
Investment Committee
The Investment Committee is supported by the 
Manager Review Committee and the Asset Review 
Committee. Both of these Committees comprise senior 
Manager Review 
Asset Review 
representatives from across the Agency and have 
delegated authority from the Investment Committee to 
Committee 
Committee
assess manager and asset due diligence. 
We are exploring changes to our process to 
where it can add the greatest value. In addition, 
ensure diversity of thought is used to enhance 
some committees no longer use sequential 
our decision-making, with some committees 
voting, instead voting simultaneously. We have 
moving to seeking indicative views of 
also delivered training for committee members 
committee members ahead of meetings. This 
and chairs to help committees function as 
will ensure that time in the meeting is focussed  effectively as possible. 

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22

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23
in H
v o
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Delivering new data 
st e 
and analytics capability
Access to high quality information is key to 
investment team. Analysts need to produce data to 
f I
investment decision-making. Over recent years we 
assist in portfolio design and quantitative analysis and 
u n
t v
u e
have embarked on a journey to materially upgrade our 
DataShare enables them to consolidate and manage 
r s
e g ti
investment data and analytics capabilities.
all their required data in one centralised location. It 
n
e g f
n
also facilitates collaboration between teams.
e o
We’ve made great progress.
r r t
ati h
We have developed business intelligence tools that 
o e b
We have completely redesigned our operating 
ns o
can adopt new sources of information, make them 
e
model for the sourcing, management and delivery of 
n
f A e
readily available across our investment teams, and 
fi
investment data. In the process we have established 
u t o
allow them to be easily accessed via user-friendly 
s
important new external partnerships to leverage best 
t f 
r
dashboards.
a  
l
in class technology services and skills. Consequently 
ian
we are enjoying a boost to the quality, scope and 
These tools are improving the quality, reliability 
s
timeliness of the data we need to run our portfolios.
and speed by which data gets to our investment 
teams, and how they access it. Improvements to our 
We have also built a new platform for the sharing and 
workplace technology and mobility solutions means 
interrogation of data. These advanced consumption 
these new tools are available wherever our staff are: 
capabilities are giving us more visibility into our 
2 A
0
in the office, at home or on the road.
n
1 n
portfolio exposures, transforming data into insights 
8 u
-2 a
and in turn helping us to generate strong returns and 
The application of these tools is freeing up our 
0 l R
1
manage risk effectively.
Analysts’ time, which they can now spend on value-
9 epo
add activities, leading to real productivity gains.
rt 
So what does this look like in practice?
 
What’s next? The development of a new technology 
We have built a tool we call DataShare which allows 
and data strategy to determine our roadmap for the 
our investment teams to easily access and publish 
years ahead. Our Chief Technology Officer, Richard 
data sets for consumption by other members of the 
Large, discusses this on page 17.

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24
long-term total portfolio risk and return than skill-
Investment beliefs
related risk.
Our investment beliefs are at the core of how we invest. 
 
\
A higher expected return per unit risk (investment 
These beliefs shape the way we interpret each fund’s 
efficiency) can be obtained from a broadly diversified 
investment mandate and its objectives, and how we reach 
allocation across different return drivers.
investment decisions.
 
\
Prospective returns and risks vary materially over time 
We believe that:
in a way that is at least partially observable and hence 
 
\
Success for the Future Fund, the Medical Research 
exploitable. The amount of risk taken should therefore 
Future Fund and the Aboriginal and Torres Strait 
be managed dynamically as conditions change.
Islander Land and Sea Future Fund is achieving 
 
\
Being long-term funds, the Future Fund, the Medical 
returns over rolling 10-year periods in accordance with 
Research Future Fund and the Aboriginal and Torres 
the benchmark return of the respective mandates, 
Strait Islander Land and Sea Future Fund can invest 
while avoiding excessive downside risk.
in illiquid assets where illiquidity is appropriately 
 
\
Success for the Nation-building Funds and the 
rewarded, providing opportunities to increase returns.
DisabilityCare Australia Fund is achieving returns 
 
\
Markets can be inefficient to an extent that skilful 
over rolling 12-month periods in accordance with the 
management can add value after fees. Such ‘net 
benchmark return of the respective mandates, while 
alpha’, being uncorrelated with other return streams, is 
minimising the probability of capital losses over a 
extremely valuable to the total portfolio.
12-month horizon.
 
\
The management of costs is very important to 
 
\
The Board is ultimately responsible for all investment 
maximising returns. The Board will seek to lever the 
decisions. The Board’s role is to act as if it is the 
Fund’s scale and market standing to reduce costs.
owner of the funds which belong to the Government 
on behalf of the Australian people.
Partnering with investment 
 
\
The Board must ensure all parties involved in the 
managers
management of the funds, both internal management 
and external service providers, are as aligned as 
We partner with external investment managers who 
possible to delivery of success as defined above.
execute investment strategies on our behalf.
 
\
The likelihood of meeting investment goals is directly 
These managers have a detailed understanding of our 
related to the time, expertise and organisational 
investment strategy and our internal investment team 
effectiveness applied to decisions. Moreover, it is 
works closely with them to seek out the best investment 
critical that a high quality and clear governance 
opportunities around the globe.
framework, incorporating adequate time and diversity 
A list of our external managers at 30 June 2019 is 
of view, is in place.
available at Appendix A.
 
\
Portfolios are most efficiently managed as a whole, 
We prefer fewer, more meaningful, relationships with 
rather than a collection of sub-portfolios.
external managers. We select managers for their ability 
 
\
Risk management should emphasise qualitative 
to generate information and insight, their willingness to 
considerations, including a deep understanding of the 
genuinely collaborate and share knowledge and for the 
investment environment. Quantitative measurement is 
breadth of their collective coverage.
important in supporting and testing this process.
Our focus on alignment and building relationships has 
 
\
Investment risk is not well captured by a single 
improved the quality of investment opportunities available 
metric, and there are additional risks that must be 
to us and helped to make our dynamic investment process 
assessed and managed, such as liquidity, operational, 
more efficient.
counterparty and reputational risk.
Using investment managers also aligns with our 
 
\
Focus should be on appropriate exposure to market 
preference to keep our internal investment team as 
risk factors because these are a stronger driver of 
small and nimble as possible, while being as large as is 

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25
necessary to cover our investment universe. This allows 
We hold foreign currency exposure for a variety 
the team to focus on key investment decisions rather than 
of reasons. We believe it can enhance portfolio 
being drawn into day-to-day asset management.
diversification, in particular through access to defensive 
02
i
currencies that provide returns and liquidity in times of 
n H
Our investment manager selection process is designed 
v o
e w w
market stress and protect purchasing power when the 
s
to deliver high quality partnerships, and to ensure that 
t
Australian dollar weakens.
e 
the portfolio construction does not lead to excessive 
 
concentration of manager risk in any one investment 
Currency exposure for the Future Fund and the Medical 
manager. We seek the best commercial terms available 
Research Future Fund in 2018-19 is discussed in the 
and favour those that are appropriately structured. 
Investment Performance section of this report. In the 
case of the DisabilityCare Australia Fund and the 
Appropriately experienced investment professionals 
Nation-building Funds, given their higher domestic 
f I
are responsible for undertaking investment manager 
u n
t v
weighting and the conservative nature of these 
u e
and asset due diligence. These professionals apply a 
r s
e g
investment programs, we fully hedge all foreign currency 
tin
structured framework to assess the manager or asset 
e g f
exposures back to Australian dollars. In 2018-19, given 
n
and bring forward a recommendation to the Manager 
e o
the Aboriginal and Torres Strait Islander Land and Sea 
r r t
a
Review Committee or Asset Review Committee as 
ti h
Future Fund was invested in a combination of cash and 
o e b
n
appropriate. We undertake regular reviews of external 
s o
short-term deposit instruments, currency exposure was 
en
managers after appointment.
f A e
managed in line with the DisabilityCare Australia Fund 
fi
u t o
Due diligence incorporates assessment against agreed 
and the Nation-building Funds.
st f 
ra  
evaluation criteria and includes desk research, third 
lia
party research, site visits and interviews.
n
Managing tax arrangements
s
We undertake detailed operational due diligence and use 
In implementing our investment strategies we invest 
external advisers to undertake specialist due diligence or 
through various jurisdictions and investment vehicles for 
supplement the internal due diligence work as required.
a variety of commercial, legal and tax reasons.
2 A
In Australia the Future Fund Act 2006 exempts the 
0
Where we invest
n
1 n
Board from paying income tax. This reflects the fact that 
8 u
-2 a
As a global investor, we look across the world for the best 
our earnings are owned by the Australian Government. 
0 l R
19 e
investment opportunities available to maximise returns for 
Internationally we also benefit from sovereign immunity 
po
for tax purposes on the bulk of our investments.
r
the benefit of future generations of Australians.
t  
We pursue strong relationships and close collaboration 
Nonetheless, properly structuring our investments can 
with our partners around the world. We share and 
be essential to maintaining our rights and entitlements, 
acquire knowledge and access the best investment 
including the benefit of sovereign immunity for tax 
ideas through working with world-leading investment 
purposes in certain jurisdictions. Failure to manage these 
organisations.
matters can have a material impact on performance and 
would be inconsistent with our mandated objective to 
As an Australian fund we are always actively looking for 
maximise risk-adjusted returns while not causing any 
domestic investment opportunities. Our base currency is 
diminution of the Australian Government’s reputation in 
the Australian dollar and the return objective for our long-
financial markets.
term funds is tied to Australian inflation.
We will only invest through arrangements and structures 
Managing currency
that are commonplace and well tested by other public 
In managing currency risk, we conceptually consider 
investment institutions and funds in terms of compliance 
offshore investments on a fully hedged basis and 
with applicable laws and regulations. We do not invest 
then separately evaluate to what extent we wish to 
in schemes that contravene the OECD’s key principles 
hold an exposure to foreign currencies. We explicitly 
of transparency and information exchange for tax 
manage the size and nature of the foreign currency 
purposes. In making investments we assess whether 
exposures rather than allowing them to be shaped by 
the jurisdictions through which we invest are regarded 
the underlying investments.
by the OECD as having substantially implemented the 
internationally agreed tax transparency standard.

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26
Management of environmental, 
Transactional due diligence
social and governance issues
We have formally integrated the consideration of ESG 
factors into our investment process. This includes the 
Our approach
initial Investment Committee review of new investment 
opportunities and manager appointments, detailed due 
We believe that effective management of material 
diligence activities, and ongoing investment monitoring 
environmental, social and governance (ESG) risks and 
and review. 
opportunities will support our requirement to maximise 
long-term returns. The integration of ESG factors enables 
Where we make direct investments, such as for 
investors and companies to better understand the full 
direct infrastructure or property investments, or for 
spectrum of future risks and opportunities to which 
any other investment decisions that fall outside the 
assets are exposed. Sound management of ESG factors 
investment mandates with our investment managers, the 
also contributes more broadly to the development of more 
evaluation of ESG factors is conducted internally. These 
efficient and sustainable capital markets.
assessments are conducted by the relevant sector team 
using tailored ESG review tools and supported by our 
We focus on those ESG factors that have the potential 
ESG team with line of sight over all investment activities. 
to materially impact the performance of our investment 
In partnership with our investment managers, we may 
portfolio and/or our reputation. Relevant ESG factors 
engage third party consultants for investments where 
vary by industry, geography and across asset classes, but 
ESG factors are especially complex or material. We also 
can include any of the following: environmental quality, 
source ESG data and research from several specialist 
climate change, human and labour rights, occupational 
providers to enable us to better monitor and benchmark 
health and safety, workplace culture, supply chain risks, 
the ESG performance of our investment portfolios. 
corruption and corporate governance.
Partnering with our managers
Given our long-term investment approach, we steer our 
focus towards the impact of ESG factors on long-term 
Our investment model relies heavily on external 
investment value and quality.
investment managers to make investment decisions 
based on the investment strategy determined by the 
We integrate ESG factors into our investment decision-
Board. As such, these investment managers play an 
making processes, both at individual investment and 
important role in implementing our ESG strategy.
portfolio levels. This approach includes the evaluation 
of ESG factors in direct investments, integration of ESG 
This model requires careful coordination and alignment 
into the process for selecting the external investment 
between our organisation and our managers. As part 
managers responsible for individual investment decisions, 
of our manager selection and monitoring process we 
and management of ownership rights.
consider the extent to which the manager is effectively 
managing financial risks and opportunities that may 
Integrating ESG into the investment process
arise from ESG issues. This process is underpinned by 
dedicated and ongoing engagement and monitoring in 
Governance 
accordance with our Manager ESG Review Framework.
The Board has overall responsibility for risk management 
To the extent that formal or informal ownership rights 
including that related to ESG factors. Our framework for 
accrue in the manager’s portfolio, due consideration is 
managing the complex financial and reputational risks 
given to the manager’s ability to exercise those rights in 
and opportunities related to ESG factors is articulated 
the best interests of our organisation.
in our ESG Policy and incorporated in the Statement 
of Investment Policies available on our website. Our 
ESG Policy is consistent with our obligations under the 
Future Fund Act 2006, our investment mandates, beliefs 
and strategy. Our investment teams are assisted in the 
implementation of this Policy by a dedicated ESG team 
which reports directly to the Chief Investment Officer. 

---

27
Long-term investment themes
material especially for carbon intensive sectors of the 
economy. Moreover, climate risk may also materialise 
As a large, long-term asset owner with a globally 
at a macro level, through changes in macro-economic 
02
diversified portfolio, top-down views on the strategic 
conditions and financial stability. The risk to investors is 
in H
v o
trends that will influence outcomes for investors over 
e w w
exacerbated if markets are not accurately pricing these 
s
the medium to long term are an important component 
t
considerations. 
e 
in our capital allocation process. Many of those trends 
 
have a strong ESG component, both in terms of system 
Risks associated with the transition to a lower-carbon 
inputs (such as demography and resource scarcity) and 
economy can include changes to policy settings, 
regulatory and consumer responses to those inputs (such 
technology, and shifts in market dynamics. The physical 
as policies to limit global carbon emissions). 
impacts of climate change, manifested for example 
through the increased occurrence of extreme weather 
f I
u n
We are also interested in how disruptive innovation has 
events, can damage infrastructure and property and 
t v
u e
r s
the potential to impact our investment performance 
e g
cause supply chain disruptions. This can in turn result in 
tin
over different time horizons. We are integrating the 
e g f
lower productivity, reduced cash flows and impaired 
ne o
assessment of these long-term themes and trends 
asset values.
r r t
at
into our investment processes to enhance our capital 
i h
o e b
As with other ESG risks, we consider climate change from 
n
allocation process.
s o e
a risk-adjusted returns perspective. As such, we integrate 
n
f A e
Climate risk
fi
material transition and physical climate-related risks 
u t o
s
and opportunities into our investment processes. This 
t f 
For long-term investors, climate change presents risks 
ra  
l
includes understanding the potential risks to company 
i
and opportunities. While the exact impacts associated 
an
earnings due to climate risk and to what extent markets 
s
with climate change on financial markets are difficult to 
forecast, over longer timelines they are expected to be 
are pricing-in carbon risk. Moreover, we monitor climate 
2 A
0 n
1 n
8 u
-2 a
0 l R
19 eport  
The Future Fund invests in all segments of the economy, which means that many of our investments could be materially impacted, positively or 
negatively, by disruptive innovation. Given our long term, whole-of-portfolio approach, we can identify and consider material disruption themes and 
capitalise on opportunities to invest into disruption and manage disruption risk. Our Investment Stewardship and ESG team, including Sonia and 
Kerstin, have been focused on thinking about disruptive technology and how we can prepare for and take advantage of it as we look to sustain our 
success into the future.

---

28
performance of key portfolios and assess how our 
We are an active investor in disruption, primarily through 
external managers are addressing climate risk. 
our multibillion-dollar venture capital program but also 
through our hedge fund and global alpha exposures. 
More broadly, we are working to enhance our 
These programs provide us access to fund managers with 
understanding of the impact on investment performance 
insights into the forefront of global technological trends. 
of the emerging methodologies designed to lower carbon 
Our private equity co-investment program also provides 
risk of investment portfolios. 
direct exposure to pioneering firms at the cutting edge of 
We also consider ESG and climate risk in our proxy 
new technological trends, such as artificial intelligence 
voting and company engagement activities. Engagement 
and 3D printing. 
with company boards offers us enhanced insight 
While we aim to harness the opportunities disruptive 
into the scope and management of climate risk at 
innovation offers, we are equally cognisant of the 
investee entities as well as an opportunity to share our 
risks it poses to our portfolio, especially where our 
perspectives and expectations. 
investments are illiquid and/or long tenored. For example, 
As part of our diversified investment portfolio, and where 
the introduction of autonomous vehicles may have 
the expected risk-adjusted return is attractive, we also 
implications for our infrastructure investments, just as 
invest in companies and technologies that seek to 
the increasing influence of e-commerce may impact our 
leverage the transition to a lower carbon economy, such 
retail property assets. 
as wind, solar and energy efficiency technologies.
Predicting the impacts from disruption is inherently 
Disruptive innovation
challenging given uncertain timelines, pathways of 
adoption and interdependencies of technologies. To 
The world is currently experiencing a period of profound 
enable us to better identify and manage these issues in 
technological innovation. As new innovations are created, 
our investment activities, we have created a dedicated 
they provide opportunities for new business models 
disruption workstream within our investment team. Our 
to emerge which can materially and quickly disrupt 
disruption framework is designed to identify and evaluate 
prevalent consumption patterns and market composition. 
key disruption trends and link these to our key investment 
‘Disruptive’ innovation themes are not typically limited 
exposures at an early stage, increase the investment 
to a specific industry or asset class and pose both 
team’s knowledge of disruption risk and opportunities 
opportunities and risks to investors. 
and promote greater knowledge sharing between the 
We invest in all segments of the global economy, many of 
investment team and content specialists. Over time, we 
which are likely to be materially impacted by disruptive 
expect that these insights will be a key input into our 
innovation. Given our long term, whole-of-portfolio 
portfolio construction activities. 
approach, we are also well placed to identify and 
capitalise on opportunities to invest into disruption and 
manage disruption risk.
Our voting principles
 
\
All shareholders should be treated equally and have 
the right to vote in proportion to their economic 
interest in the company.
 
\
Companies should disclose accurate and material 
 
\
Companies should compose high calibre, commercially 
information on a timely basis to allow shareholders to 
experienced and diverse boards of directors to provide 
make informed decisions.
superior business leadership and integrity.
 
\
Companies should respect shareholder rights 
 
\
Boards should appropriately balance measures to 
and their directors should engage shareholders, 
protect the capital adequacy of the company with 
particularly on major decisions.
equitable treatment of shareholders.

---

29
Exercising ownership rights
Where a company resolution is found to be in conflict 
with our corporate governance principles or does not align 
We believe that good governance protects and creates 
with our best interests, we will consider voting against 
02
investment value. Moreover, ownership rights are 
the company board. During 2018-19, we voted against 
in H
v o
essential to ensuring the appointment and retention of 
e w w
Australian company boards in 8% of all resolutions.
s
fiduciaries of the highest quality and motivating those 
t e 
agents to support good governance practices and manage 
We prioritise the application of our corporate governance 
 
value creation over the long term.
principles in making these decisions. However, we also 
draw on the insight of our investment managers and proxy 
Our voting principles, shown below, guide how we 
research providers.
exercise these rights in public markets.
A detailed report on how we voted our Australian shares 
Voting our Australian equities shares
f I
can be found on our website, and is updated annually.
u n
t v
u e
r s
Voting rights in publicly listed Australian companies are 
e g
A summary of Australian voting activity during 2018-19 is 
tin
exercised directly by our organisation.
e g f
presented below.
ne o
r r t
ati h
o
Exercise of voting rights in publicly listed Australian companies
e b
ns o en
Number of 
FF with  
FF abstain
FF against 
f A e
Resolution type
fi
resolutions
company board
company board
u t o
st f 
r
Elect Director
 456
96.7%
0.0%
3.3%
a  
lian
Approve Remuneration Report
 189 
81.0%
1.1%
18.0%
s
Approve Remuneration Grant
 200 
83.5%
0.0%
16.5%
Other Remuneration
 20 
95.0%
0.0%
5.0%
Capital Management
 48 
89.6%
6.3%
4.2%
2 A
0 n
Fees for Directors
 28 
100.0%
0.0%
0.0%
1 n
8 u
-2 a
Mergers and Acquisitions
 29 
100.0%
0.0%
0.0%
0 l R
19 e
Other
 100 
99.0%
0.0%
1.0%
port 
Total resolutions voted
 1,070 
91.5%
0.5%
8.0%
 
Total meetings participated
212 
Not voted
1/1  Meetings/Resolutions
Total eligible (resolutions)
1,070 
Total eligible (meetings)
212 
 
\
Companies should establish a sound system of 
 
\
Companies should have appropriate performance 
oversight, management and control of business risks.
evaluation and incentive systems that align 
executives with long-term shareholder interests and 
 
\
Structures that transfer power from shareholders 
company strategy.
to management or third parties to protect against 
takeovers are generally undesirable.
 
\
Boards of directors should be composed to ensure 
the exercise of objective independent judgement on 
corporate affairs.

---

30
Voting our international listed equities shares
In 2018-19, we exercised proxy votes in respect of 
38,102 resolutions at 3,324 shareholder meetings. In 
We exercise all eligible voting rights in publicly listed 
the cases where our votes were not exercised, generally 
international companies. Given the scope and complexity 
our investment manager judged that it was not in our 
of corporate governance and proxy voting regimes in 
best interests to vote given structural impediments 
multiple international markets, our external investment 
to shareholder voting (such as share blocking/re-
managers advise us in exercising these voting rights. 
registration or power-of-attorney requirements), or that 
These managers, responsible for managing investments 
we were ineligible to vote. 
on our behalf, are well placed to evaluate good corporate 
governance in investee entities. 
In aggregate, we voted against company boards’ 
recommendations in 11% of all international resolutions. 
We oversee the quality of our external managers’ insights 
into corporate governance and proxy voting as part of 
A summary of international voting activity during 2018-19 
our Manager ESG Review Framework and by regularly 
is presented below.
evaluating their ownership policies and proxy voting 
decisions. We retain the right in all cases to override our 
managers’ recommendations.
Exercise of voting rights in publicly listed overseas companies
Number of 
FF with  
FF abstain
FF against 
Resolution Type
resolutions
company board
company board
Capital Management
 3,975
75.7%
0.1%
24.3%
Elect Director
 16,477
89.3%
1.6%
9.1%
Mergers and Acquisitions
 726
89.1%
0.1%
10.7%
Other
 13,173
85.5%
5.2%
9.3%
Remuneration
 3,751
86.0%
1.5%
12.6%
Total resolutions voted
 38,102 
86.2%
2.7%
11.1%
Total meetings participated
 3,324  Meetings
Not voted
4/28 Meetings/Resolutions
Total eligible (resolutions)
38,130
Total eligible (meetings)
3,328 
Engagement with investee entities
In addition, maintaining open, constructive relationships 
with investee entities improves fundamental investor 
Engagement with the boards of the entities in which 
understanding of the quality of management and the 
we invest is a valuable tool for protecting our interests. 
long-term drivers of value, including ESG risks and 
Such contact is helpful in establishing a climate of 
opportunities.
long-term asset stewardship, with active oversight 
from investors and accountability of management to 
We engage directly with key investee entities to drive 
the provider of capital. 
improvement in corporate governance practices and 
better understand the strategic risks and opportunities 
Engagement is also used as a complement to voting 
to which these organisations are exposed. This direct 
activities to improve analysis and the signalling power of 
engagement is conducted mainly with Australian 
the votes cast.
domiciled companies, given the size and influence of 
our investments in our local market, access to company 

---

31
boards and practical considerations. In international 
Participating in collaborations and industry networks, 
markets, we leverage the engagement activities of our 
including the International Corporate Governance 
investment managers.
Network (ICGN), GRESB, and Focusing Capital on the 
02
Long Term helps us to address these complex challenges. 
in H
Our engagement meetings are tailored to each 
v o
e w w
These structured multi-stakeholder initiatives are 
s
organisation. Issues frequently tabled for discussion 
t
complemented by ongoing informal engagement with 
e 
include: board and executive management quality, 
 
leading domestic and international asset owners and fund 
strategic priorities, remuneration, environmental and 
managers in identifying and promoting best practice in 
social issues, culture, and long-term value creation. 
ESG integration.
Over the last five years, we have engaged with board 
representatives from a broad range of Australian listed 
More broadly, we are involved in industry networks that 
companies, including across the ASX20. 
aim to improve system integrity, build new markets 
f I
u n
and advance best practice for institutional investment. 
t v
u e
Where applicable, we partner with investment managers 
r s
e g
These include: the Thinking Ahead Institute, the 
tin
to coordinate engagement activities with investee 
e g f
Standards Board for Alternative Investments (SBAI), 
n
entities to ensure we communicate a consistent and 
e o
the Institutional Limited Partners Association (ILPA), 
r r t
a
mutually reinforcing message.
ti h
the International Forum of Sovereign Wealth Funds 
o e b
ns o
(IFSWF), the Institutional Investors Roundtable (IIR), the 
e
Ownership rights in private markets
n
f A e
Pacific Pension & Investment Institute, the Australian 
fi
u t o
Where eligible, we typically exercise the right to appoint 
Investment Council (AIC) and 20-20 Investment 
st f 
r
a director to the board of an unlisted entity in which we 
Association. Our staff have taken on leadership roles on 
a  
lia
invest directly. In some cases, such as Melbourne and 
the Board of Trustees of the SBAI, the Board of the IIR, 
ns
Perth Airports and the Port of Melbourne, our staff sit 
the Board of the AIC, and advisory committees of IFSWF, 
as directors. In other cases, such as Edinburgh Airport, 
GRESB and ICGN. 
we have appointed high-quality directors to act on our 
behalf who are either employees of the relevant external 
Portfolio exclusions
manager or suitably qualified third parties selected in 
2 A
Our ESG Policy provides a framework which helps us to 
0 n
consultation with the manager.
1 n
8
determine what entities and sectors are excluded from 
u
-2 a
0 l R
We may also have the right to vote in relation to direct 
the investment portfolio for non-financial reasons.
19 ep
shareholdings in companies or pooled vehicles. In these 
o
Since 2009 we have restricted all managers of directly 
r
situations, voting decisions are managed by our private 
t 
held investments from investing in securities issued by 
 
markets teams. In addition, we participate wherever 
companies that are involved in activities that are limited 
practical in the advisory boards of pooled vehicles that 
by the 2008 Convention on Cluster Munitions or the 1997 
give investors a voice on certain key decisions. 
Anti-Personnel Mines Convention.
Col aboration and contributing to a stronger 
In February 2013 the Board decided to restrict managers 
investment system
of directly held investments from investing in securities 
issued by entities directly involved in the manufacture of 
We have a direct interest in supporting financial markets 
complete tobacco products.
that are stable, transparent and efficient.
Where serious breaches of ESG standards are identified, 
Collaboration with like-minded investors is an efficient 
the Board prefers engagement over exclusion, working 
and effective way of building knowledge and promoting 
with the entity to improve performance. The Board 
best practice.
reserves the option to exclude an investment for the 
The interconnected nature of many of the ESG risks 
most egregious sustained activities where the entity is 
and opportunities faced by long-term investors makes 
unwilling or unable to change its practices. 
collaboration between like-minded investors attractive.
The list of companies excluded from our portfolio under 
our ESG policy is available on our website.

---

32
03
Investment 
performance
Investment environment
Insights from our Chief Investment Officer, Dr Raphael Arndt
Across the financial year, global economic growth was 
The global economy began the financial year showing 
stronger than expected and markets strengthened. 
strong momentum and synchronised growth across most 
However, long-term risks are building. The investment 
major markets. Low inflation, accommodative monetary 
environment was generally positive for financial markets 
policies and low bond yields supported equity markets 
over the last year leading to strong returns, although it 
and delivered exceptionally strong returns to investors 
was a tale of two halves. 
with very little volatility. On top of this, the prospect 
of tax reform and fiscal stimulus in the United States 
provided a further boost. 

---

33
As 2018 unfolded conditions became somewhat less 
This economic backdrop could prove challenging for 
favourable leading to a marked pick-up in market 
financial markets and overall portfolio returns in the year 
volatility with significant falls in asset prices. An 
ahead. Asset prices generally remain elevated despite 
03
pe I
acceleration in wages in the US in February led to 
the volatility seen in the second half of the year, and 
n
r v
concerns of increasing inflation. Tighter monetary policy 
markets do not appear to be pricing in the significant 
f e
orm stm
fed into higher bond yields and falling equity prices. 
risks which lie ahead. 
a e
Around the same time, global economic momentum 
nc nt
The longer the current expansion continues, the greater 
e  
peaked and showed more divergence, with European 
the risk of imbalances or inflationary pressures that 
growth moderating sharply while the US continued to 
central banks will look to contain, potentially leading to a 
show strength following its fiscal package.
classic recession. 
As the year progressed trade concerns moved to centre 
f I
While this risk appears far from imminent, the forward-
u n
stage, with the US imposing tariffs across a range of 
t v
u e
looking nature of financial markets means that asset 
r s
e g
industries and countries and several of the impacted 
tin
values are likely to turn before any economic downturn. 
e g f
countries retaliating. This led to heavy selling of risk 
n
Also complicating the outlook is the fact that expected 
e o
assets in the December quarter. In the new year central 
r r t
a
long-term real returns are low relative to history and 
ti h
banks became generally more accommodative, including 
o e b
become even less attractive when adjusted for cyclical 
ns o
signalling a tolerance for an inflation overshoot. This, 
e
and structural economic risks. 
n
f A e
together with some accommodation in the trade dispute, 
fi
u t o
led markets to rally.
These conditions suggest a moderate exposure to risk 
st f 
r
assets is warranted. Given the uncertain path ahead, it 
a  
l
While economic conditions appear to have peaked for 
ia
is important to maintain portfolio flexibility to allow the 
n
this cycle, monetary policy remains broadly supportive 
s
level of portfolio risk to be adjusted as the increasingly 
of growth in developed markets. Fiscal policy in the US 
uncertain outlook changes.
is expected to support economic growth throughout 2019. 
Beyond the next year the economic outlook becomes 
significantly less certain. The gradual erosion of spare 
2 A
0 n
1 n
capacity in developed markets may lead to inflationary 
8 u
-2 a
pressures, particularly in the US. Setting monetary policy 
0 l R
1
to ensure that the expansion is maintained while capping 
9 epo
inflationary pressures will likely prove challenging for 
rt  
central banks, especially if regional differences persist.

---

34
Future Fund
Mandate: Consumer Price Index plus 4% to 5% per annum over the long term with an acceptable 
but not excessive level of risk.
Earnings for 
Return 
$  16.8 billion
11.5%
2018-2019
2018-2019
Earnings since 
Return since 
$ 102.1  billion
8.2% pa
inception
inception
Cash flow 
history
Contributions
Earnings
Withdrawals
Balance
$ 60.5  + $102.1  – $ 0.0  = $ 162.6 
at 30 June 2019
billion
billion
billion
billion
Asset al ocation 
Investments by geography 
at 30 June 2019
at 30 June 2019
Australian equities 
7%
Developed market equities   19%
Australia 20%
Emerging market equities    10%
United States of America   37%
Private equity 
16%
Europe (ex UK) 
 9%
Property 7%
United Kingdom 
5%
Infrastructure & Timberland 8%
Japan 9%
Debt securities 
9%
Developed (other) 
4%
Alternatives 14%
Emerging 16%
Cash 12%
Cumulative 
170
returns 
Future Fund
160
Target Return
150
at 30 June 2019
140
130
120
110
100
90
eturn % 80
70
60
50
Cumulative R 40
30
20
10
0
-10
Jun 2007
Jun 2008
Jun 2009
Jun 2010
Jun 2011
Jun 2012
Jun 2013
Jun 2014
Jun 2015
Jun 2016
Jun 2017
Jun 2018
Jun 2019
Financial Year

---

35
Interpreting the Investment 
In balancing the risk and return aspects of the Fund’s 
Investment Mandate, our primary objectives are to:
Mandate
03
 
\
maximise the value of the Fund over the long term, 
pe In
The Future Fund’s initial Investment Mandate was issued 
which we define as rolling 10-year periods
r v
f e
orm s
to the Board by the responsible Ministers in May 2006.
t
 
\
minimise the risk of significant capital losses along 
m
a e
Until 30 June 2017 the Fund’s Investment Mandate 
the way, with a particular focus on expected downside 
nc nt
was to achieve an average annual return of at least the 
e  
outcomes over rolling three-year periods.
Consumer Price Index (CPI) + 4.5% to 5.5% per annum over 
the long term with an acceptable but not excessive level 
There is a natural tension between these two objectives, 
of risk.
and our investment policy framework has been designed 
to guide resolution of issues like this by formalising our 
F F
u u
A new Investment Mandate came into effect from 
approach to investment risk management in portfolio 
n t
d ur
1 July 2017, which reduced the long-term benchmark 
construction. This framework, along with the broad 
e 
return target to CPI + 4% to 5% per annum, reflecting the 
investment process, are described in greater detail in the 
changed investment environment. 
‘How we invest’ section of this report.
The return objective must continue to be pursued with 
While we publicly report and discuss the performance of 
acceptable but not excessive levels of risk.
the Future Fund at a high level each quarter, outcomes 
The Fund’s Investment Mandate is available at Appendix B.
over these short periods of time are not appropriate 
indicators of the likelihood of achieving the outcomes set 
f I
u n
As the Board pursues the Investment Mandate, it is also 
out in the Mandate over the long term.
t v
u e
r s
required to conduct itself in a manner that:
e g ti
We explicitly reject the concept of ‘peer risk’ (the risk 
n
e g f
n
 
\
is consistent with international best practice for 
of underperforming other institutional investors over 
e o
r r t
a
institutional investment
the short term) as being inconsistent with the mission 
ti h
o e b
and Mandate of the Fund. However, we appreciate that 
ns o
 
\
minimises the impact on the Australian financial 
e
comparisons between the Fund’s return and the returns 
n
f A e
markets
fi
of other funds with similar objectives, both locally and 
u t o
s
 
\
is unlikely to cause a diminution of the Australian 
globally, are valid over the longer term.
t f 
ra  
l
Government’s reputation in financial markets.
ians
2 A
0 n
1 n
8 u
-2 a
0 l R
19 eport  

---

36

---

37
pe In
r v
f e
Delivering returns 
orm stmaencnt
while managing risk
e  
As Australia’s sovereign wealth fund, we recognise 
our investment philosophy, and we further consider 
f I
the responsibility and the challenge of investing 
it a key comparative advantage that significantly 
u n
t v
u e
the Future Fund on behalf of future generations of 
improves our prospects of meeting the Future Fund’s 
r s
e g ti
Australians.
Investment Mandate. Our top-down people look at the 
n
e g f
n
global economy, financial markets and political risk, 
e o
The Investment Mandate of the Future Fund is to 
r r t
a
and think about how this will impact the portfolio. 
ti h
adopt an average return of at least Consumer Price 
o e b
Our bottom-up people look across the world for 
ns o
Index plus 4% to 5% per annum over the long term, 
e
great assets, thinking about whether there is enough 
n
f A e
while taking ‘acceptable but not excessive risk’.
fi
reward for the risk that is required.
u t o
s
As we invest the assets of the Fund, we are highly 
t f 
r
By setting the big picture against local insights we 
a  
l
focused on balancing these risk and return objectives. 
ia
generate a rich and nuanced view of the opportunities 
ns
The Future Fund has exceeded its benchmark target 
and outlook and seek out the best investment ideas 
and been well within its risk tolerance. Over 10 years 
for the targeted risk and return objectives in a given 
the fund delivered 10.4% per annum, exceeding its 
investment environment. 
benchmark of 6.5% per annum. 
Dynamically managing a diversified portfolio
2 A
0
The challenge is to deliver strong returns while 
n
1 n
We aim to build a highly diversified portfolio that is 
8 u
avoiding excessive risk. There are two key elements 
-2 a
as robust to as many plausible future outcomes as 
0 l R
to it: opportunity selection and dynamic portfolio 
1
possible.
9 ep
management.
ort 
We look right through the portfolio to understand the 
 
Focusing on the best opportunities
return drivers of all the assets that we have and make 
Since the Future Fund was established it has focused 
sure that we’re blending those in the right proportions 
on constructing a portfolio that can be as efficient as 
to avoid excessive risk. 
possible at turning risk into return. 
As well as accepting broad market risk we seek 
Our team collectively channels its best ideas, 
out opportunities where we can generate additional 
irrespective of asset class, up to the total portfolio 
returns through skill and investment insights. Those 
to achieve the Fund’s investment objective. 
skills can be in any asset class across the portfolio. 
The intention is to uncover the best investment 
For example, we have a substantial exposure to 
opportunities across all sectors. We avoid fixed asset 
credit because it offers diversifying exposure and an 
allocations which we view as likely to constrain 
opportunity for a skilled manager to add returns. 
our thinking. Instead, we adapt our approach as 
Prospective returns and risks change through time, 
circumstances warrant.
so we manage the portfolio dynamically. We expect 
We bring together the top-down economic and 
to increase risk levels when the expected reward for 
market views and bottom-up asset class insights – 
taking risk is high and to reduce risk levels when the 
we call this being joined up. It is the cornerstone of 
expected reward for taking risk is low.

---

38
Risk positioning
Our outlook on the global economy and markets is 
explored in more detail in our investment environment 
Based on its interpretation of the Investment Mandate, 
report on pages 32-33.
the Board has an appetite for material levels of risk in 
The broad focus of our portfolio construction in 2018-19 
the Future Fund. Nonetheless, in accordance with our 
has been to:
investment process we aim to build a portfolio with some 
degree of resilience to the investment environment. 
 
\
Retain high levels of portfolio flexibility to both 
We seek genuine diversification that achieves greater 
withstand and potentially take advantage of any 
balance in portfolio construction while allocating risk in a 
market dislocations that might arise.
flexible and dynamic manner.
 
\
Be opportunistic and skill-based. Internally, and 
Our view is that real discount rates for risky assets are 
through our external investment managers, we 
low and cash flow growth is expected to be positive but 
aim to add additional return, or reduce risk, through 
moderate over the long term, so expected real returns are 
the application of skill. Strategies that have low 
below average relative to history. When we adjust these 
correlation with risk assets are particularly attractive 
returns for risk, then the expected reward for taking more 
(such as hedge funds, early stage venture capital and 
risk than we do at present is relatively unattractive. This 
alternative risk premia).
trade-off is illustrated in stylised form in the chart below.
Current risk/reward trade-off versus ‘normal’
High
turn
Expected long-term real re
Low
Low
Expected level of risk
High
Normal
Current
Measuring risk
EEE estimates the amount of market exposure we have 
when looking through the whole portfolio.
One of the primary metrics we use to understand and 
Our EEE range for the Future Fund is 45-65. The average 
manage the broad market risk exposure of the Future 
EEE in 2018-19 was 54 and at 30 June 2019 the EEE 
Fund is Equivalent Equity Exposure (EEE).
stood at 56, which is slightly above neutral.

---

39
Future Fund Equivalent Equity Exposure since inception
03
pe In
r v
70
f e
orm stmaencnte 
60
5
4 
50
2
3
F F
u u
n t
d ure 
40
t Equity Exposure
alen
Equiv
30
1
20
f I
u n
t v
u e
r s
e g tin
e g f
10
ne o
r r t
ati h
o e b
Jun 2007
Jun 2008
Jun 2009
Jun 2010
Jun 2011
Jun 2012
Jun 2013
Jun 2014
Jun 2015
Jun 2016
Jun 2017
Jun 2018
Jun 2019
ns o en
Long-term average EEE
Normal operating range
f A efi
u t o
st f 
ra  
lians
The chart above demonstrates how the EEE of the Future 
3  Risk levels were raised further as the European crisis 
Fund has changed through time.
subsided and the President of the European Central 
Bank, Mario Draghi, committed to ‘do whatever it takes’ 
In 2017-18 the Future Fund’s structural risk was increased 
to underwrite the integrity of the Euro. 
2 A
to reflect the reduction in expected returns due to the 
0 n
1 n
8
market environment and the Government issuing a revised 
4  As expected returns declined (given strong market 
u
-2 a
investment mandate. As a result, the normal operating 
performance supported by low interest rates), portfolio 
0 l R
19 e
risk range shifted from 40–60 to 45–65.
risk was gradually reduced to moderately below normal 
por
levels. 
t 
We are currently in the fifth distinct risk-taking regime for 
 
the portfolio since it was established.
5  Risk levels were increased towards more normal 
levels, reflecting the emergence of strong economic 
1  Soon after inception in 2006, the build of the Future 
growth and corporate earnings and central banks 
Fund portfolio was suspended in late 2007 due to 
signalling an extension of accommodative monetary 
concerns over financial stability and the sustainability 
policies, together with the decision to increase the 
of high asset prices, and a very low risk profile was 
Fund’s structural risk appetite.
maintained into the global financial crisis. 
2  Portfolio risk exposure was increased as extraordinary 
and globally coordinated economic policies were 
implemented to fight the crisis. 

---

40
Investment Reviews
quality sector specialist strategies that we believe 
are particularly well placed in today’s environment to 
Listed equities
generate equity alpha and provide niche exposures for the 
total Future Fund. 
Strategy
We believe it is important that risk premia are captured 
The objective of the Listed Equities portfolio is to provide 
and implemented efficiently. We continue to work closely 
a liquid exposure to equity markets that generates 
with select partners to help ensure a balanced risk 
attractive risk-adjusted returns over the long term. 
premia exposure for the aggregate portfolio is achieved.
The portfolio structure has been tailored to benefit 
the risk-return profile of the total Future Fund via an 
enhanced beta sleeve for harvesting risk premia and 
Sector exposure at 30 June 2019
a complementary alpha sleeve for accessing active 
manager skill. 
Energy 5%
Materials 8%
The enhanced beta sleeve systematically harvests equity 
Industrials  
 10%
risk premia through exposure to factors that compensate 
Consumer discretionary 
11%
for undiversifiable risk. The alpha sleeve complements 
Consumer staples 
8%
this approach by investing in a skill based (stock picking) 
Health care 
9%
portfolio, targeting uncorrelated returns from equities 
Real estate 
2%
management.
Financials 20%
The opportunity set for the Listed Equities portfolio 
Information technology 
16%
includes:
Communication services 
9%
Utilities 2%
 
\
Australian, developed and emerging markets
 
\
physical and synthetic equity-related investments.
Region exposure at 30 June 2019
Report
The Listed Equities portfolio was valued at $57.9 billion 
Australia 20%
as at 30 June 2019. The portfolio, as a percentage of 
United States of America   34%
the total Future Fund, has increased from 32.1% at  
Europe (ex UK)  
 7%
30 June 2018 to 35.5% at 30 June 2019. This increase 
United Kingdom 
2%
in allocation was implemented across all major regions, 
Japan 7%
with a notable increase to emerging markets, reflecting 
Developed (other) 
2%
attractive valuations. Our portfolio remains concentrated 
Emerging 28%
in global developed markets, while we continue to hold 
meaningful exposures to Australia and emerging markets.
Within the enhanced beta sleeve, we have refined the 
implementation of each sub-strategy. During the year, 
Alternatives
we further diversified our allocations to achieve a more 
Strategy
robust balance of long-term equity factor premia and risk. 
The Alternatives portfolio is designed to provide a return 
We continue to maintain a defensive core via our exposure 
stream to the Future Fund that comprises a combination 
to high quality and value risk premia.
of active management skill based strategies and 
Within the alpha sleeve, our long/short portfolio 
exposure to other diversifying risk premia. The returns 
continues to maintain a low exposure to equity market 
of the portfolio should have little to no relationship with 
risk and an emphasis on stock picking skill. During the 
those produced from the other portfolio sectors or capital 
year, we increased our exposure to a number of high 
markets in general.

---

41
The opportunity set includes:
investing with the handful of truly exceptional managers 
available to institutional investors. This manager set 
 
\
a broad variety of specialised active management 
will evolve and we see signs that returns to managers 
03
strategies within traditional asset classes
who are experts in using non-traditional techniques are 
pe In
r v
 
\
exposure to ‘alternative’ or non-traditional risk premia 
increasingly consistent and differentiating. We have 
f e
orm st
such as momentum, volatility and insurance
focused our investment and research activity accordingly.
m
a e
nc n
Activity within the largest sub-sector, macro-directional 
t
 
\
other managers or mandates which do not align well 
e  
with the principal sector strategies.
strategies, remained low. Performance was reasonably 
strong and the flexibility of managers in this space to 
The mandate flexibility of such strategies increases 
navigate through changing environments for risk assets, 
the Fund’s exposure to diversifying active management 
in particular through the last quarter of 2018-19, was 
F F
return. We address the complexity and breadth of the 
u u
pleasing. We continue to run an active seeding program 
n t
Alternatives portfolio through a hybrid approach of direct 
d ur
and to position the portfolio in a way which helps us 
e 
manager relationships supplemented by activity with 
identify and provide capital to mispriced assets following 
investment platforms operated by a handful of strategic 
potential market dislocations. We graduated one seeded 
partners. These partners act as an extension of our team 
manager to a direct relationship during the period 
and provide us with operational leverage.
and have high conviction that this will become a key 
We recognise that active manager skill is scarce, but also 
relationship over time.
valuable as the ability to capture skill helps maximise 
The multi-strategy sub-sector is concentrated into our 
f I
the risk-adjusted performance of the total Fund. We 
u n
highest conviction managers. This sub-sector performed 
t v
u e
take a value based approach to evaluating the costs of 
r s
strongly with minimal sensitivity to the direction of risk 
e g ti
acquisition of such return streams – that is, management 
n
assets. We continue to seek opportunities to grow our 
e g f
n
and performance fees. Our activity is centred on finding 
e o
exposure to these well-resourced managers.
r r t
a
the right balance between identifying and accessing 
ti h
o e b
managers, strategies and organisations which can 
ns o e
persistently add value while testing the market for 
n
f A e
Strategy exposure at 30 June 2019
fi
more economic access points to the same or similar 
u t o
s
pattern of returns.
t f 
ra  
lia
Report
ns
At 30 June 2019 the Alternatives portfolio was valued at 
Multi-strategy/Relative value 16%
$22.0 billion, representing 13.5% of the Future Fund.
Macro-directional 
 65%
Alternative risk premia  
 20%
After significant change over the last five years, new 
manager investing activity has come down and the focus 
2 A
0 n
1 n
is on maximising high conviction core relationships as 
8 u
-2 a
well as identifying outstanding new opportunities.
0 l R
19 ep
The portfolio largely delivered on its objective, providing 
Region exposure at 30 June 2019
ort 
positive returns while also offering significant protection 
 
to unexpected tail events in global equity markets. This 
Australia 3%
was pleasing in a year when returns to the broader active 
United States of America   48%
management, hedge fund and risk premia universe of 
Europe (ex UK)  
 21%
strategies were challenged. Defensive strategies were 
United Kingdom 
8%
also challenged by the sharp rise in risk asset returns 
Japan 6%
during 2019.
Developed (other) 
2%
The active management industry, including hedge funds, 
Emerging 13%
is evolving. We have low conviction that broad industry 
returns will improve, so our strategy concentrates on 

---

42
Report
Debt
At 30 June 2019 the Debt portfolio was valued at 
Strategy
$14.6 billion, representing 9.0% of the Future Fund.
The Debt opportunity set is global and includes all credit-
2018-19 was another positive year for debt markets. 
oriented investment products and strategies including:
Credit market fundamentals remained generally robust, 
 
\
corporate credit
with low credit spreads offsetting modest leverage 
increases, and default levels remained low. However, 
 
\
securitised credit
concerns about future global economic growth, the path 
 
\
private debt, including corporate and mortgage loans
of interest rates, and trade disputes were enough for 
investors to retreat from risk assets, including credit, at 
 
\
emerging markets debt, denominated in both ‘hard’ 
the end of 2018. The US Federal Reserve’s pivot to easier 
and local currencies
monetary policy in early 2019 encouraged investors to 
 
\
distressed and special situations credit.
take risks. Ultimately credit markets ended the fiscal 
year about where they began, providing a year of interest 
The breadth and complexity of credit sub-sectors calls 
income for investors who held firm through the volatility. 
for our strategy, with few exceptions, to be implemented 
through external managers who oversee discretionary 
As a result, debt markets generated moderate returns, 
mandates.
and so did our portfolio, with gains across all sub-sectors. 
Debt mandates and manager skillsets may be broad and 
Consistent with a view we have held for some time, we 
multi-sector in nature or focused on specific themes, 
continue to believe we are in the later stages of the credit 
regions or sectors. Our portfolio has multiple levers 
cycle. We do not expect a plethora of defaults in the near 
through which we can dynamically access attractive 
term, but as and when conditions change, lenders may not 
opportunities as market conditions fluctuate.
be as well protected as in previous cycles. In addition to 
historically high leverage levels, nearly all new issuance 
Interest rate positioning is managed at the total fund 
in broadly syndicated US and European corporate credit 
level and is thus not a key component of Debt portfolio 
is ’covenant-lite’, which means that lenders have few 
construction. Instead, the Debt portfolio’s primary role 
avenues to properly monitor and arrest the decline of 
is return generation, with a core of interest income 
struggling borrowers.
ideally augmented by capital gains over time. We aim to 
deliver strong risk-adjusted returns with more downside 
protection than equity-orientated investments.

---

43
At the same time, most credit sectors see pricing at 
or near historically tight spread levels, leaving little 
Strategy exposure at 30 June 2019
compensation for the added risk of such unfavourable 
03
structures. While each bond or loan is unique, we 
pe In
Private debt 
44%
r v
question if credit markets in general are adequately 
f e
orm s
Sub-investment  
t
compensating investors for the risk of default levels and 
m
grade corporate  
 25%
a e
potentially lower recoveries on defaulted bonds or loans.
nc n
Mortgage backed securities  3%
t
e  
Other securitised 
6%
Our strategy remains one of discipline, patience and 
Emerging markets debt 
20%
preparation. We have continued to reduce exposure, 
Cash and other 
1%
particularly to liquid corporate credit and mortgage-
backed securities.
F F
u u
n t
Our private debt program remains the largest debt sub-
d ur
Region exposure at 30 June 2019
e 
sector allocation. This program provides capital to a range 
of borrowers in developed markets around the world, with 
Australia 4%
lending secured by collateral such as corporate assets 
United States of America   43%
and cash flows, property and infrastructure. We have built 
Europe (ex UK)  
 13%
partnerships with several managers and plan to maintain 
United Kingdom 
11%
this exposure while providing additional capital prudently 
Japan 1%
as conditions warrant.
f I
u n
Developed (other) 
4%
t v
u e
We continue to believe that emerging market sovereign 
r
Emerging 24%
s
e g ti
and corporate bonds can provide valuable portfolio 
n
e g f
n
diversification benefits. However, developments in global 
e o
r r t
a
trade and other macroeconomic conditions and the 
ti h
o e b
potential for volatility in capital flows continue to lead us 
ns o e
to approach this sub-sector with some caution.
n
f A efi
u t o
Our distressed debt, investment grade and high yield 
st f 
r
credit and mortgage-backed securities allocations 
a  
lia
are focused as much as possible toward idiosyncratic 
ns
opportunities instead of general ’credit beta’. We 
continue to harvest gains from these sub-sectors as 
value is realised.
2 A
0 n
1 n
8 u
-2 a
0 l R
19 eport  

---

44
Australian infrastructure exposures, given their ability 
Infrastructure and Timberland
to deliver low volatility, inflation linked, Australian dollar 
Strategy
returns, consistent with our portfolio mandate. 
The Infrastructure and Timberland strategy is designed 
We increased our investment in timberland assets in 
to assist the Future Fund in meeting its investment 
Australia and New Zealand this year, focusing on high 
mandate, by providing inflation protection and 
quality assets in the region. We are monitoring the local 
diversification from the broader equities market. These 
market for infrastructure opportunities, but we will remain 
characteristics are also expected to provide downside 
highly selective as the market is very competitive.
protection and lower volatility during periods of market 
downturn. We invest across the risk return spectrum, 
Unlisted overseas assets represent 32.0% of the 
with our core assets considered more defensive, and our 
Infrastructure and Timberland portfolio and are primarily 
opportunistic assets expected to deliver a higher level of 
located in developed markets. Against a market backdrop 
return. This reflects our investment belief that a return 
of strong demand for global infrastructure and timberland 
premium exists for illiquidity and complexity and active 
assets and low interest rates, we have seen transaction 
asset management is required to deliver this premium.
processes being well supported. During the year we 
took advantage of this opportunity to further reduce 
We have a long-term partnership approach with our 
our exposure to core assets, in particular our interest 
managers and have the flexibility to access unlisted 
in Gatwick Airport. Our investment in Gatwick Airport 
opportunities across a combination of pooled funds, co-
has delivered excellent returns and demonstrates the 
investments, and direct asset mandates. We also invest 
success of our partnership approach with managers and 
in listed infrastructure, which we expect to provide 
our broader co-investment program. Notwithstanding 
similar characteristics to unlisted infrastructure over 
the increasing level of capital being allocated to 
the longer term. 
opportunistic infrastructure, we continue to believe 
that active managers can deliver an appropriate return 
Report
premium and we supported capital raisings by existing 
At 30 June 2019 we had $12.2 billion of capital 
managers during the year. 
invested in the Infrastructure and Timberland portfolio, 
Our listed infrastructure strategy currently represents 
representing 7.5% of the Future Fund. 
23.1% of the Infrastructure and Timberland portfolio. 
Unlisted Australian assets comprise 44.9% of the 
Listed infrastructure has outperformed the broader 
Infrastructure and Timberland portfolio. Melbourne 
equities market over the financial year, and in this context 
Airport is our largest individual exposure and continues to 
we continue to monitor valuation levels. The current level 
experience significant growth in international passenger 
of our listed infrastructure exposure reflects our relative 
numbers, particularly from Asia. We remain attracted to 
view of its attractiveness versus both global equities and 
unlisted infrastructure. 

---

45
We are monitoring a number of themes with our managers, 
Property
including technological disruption and evolving 
regulation, which have the potential to impact the 
Strategy
03
infrastructure asset class. We are also focusing on our 
pe In
We invest in direct and listed property across the globe. 
r v
co-investment program with overseas managers, which 
f e
orm s
Our property strategy is as follows: 
t
allows us to influence portfolio construction as well as 
m
a e
lowering average fees.
nc n
 
\
Access the underlying property via the optimum entry 
t
e  
point.
Sector exposure at 30 June 2019
 
\
Use dynamic and flexible mandates which enable the 
portfolio to be positioned to meet the current market 
conditions. 
F F
u u
n t
Airports 35%
d u
 
\
Invest with high-quality aligned managers that 
re
Electricity, oil & gas 
 29%
 
understand the macro environment, and are able to 
Transport 17%
identify best relative value across markets and the 
Timberland 11%
risk spectrum.
Water 3%
Communications 4%
 
\
Our listed exposure seeks to provide a diversified, 
global listed property exposure. The risk and returns 
are expected to be in line with the broad market over 
f I
u n
the long term. The liquidity of the listed market also 
t v
u e
Region exposure at 30 June 2019
provides us the opportunity to express an investment 
r s
e g tin
strategy more quickly and at a lower cost than the 
e g f
n
direct market. 
e o
r r t
at
Australia 46%
i h
o
Report
e b
n
United States of America   27%
s o en
Europe (ex UK)  
 5%
At 30 June 2019 we had $10.9 billion of capital invested 
f A efi
in property, representing 6.7% of the Future Fund. 
u t o
United Kingdom 
12%
st f 
Developed (other) 
10%
ra  
Unlisted assets comprise 72% of the property portfolio. 
lian
The unlisted property market remains strong, driven by 
s
strong fundamentals, low base rates, strengthening 
debt availability, and a weight of capital searching for 
investment opportunities. Valuations across several 
markets and sectors remain close to historical highs. We 
2 A
remain cautious over the medium term that the monetary 
0 n
1 n
policy cycle and geopolitical risks remain elevated. 
8 u
-2 a
0 l R
19 eport  

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46
We undertook a review of our property strategy during 
As we move forward through the cycle we will be 
the year. This review focused on actively repositioning 
selectively adding new managers that are positioning 
the portfolio to ensure it is well constructed for the 
themselves to take advantage of market corrections. 
current environment. A key focus of the strategy is to 
Additionally, we are investigating real estate technology 
reduce exposure to late cycle investments and to identify 
companies and will continue to increase our investments 
and selectively invest in best-in-class managers and 
in secular themes such as senior housing and logistics. 
strategies that have a proven track record of performing 
Our listed property strategy currently represents 28% 
well at this stage in the cycle.
of the property portfolio. Consistent with our unlisted 
We have taken advantage of favourable market 
property portfolio, we have selectively sold listed assets 
conditions to sell assets where business plans are 
over the year where markets have performed strongly and 
complete and have positioned our direct portfolio to 
valuations are not as compelling. Our current strategy 
be materially underweight compared with a traditional 
in listed property is to have a broad market exposure 
allocation to the sector. 
across developed markets. The level of our listed property 
exposure reflects our relative view of its attractiveness 
We have tailored our current portfolio around four key 
verses global equities and unlisted property.
characteristics, namely: 
 
\
Defensive investments: mandates in which returns are 
underpinned by reliable, stable income streams.
Sector exposure at 30 June 2019
 
\
Secular growth: mandates where returns are 
Retail 32%
supported by favourable thematics or demographics 
Office 
 16%
including continued demand for global logistics 
Industrial  
 11%
facilities and an ageing population. 
Residential 14%
 
\
Special situations: specific and one-off opportunities 
Diversified 15%
identified as a result of distress or pricing dislocation.
Seniors living 
5%
Healthcare 3%
 
\
Value-add: global value mandates, where managers 
Hospitality 4%
are able to assess relative risk and return across 
Other 2%
markets. 
Our direct portfolio construction reflects that real estate 
is inherently cyclical and granular, with different sectors 
Region exposure at 30 June 2019
and regions in and out of favour at any given moment. 
We retain a material weighting to the US that provides 
Australia 7%
us with strong cash flows underpinned by relatively 
United States of America   61%
inexpensive debt.
Europe (ex UK)  
 11%
United Kingdom 
7%
Japan 4%
Developed (other) 
7%
Emerging 4%

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47
Private Equity
Given this backdrop, our core areas of focus remain 
the funding of innovation, disruptive business models 
Strategy
and small company growth across both developed 
03
and emerging markets. We continue to look for highly 
pe In
Our private equity strategy reflects our view that the 
r v
disciplined managers with (among other attributes) 
f e
asset class fulfils two functions within the Future Fund’s 
orm st
experience in generating strong returns in volatile 
m
investment portfolio.
a e
economic environments and which provide good access 
nc nt
The first is to invest in high ‘alpha’ opportunities, where 
e  
to co-investment opportunities. We are focused on 
we believe we can earn a significant premium over 
alternative, more innovative and less crowded means of 
similar but more liquid public market equity investments. 
getting capital to work in private companies.
Most of these investments would fall in the buyout, co-
investment or secondaries categories across developed 
We continue to believe that many segments of the 
F F
u u
market are not offering sufficient return for the risks we 
n t
and emerging markets.
d ur
are expected to take, which is leading us to look for more 
e 
The second function is to expose the Fund to investment 
idiosyncratic return opportunities.
themes that it cannot readily gain exposure to through 
other more liquid investments. This includes themes such 
as exposing the portfolio to innovative and disruptive 
Strategy exposure at 30 June 2019
companies (venture and growth), companies in financial 
difficulty that require capital to undertake financial 
restructurings and/or operational turnarounds (distressed 
f I
u n
t v
opportunities), and funding idiosyncratic growth within 
u e
Buyout 35%
r s
e g t
small companies, particularly in sectors or geographies 
i
Distressed  
 2%
n
e g f
where alternative funding options are scarce (venture 
n
Secondaries 2%
e o
r r t
growth equity). 
a
Venture and growth 
61%
ti h
o e b
n
Report
s o en
f A e
At 30 June 2019 we had $25.7 billion of capital invested 
fi
u t o
s
in the Private Equity portfolio, representing 15.8% of the 
t f 
ra  
Future Fund. 
Region exposure at 30 June 2019
lians
As the current economic expansion entered into its tenth 
year, the private equity market continued to make new 
Australia 4%
deals, deliver exits and raise capital at near record levels. 
United States of America   61%
The heavy competition for assets and increasing volumes 
Europe (ex UK)  
 9%
United Kingdom 
6%
2 A
of capital, across both debt and equity, into the market 
0 n
Developed (other) 
9%
1 n
since 2014 has had the inevitable effect of increasing 
8 u
-
Emerging 11%
2 a
asset prices to all time highs. 
0 l R
19 eport  

---

48
Currency
Performance
As discussed on page 25 we explicitly manage the size 
At 30 June 2019 the Future Fund delivered a 10-year 
and composition of the foreign currency exposures in the 
return of 10.4% per annum, exceeding its target of 
portfolio rather than allowing them to be shaped by our 
6.5% per annum.
underlying investments.
The Fund stood at $162.6 billion at 30 June 2019 with 
At 30 June 2019, we held an exposure to foreign 
investment returns adding $102.1 billion to the seed 
developed market currencies equivalent to 25.8% of the 
capital from the Australian Government.
total Future Fund. We expect our basket of developed 
The Fund returned 11.5% in 2018-19 adding $16.8 billion 
market currencies to diversify the portfolio against broad 
in earnings.
market risk and generate liquidity in adverse conditions.
Investment returns to 30 June 2019 are shown below, 
We also held an exposure of 15.1% of the Future Fund to 
together with the target benchmark return set by the 
emerging market currencies on 30 June 2019. We expect 
Investment Mandate.
a diversified exposure to emerging market currencies to 
deliver a modest excess return through some combination 
Given the Future Fund’s Investment Mandate requires 
of gradual real effective exchange rate appreciation and/
us to take acceptable but not excessive risk, when 
or positive real interest rate differentials relative to the 
assessing our overall performance we look closely at 
Australian dollar. Given that we expect its performance to 
the level of risk we took in the portfolio. Capturing risk 
be uncorrelated with broad market risk over the long term, 
in a single number is problematic, but the table shows 
we consider our basket of emerging market currencies to 
the level of realised volatility in the portfolio. While not 
be an attractive risk-adjusted exposure at portfolio level.
perfect, this measure of risk is the standard, and perhaps 
best understood, industry measure.
Alongside the level of realised volatility we also  
report the Sharpe ratio, a measure of calculating the 
risk-adjusted return.
All returns are reported net of costs.
Future Fund returns, benchmark and levels of risk
Period to 30 June 2019
Return (% pa) Target return (% pa) 
Volatility (%)
Sharpe ratio
Inception (May 2006)
8.2
6.7
4.1
1.1
Ten years
10.4
6.5
3.7
2.1
Seven years
11.3
6.3
3.6
2.5
Five years
9.9
5.9
3.8
2.1
Three years
9.8
6.0
3.5
2.3
2018-19 financial year
11.5
5.6
4.4
2.3
Note: 
The Investment Mandate sets a benchmark target return of at least CPI + 4.5% to 5.5% pa to 30 June 2017 and CPI + 4% to 5% pa thereafter.

---

49
Costs
Look-through costs
In addition to direct costs, investment management 
03
Cost management
and performance fee costs incurred indirectly through 
pe In
investment vehicles or where the fund is part of a 
r v
Our use of external investment managers, together with 
f e
orm s
co-mingled group of funds are reported as ‘look-through’ 
t
our commitment to a broadly diversified portfolio and 
m
a e
breadth of investment classes, means that over time our 
costs.
nc nt
costs will generally be higher than those investors with 
e  
The look-through costs are identified by making 
less complex portfolios.
additional enquiries of managers of non-consolidated 
The commitment to genuine diversification is an 
investment vehicles to estimate the underlying 
important facet of our investment strategy and has been 
management and performance fees of these entities.
F F
u u
beneficial to the Fund’s overall performance delivering 
n t
In providing this additional information, we seek to provide 
d ur
strong returns net of costs while reducing volatility. 
e
a full and complete indication of investment management 
 
We are therefore more willing to pay higher fees where 
and performance fee costs.
significant value is added over broad market exposure 
(such as private equity) or for exposures which are truly 
We note that these additional cost disclosures are based 
diversifying (such as hedge funds).
on unaudited estimates and derived using a variety of 
methodologies, particularly with regard to performance 
In asset classes where manager skill is less evident 
fees which may become payable.
(such as listed equities), we have been transitioning the 
f I
u n
portfolio to a cheaper, more passive approach. However, 
We employ a range of performance fee arrangements, 
t v
u e
r
which incorporate the use of high-water marks and 
s
we remain willing to support active management where 
e g tin
we are confident that a manager can reliably add value 
claw-back provisions, to ensure as far as possible that 
e g f
n
performance fees reflect genuine outperformance 
e o
net of fees.
r r t
a
over time.
ti h
o e b
n
Direct costs
s o e
It is important to note that the majority of accrued 
n
f A e
Direct costs, previously reported as management 
performance fees are only paid on realisation of an 
fi
u t o
costs and transaction and operational costs, reflect 
s
investment and therefore it is possible not all accrued 
t f 
ra  
all directly incurred costs associated with the 
fees will ultimately be paid.
lian
management of the Future Fund as reported in the 
s
The additional look-through costs over the last three 
audited financial statements.
years are on the following page.
The Fund’s direct costs over the last three years are on 
the following page. This includes the direct cost ratio 
(direct costs divided by the average net assets for the 
2 A
0 n
financial year).
1 n
8 u
-2 a
Changes in costs over the years reflect changes in the 
0 l R
19 e
size of the Future Fund, investment activity undertaken 
por
during the year, and the accrual and payment of 
t  
performance fees.

---

50
Summary of direct costs and direct cost ratio
2016-17
2017-18
2018-19
Direct costs
$383.1 million
$319.2 million
$311.2 million
Direct cost ratio
0.301%
0.231%
0.203%
Summary of look-through costs
2016-17
2017-18
2018-19
Look-through costs
1.31%
1.34%
1.42%
Cost disclosures under section 81 of the Future Fund Act 2006
Under its statutory arrangements the Board also reports costs in accordance with section 81 
of the Future Fund Act 2006.
Amount debited  Amount debited  Amount debited 
Purpose
2016-17
2017-18
2018-19
Contracts with investment managers
$254,382,038
$291,006,497
$218,414,544
Board remuneration and allowances
$908,032
$852,505
$886,580
Agency remuneration and allowances
$38,842,944
$43,663,298
$46,856,999
Consultants and advisers to the Board and Agency
$16,064,403
$14,339,000
$16,266,996
Agency operations
$23,646,429
$23,564,832
$39,295,413
Note:
All costs reported under section 81 of the Future Fund Act 2006 are reported on a cash basis, whereas the direct costs in the above table include accruals.

---

51
Medical Research Future Fund
Mandate: Reserve Bank of Australia cash rate plus 1.5% to 2.0% per annum over rol ing 10-year 
periods with an acceptable but not excessive level of risk.
03
pe In
r v
f e
orm s
Earnings for 
Return 
tm
$ 0.5 billion
5.2%
2018-2019
2018-2019
a e
nc nt
e  
Earnings since 
Return since 
$ 1.1  billion
4.5% pa
inception
inception
F M
ut e
u d
r i
Cash flow 
Contributions
Earnings
Withdrawals
Balance
e c
 F al R
history
un e
$ 1.1 
$0.3 
$ 9.8
d
$ 9.0  +
–
=
s
at 30 June 2019
ea
billion
billion
billion
billion
rch 
Asset al ocation 
Investments by geography 
f I
u n
at 30 June 2019
at 30 June 2019
t v
u e
r s
e g ti
Australian equities 
3%
n
e g f
n
Developed market equities   8%
Australia 37%
e o
r r t
a
Emerging market equities    5%
United States of America   29%
ti h
o e b
Private equity 
5%
Europe (ex UK) 
 6%
ns o e
Property 5%
United Kingdom 
5%
n
f A efi
Infrastructure 3%
Japan 6%
u t o
s
Debt securities 
24%
Developed (other) 
7%
t f 
ra  
Alternatives 17%
Emerging 11%
lian
Cash 31%
s
Cumulative 
18
returns 
Medical Research Future Fund
17
Target Return
16
2 A
0 n
15
1 n
at 30 June 2019
8
14
u
-2 a
13
0 l R
12
19 e
11
po
10
rt 
9
 
eturn %
8
7
6
5
4
Cumulative R
3
2
1
0
-1
-2
ar 2016
ar 2017
ar 2018
ar 2019
Sep 2015
Dec 2015
M
Jun 2016
Sep 2016
Dec 2016
M
Jun 2017
Sep 2017
Dec 2017
M
Jun 2018
Sep 2018
Dec 2018
M
Jun 2019
Financial Year

---

52
Interpreting the Investment 
At times there may be a conflict between these 
competing objectives because of the so-called 
Mandate
‘endowment trilemma’, whereby:
The Medical Research Future Fund’s Investment 
 
\
higher expected returns and distributions tend to 
Mandate was issued to the Board by the responsible 
increase the risk of losses
Ministers in November 2015 and is available at Appendix 
B and on our website.
 
\
for a given distribution policy increased investment 
risk increases the volatility of distributions
The Mandate asks the Board to generate a return of 1.5% 
to 2.0% per annum above the Reserve Bank of Australia 
 
\
adjusting the distribution policy for a given 
official cash rate over the long term while taking 
investment strategy can either decrease the volatility 
‘acceptable but not excessive risk’. The Board must also 
of distributions or the risk that capital is impaired over 
determine a Maximum Annual Distribution Amount taking 
time, but not both at the same time.
account of:
However, our investment policy framework has been 
designed to guide the resolution of issues like this by 
 
\
the principle that the nominal value of the credits to 
the Fund be preserved over the long term
formalising our approach to investment risk management 
in portfolio construction. This framework, along with the 
 
\
the principle of moderating the volatility of the 
broad investment process, are described in greater detail 
maximum annual distribution.
in the ‘How We Invest’ section of this report.
In the same manner as the Future Fund, the Board is also 
required to conduct itself in a manner that:
Risk positioning
Based on its interpretation of the Mandate, the Board 
 
\
is consistent with international best practice for 
institutional investment
has a moderate appetite for risk in the Medical Research 
Future Fund on average. In accordance with our 
 
\
minimises the impact on the Australian financial 
investment process, we also aim to build a portfolio with 
markets
a relatively high degree of resilience to the investment 
environment. We seek genuine diversification that 
 
\
is unlikely to cause a diminution of the Australian 
Government’s reputation in financial markets.
achieves greater balance in portfolio construction while 
allocating risk in a flexible and dynamic manner.
In managing the Fund’s risk and return requirements 
and our role in declaring Maximum Annual Distribution 
One of the primary metrics we use to understand and 
Amounts, we try to:
manage the broad market risk exposure of the Medical 
Research Future Fund is Equivalent Equity Exposure 
 
\
ensure a high probability of achieving the minimum 
(EEE).
benchmark return over rolling 10-year periods
EEE estimates the ‘look-through’ sensitivity of the 
 
\
control the risk of losses, with a particular focus on 
portfolio to price movements in global equity markets.
expected downside outcomes over rolling three-year 
periods, so as to help preserve the nominal value of 
Our expected EEE range for the Medical Research Future 
contributions over the long term
Fund is 20 to 35. The average EEE in 2018-19 was 27 and 
at 30 June 2019 the EEE stood at 28, which is the middle 
 
\
determine a combined level of investment risk and 
of the range.
an approach to distributions that facilitates relative 
predictability in distributions.

---

53
Investment Reviews
During the year, this was diversified via the 
implementation of an enhanced beta sleeve to capture 
a more robust balance of long-term equity factor premia 
03
Listed equities
and risk within the portfolio. We believe it is important 
pe In
r v
Strategy
that risk premia are captured and implemented efficiently 
f e
orm st
and continue to work closely with select partners to help 
m
The objective of the Listed Equities portfolio is to provide 
a e
ensure the desired risk premia exposure for the total 
nc n
a liquid exposure to equity markets that generates 
t
e  
attractive risk-adjusted returns over the long term. The 
Medical Research Future Fund is achieved.
portfolio structure has been tailored to benefit the risk-
The exposure to alpha via long/short active equity 
return profile of the total Medical Research Future Fund 
strategies remained steady over the year.
via an enhanced beta sleeve for harvesting risk premia 
F M
u
and a complementary alpha sleeve for accessing active 
t e
u d
r i
manager skill. 
e c
Sector exposure at 30 June 2019
 F al R
un
The enhanced beta sleeve systematically harvests equity 
e
d
Energy 5%
se
risk premia through exposure to factors that compensate 
a
Materials 9%
rc
for undiversifiable risk. The alpha sleeve complements 
h 
Industrials  
 10%
this approach by investing in a skill based (stock picking) 
Consumer discretionary 
11%
portfolio, targeting uncorrelated returns from equities 
Consumer staples 
6%
management.
Health care 
9%
f I
u n
t v
u
The opportunity set for the Listed Equities portfolio 
Real estate 
5%
e
r s
e g t
includes:
Financials 21%
in
e g f
n
Information technology 
14%
e o
 
\
Australian, developed and emerging markets
r r t
Communication services 
7%
ati h
o e b
 
\
physical and synthetic equity-related investments.
Utilities 3%
ns o en
Report
f A efi
u t o
s
The Listed Equities portfolio was valued at $1.5 billion 
Region exposure at 30 June 2019
t f 
ra  
as at 30 June 2019, reflecting 15.2% of the Medical 
lian
Research Future Fund.
s
Australia 21%
Our portfolio remains concentrated in developed markets 
United States of America   34%
while we continue to hold meaningful exposures to 
Europe (ex UK)  
 5%
Australia and emerging markets. For cost efficiency and 
United Kingdom 
3%
flexibility as the Fund has grown, we have maintained 
Japan 3%
2 A
0 n
exposure to market beta in domestic and offshore 
Developed (other) 
4%
1 n
8 u
Emerging 29%
-
markets using both physical assets and futures. 
2 a
0 l R
19 eport  

---

54
Alternatives
The Alternatives allocation in the Medical Research 
Future Fund fulfils a similar role to that of the Future 
Strategy
Fund, which is the provision of a positive return stream 
The opportunity set includes:
which offers a diversification benefit at the total Fund 
level. The weightings to sub-sectors and the allocations 
 
\
a broad variety of specialised active management 
within those subsectors will be slightly different due to 
strategies within traditional asset classes
the sequencing of investments as well as the different 
risk profiles of the two funds.
 
\
exposure to ‘alternative’ or non-traditional risk premia 
such as momentum, volatility and insurance
2018-19 saw limited investment activity, primarily 
concentrated on opportunities in the alternative risk 
 
\
other managers or mandates which do not align well 
with the principal sector strategies.
premia subsector. Following a significant cash flow in 
July 2019, we expect significant investment activity in 
These strategies increase the Fund’s exposure to 
2019-20. The increased scale will allow us to bring the 
diversifying active management return. The Medical 
expected profile closer to the more mature portfolio 
Research Future Fund’s Alternatives portfolio has a 
held by the Future Fund.
similar profile to the Future Fund and is made up of 
a subset of the same managers. Differences in the 
portfolios exist due to the different establishment date of 
Strategy exposure at 30 June 2019
the two funds, as well as the size and specific portfolio 
objectives of the funds.
We recognise that active manager skill is scarce, but also 
valuable as the ability to capture skill helps maximise 
Multi-strategy/Relative value 21%
the risk-adjusted performance of the total Fund. We 
Macro-directional 
 44%
take a value based approach to evaluating the costs of 
Alternative risk premia  
 35%
acquisition of such return streams–that is, management 
and performance fees. Our activity is centred on finding 
the right balance between identifying and accessing 
managers, strategies and organisations who can 
persistently add value while testing the market for 
Region exposure at 30 June 2019
more economic access points to the same or similar 
pattern of returns.
Australia 5%
Report
United States of America   45%
The Alternatives portfolio was valued at $1.6 billion 
Europe (ex UK)  
 20%
as at 30 June 2019, representing 16.8% of the Medical 
United Kingdom 
7%
Research Future Fund.
Japan 6%
Developed (other) 
4%
Emerging 14%

---

55
which contains many, but not all, of the same sub-
Debt
sectors as the Future Fund, but with a heavier tilt toward 
Strategy
investment grade credit.
03
pe In
The Debt opportunity set is global and includes all credit-
The Debt portfolio generated modest returns in 2018-
r v
f e
oriented investment products and strategies including:
orm s
19, with gains coming across all sub-sectors. A fairly 
tm
sanguine risk environment, especially in the second 
a e
 
\
corporate credit
nc n
half of the fiscal year, provided meaningful tailwinds for 
t
e  
 
\
securitised credit
credit markets.
 
\
private debt, including corporate and mortgage loans
In 2018-19 we committed modest amounts of capital 
to distressed and middle market private corporate 
 
\
emerging markets debt, denominated in both ‘hard’ 
F M
credit funds, and we intend to add at least one more 
u
and local currencies
t e
u d
commitment to a distressed-debt fund in 2019-20 as we 
r i
e c
 
\
distressed and special situations credit.
 F a
continue to diversify the Fund’s range of mandates.
l R
un e
The breadth and complexity of credit sub-sectors calls 
d sea
for our strategy to be, with few exceptions, implemented 
rch 
through discretionary mandates.
Strategy exposure at 30 June 2019
Debt mandates and manager skillsets may be broad and 
Private debt 
8%
multi-sector in nature or focused on specific themes, 
Investment grade corporate  26%
f I
u n
regions or sectors. Our portfolio has multiple levers 
t v
Sub-investment  
u e
through which we can dynamically access attractive 
grade corporate  
 15%
r s
e g tin
opportunities as market conditions fluctuate.
Mortgage backed securities  10%
e g f
n
Other securitised 
17%
e o
r r t
Interest rate positioning is managed at the total fund 
a
Emerging markets debt 
14%
ti h
o e b
level and is thus not a key component of Debt portfolio 
n
Cash and other 
10%
s o e
construction. Instead, the Debt portfolio’s primary role 
n
f A e
is return generation, with a core of interest income 
fi
u t o
s
ideally augmented by capital gains over time. We aim to 
t f 
Region exposure at 30 June 2019
ra  
deliver strong risk-adjusted returns with more downside 
lian
protection than equity-orientated investments.
s
Australia 29%
Report
United States of America   31%
Europe (ex UK)  
 3%
As at 30 June 2019 the Debt portfolio was valued at 
United Kingdom 
9%
$2.4 billion, representing 24.3% of the Medical Research 
Japan 3%
2 A
Future Fund. 
0 n
Developed (other) 
12%
1 n
8 u
-
The Fund’s mandate has a lower risk profile than the 
Emerging 14%
2 a
0 l R
1
Future Fund. As a result, we have built a debt portfolio 
9 eport  

---

56
Infrastructure
Strategy
The infrastructure strategy is designed to assist 
the Medical Research Future Fund in meeting its 
Sector exposure at 30 June 2019
Investment Mandate, by providing inflation protection and 
diversification from the broader equities market. 
We have commenced building a globally diversified 
Airports 5%
exposure to unlisted infrastructure, initially leveraging 
Electricity, oil & gas 
 58%
existing manager relationships to access attractive risk 
Transport 20%
adjusted returns. 
Water 4%
Communications 13%
We also invest in listed infrastructure, which we 
expect to provide similar characteristics to unlisted 
infrastructure over the longer term. Our listed 
infrastructure strategy provides an opportunity to access 
Region exposure at 30 June 2019
liquid exposures based on pricing relativities. This 
strategy is also used to provide proxy exposure while we 
build our unlisted infrastructure portfolio.
Australia 6%
Report
United States of America   54%
Europe (ex UK)  
 14%
As at 30 June 2019 we had $302 million of capital 
United Kingdom 
3%
invested in infrastructure, representing 3.1% of the 
Japan 7%
Medical Research Future Fund. 
Developed (other) 
16%
We have made three commitments to unlisted 
infrastructure funds. These funds focus on global 
opportunistic strategies, consistent with our view that 
opportunistic infrastructure will provide attractive risk 
adjusted returns in a competitive, low interest rate 
environment. 
We expect the unlisted Infrastructure portfolio to grow 
over time. We continue to monitor the market for access 
to Australian and core exposures and will consider these 
selectively based on relative value.
During the year we initiated a passive global listed 
Infrastructure portfolio. While we expect to continue to 
have a listed infrastructure exposure over the longer term, 
it is likely to reduce gradually as we build our unlisted 
infrastructure exposure. 

---

57
Property
Strategy
03
pe In
Our strategy in direct property for the Medical Research 
r v
f e
Future Fund involves a concentrated build out of our 
orm s
Sector exposure at 30 June 2019
tm
highest conviction ideas. This focuses on mandates 
a e
nc n
where returns are supported by favourable thematics 
Retail 17%
t
e  
and where our global managers can assess relative 
Office 
 19%
value across markets, ultimately providing superior risk-
Industrial  
 6%
adjusted returns.
Residential 17%
Diversified 21%
We also invest in listed property. Our listed exposure 
F M
Healthcare 5%
ut e
seeks to provide a diversified, global listed property 
u d
Hospitality 4%
r i
e c
exposure that is liquid. The risk and returns are expected 
 F a
Other 11%
l R
u
to be in line with the broad market over the long term. 
n e
d sea
Report
rch 
Region exposure at 30 June 2019
As at 30 June 2019 we had $474 million of capital 
invested in property, representing 4.9% of the Medical 
Research Future Fund. 
Australia 3%
f I
United States of America   64%
u n
t v
The Fund’s Property portfolio build continued during the 
u e
Europe (ex UK)  
 8%
r s
e g t
year. We made an investment alongside one of our highest 
i
United Kingdom 
4%
n
e g f
conviction managers in the US.
n
Japan 7%
e o
r r t
a
We also initiated a passive global listed property portfolio 
Developed (other) 
11%
ti h
o e b
Emerging 2%
n
during the year. While we expect to continue to have a 
s o en
listed property exposure, it is partly being used as a proxy 
f A efi
while we build our unlisted property exposure.
u t o
st f 
ra  
lians
2 A
0 n
1 n
8 u
-2 a
0 l R
19 eport  

---

58
Private Equity
Strategy
We are continuing to build a portfolio of private equity 
exposure for Medical Research Future Fund, the majority 
Strategy exposure at 30 June 2019
of which will come from existing manager relationships.
Report
As at 30 June 2019 we had $458 million of capital 
Buyout 13%
invested in private equity, representing 4.7% of the 
Secondaries 82%
Medical Research Future Fund. 
Venture and growth 
5%
The heavy competition for assets and increasing volumes 
of capital, across both debt and equity, into the market 
since 2014 has had the effect of increasing asset prices 
to all-time highs. 
Region exposure at 30 June 2019
Given this backdrop, our core areas of focus remain 
the funding of innovation, disruptive business models 
and small company growth across both developed 
Australia 6%
and emerging markets. We continue to look for highly 
United States of America   61%
disciplined managers with (among other attributes) 
Europe (ex UK)  
 10%
experience in generating strong returns in volatile 
United Kingdom 
5%
economic environments and who provide good access to 
Developed (other) 
6%
co-investment opportunities but in doing so are focused 
Emerging 11%
on alternative, more innovative and less crowded means 
of getting capital to work in private companies.
We continue to believe that many segments of the 
market are not offering sufficient return for the risks we 
are expected to take, which is leading us to look for more 
idiosyncratic return opportunities.

---

59
Medical Research Future Fund returns and target benchmark
Period to 30 June 2019
Return (% pa)
Target return (% pa) 
03
pe In
From inception
4.5
3.0
r v
f e
orm st
Three years
4.9
3.0
m
a e
nc n
2018-19 financial year
5.2
3.0
t
e  
Currency
Costs
F M
As discussed on page 25, we explicitly manage the size 
Cost management
ut e
u d
and composition of the foreign currency exposures in the 
r i
e c
Our use of external investment managers, together with 
 F al R
portfolio rather than allowing them to be shaped by our 
u
our commitment to a broadly diversified portfolio and 
n e
underlying investments.
d s
breadth of investment classes, means that over time our 
ear
At 30 June 2019, we held an exposure to foreign 
costs will generally be higher than those investors with 
ch 
developed market currencies equivalent to 13.1% of 
less complex portfolios.
the total Medical Research Future Fund. We expect our 
The commitment to genuine diversification is an 
basket of developed market currencies to diversify the 
important facet of our investment strategy and has been 
f I
u n
portfolio against broad market risk and generate liquidity 
t v
beneficial to the Fund’s overall performance delivering 
u e
in adverse conditions.
r s
e g t
strong returns net of costs while reducing volatility.
in
e g f
We also held an exposure of 6.2% of the Fund to 
n
We continue to closely monitor costs in the asset classes 
e o
r r t
emerging market currencies at 30 June 2019. We expect 
a
in which we invest, reviewing the expected returns and 
ti h
o
a diversified exposure to emerging market currencies to 
e b
n
costs of implementing the investment strategy on an 
s o
deliver a modest excess return through some combination 
en
ongoing basis. In negotiating terms, we focus on securing 
f A e
of gradual (but incremental) real effective exchange rate 
fi
arrangements that offer value for money for the skills 
u t o
appreciation and/or positive real interest rate differentials 
st f 
and resources applied, that are competitive relative to 
ra  
relative to the Australian dollar. 
li
other managers in the sector and that provide for strong 
ans
Performance
alignment between managers and our organisation.
In 2018-19 the Medical Research Future Fund generated 
Every decision we make in relation to the portfolio is 
an investment return of 5.2%, exceeding its target 
considered having regard to the returns and risks net of all 
benchmark of 3.0% per annum.
costs, and all returns we report are always net of all costs.
2 A
0 n
Direct costs
1 n
Since inception the Fund has delivered a return of 4.5% per 
8 u
-2 a
annum, exceeding its target benchmark of 3.0% per annum.
Direct costs, previously reported as management costs 
0 l R
19 e
and transaction and operational costs, reflect all directly 
p
The Fund received a contribution of $2.3 billion from the 
or
incurred costs associated with the management of the 
t 
Australian Government on 10 July 2018, and at 30 June 
 
2019 was valued at $9.8 billion. 
Medical Research Future Fund.
The Fund’s direct costs over the last three years are 
shown on the following page. This includes the direct 
cost ratio (direct costs divided by the average net assets 
for the financial year).

---

60
Changes in costs over the years reflect changes in the 
In providing this additional information, we seek to provide 
size of the Medical Research Future Fund, investment 
a full and complete indication of investment management 
activity undertaken during the year, and the accrual and 
and performance fee costs.
payment of performance fees.
We note that these additional cost disclosures are based 
We continued to build out and diversify the Fund’s 
on unaudited estimates and derived using a variety of 
portfolio during the year. The fund is now invested across 
methodologies, particularly with regard to performance 
all asset classes.
fees which may become payable.
Look-through costs
We employ a range of performance fee arrangements, 
which incorporate the use of high-water marks and 
In addition to direct costs, investment management 
claw-back provisions, to ensure as far as possible that 
and performance fee costs incurred indirectly through 
performance fees reflect genuine outperformance 
investment vehicles or where the fund is part of a co-
over time.
mingled group of funds are reported as ‘look-through’ costs.
It is important to note that the majority of accrued 
The look-through costs are identified by making 
performance fees are only paid on realisation of an 
additional enquiries of managers of non-consolidated 
investment and therefore it is possible not all accrued 
investment vehicles to estimate the underlying 
fees will ultimately be paid.
management and performance fees of these entities.
The additional look-through costs over the last three 
years are shown below.
Summary of direct costs and direct cost ratio
2016-17
2017-18
2018-19
Direct costs
$10.1 million
$11.8 million
$14.0 million
Direct cost ratio
0.231%
0.168%
0.145%
Summary of look-through costs
2016-17
2017-18
2018-19
Look-through costs
0.56%
0.61%
0.46%
Cost disclosures under section 81 of the Future Fund Act 2006
Under its statutory arrangements the Board also reports costs in accordance with section 81 
of the Future Fund Act 2006.
Amount debited  Amount debited  Amount debited 
Purpose
2016-17
2017-18
2018-19
Contracts with investment managers
$7,532,456
$9,390,187
$9,805,622
Board remuneration and allowances
-
-
-
Agency remuneration and allowances
-
-
-
Consultants and advisers to the Board and Agency
-
-
-
Agency operations
$2,017,154
$2,271,251
$3,685,575
Note:
All costs reported under section 81 of the Future Fund Act 2006 are reported on a cash basis, whereas the direct costs in the above table include accruals.

---

61
Aboriginal and Torres Strait 
Islander Land and Sea Future Fund
Mandate: Consumer Price Index plus 2.0% to 3.0% per annum over the long term with an 
03
pe In
acceptable but not excessive level of risk. 
r v
f e
orm stmaencn
Return 
t
e  
0.9%
2018-2019
Cash flow 
history
Contributions
Earnings
Withdrawals
Balance
Is A
$ 2.0    + $ 0.0  – $ 0.0  = $2.0
l b
a o
n r
at 30 June 2019
d ig
e
billion
billion
billion
billion
i
r L na
a l a
nd a nd Tnd orSrees Sa Fturtauit re Fund
Interpreting the Investment 
Investment review and risk 
Mandate
positioning
The Aboriginal and Torres Strait Islander Land and Sea 
While the Board develops a long-term investment 
f I
Future Fund (ATSILS Fund) was established in February 
strategy for the ATSILS Fund, it remains invested in a 
u n
t v
u e
2019 to enhance the Commonwealth’s ability to make 
combination of cash and short-term deposit instruments.
r s
e g ti
payments to the Indigenous Land and Sea Corporation.
n
e g f
During the initial transition period, as the Board of 
ne o
The ATSILS Fund was established with a capital 
Guardians develops a long-term strategic asset 
r r t
at
contribution of $2 billion transferred from the Aboriginal 
allocation, the Australian Government anticipates a 
i h
o e b
ns o
and Torres Strait Islander Land Account.
return lower than the benchmark return. 
en
f A efi
The Fund’s Investment Mandate requires the Board to 
u t o
s
Performance
target an average return, net of costs, of at least the 
t f 
ra  
l
Consumer Price Index + 2.0% to 3.0% pa over the long term 
The ATSILS Fund commenced on 1 February 2019.
ian
while taking an acceptable but not excessive level of risk.
s
At 30 June 2019 the Fund had generated a return of 0.9% 
The Board of Guardians is in the process of developing a 
since inception and was valued at $2.0 billion.
long-term investment strategy for the ATSILS Fund. 
2 A
0 n
1 n
8 u
-2 a
0 l R
19 eport  

---

62
Costs
Direct costs
Direct costs, previously reported as management costs 
Cost management
and transaction and operational costs, reflect all directly 
We closely monitor costs in the asset classes in which 
incurred costs associated with the management of the 
we invest, and review the expected returns and costs 
ATSILS Fund.
of implementing the investment strategy on an ongoing 
The ATSILS Fund’s direct costs for 2018-19 are shown 
basis. In negotiating fee arrangements, we focus on 
below. This includes the direct cost ratio (direct costs 
securing arrangements that offer value for money for skill 
divided by the average net assets for the financial year).
and resources applied, that are competitive relative to 
other managers in the sector and that provide for strong 
alignment between managers and our organisation.
All returns reported are net of costs.
Summary of direct costs and direct cost ratio
2018-19 
(1 February 2019 to 30 June 2019)
Direct costs
$0.3 million
Direct cost ratio
0.037%
Cost disclosures under section 81 of the Future Fund Act 2006
Under its statutory arrangements the Board also reports costs in accordance with section 81 
of the Future Fund Act 2006.
Amount debited 2018-19 
Purpose
(1 February 2019 to 30 June 2019)
Contracts with investment managers
$77,496
Board remuneration and allowances
-
Agency remuneration and allowances
-
Consultants and advisers to the Board and Agency
-
Agency operations
$64,383
Note:
All costs reported under section 81 of the Future Fund Act 2006 are reported on a cash basis, whereas the direct costs in the above table include accruals.

---

63
DisabilityCare Australia Fund
Mandate: Australian bank bill swap rate plus 0.3% per annum calculated on a rol ing 12-month 
basis while minimising the probability of capital loss.
03
pe In
r v
f e
Earnings for 
Return 
orm stm
$ 0.3 billion
2.2%
2018-2019
2018-2019
a e
nc nt
e  
Earnings since 
Return since 
$ 0.8  billion
2.4% pa
inception
inception
Au Dis
s a
tr
Cash flow 
b
Contributions
Earnings
Withdrawals
Balance
a ili
li
history
a ty
 F C
$ 18.6  + $ 0.8  – $ 3.1  = $ 16.4 
u a
at 30 June 2019
n r
d e
billion
billion
billion
billion
 
f I
u n
t v
u e
r s
e g tin
e g f
ne o
r r t
ati h
o e b
n
 
\
requires us to act in a way that:
s o e
Interpreting the Investment 
n
f A e
 
ĭ
is consistent with international best practice for 
fi
Mandate
u t o
institutional investment
st f 
r
The DisabilityCare Australia Fund’s Investment 
a  
li
 
ĭ
minimises the impact on the Australian financial 
a
Mandate was issued to the Board by the responsible 
ns
Ministers in July 2014 and is available at Appendix B 
markets
and on our website.
 
ĭ
is unlikely to cause a diminution of the Australian 
In summary, the Mandate:
Government’s reputation in financial markets
 
\
allows for a review of the Mandate, including the 
 
\
benchmarks returns against the Australian three- 
2 A
0 n
benchmark return, by the responsible Ministers in 
1 n
month bank bill swap rate +0.3% per annum calculated 
8 u
consultation with the Board of Guardians.
-2 a
on a rolling 12-month net-of-fee basis
0 l R
19 ep
 
\
requires us to invest in such a way as to minimise the 
ort 
probability of capital losses over a 12-month horizon
 

---

64
Risk positioning
Report
We are required to invest the assets of the Fund in such a 
Early in the life of the Fund, before withdrawals were 
way as to pursue the benchmark return while minimising 
expected, we positioned the portfolio into somewhat 
the probability of capital losses over a 12-month horizon.
longer-maturity high quality credit instruments. As the 
expected duration of capital has fallen, we have taken 
The Government has indicated that it expects to make 
steps to increase available liquidity and reduce risk. This 
additional capital contributions to the Fund as well as 
has included broadening the active management strategy 
withdrawals to reimburse States, Territories and the 
beyond a credit spread emphasis and lowering the level 
Commonwealth for expenditure incurred in relation to 
of credit spread duration risk. 
the National Disability Insurance Scheme. We continue 
to focus on maintaining additional liquidity to help 
manage transaction costs and the timing of cash flows 
Sector exposure at 30 June 2019
as they are confirmed.
Investment review
Investment grade corporate   8%
Mortgage backed securities  7%
Strategy
Other securitised 
2%
The DisabilityCare Australia Fund is designed to fund 
Cash and other 
83%
cash flows related to National Disability Insurance 
Scheme spending. Accordingly, we invest the Fund 
to provide an ample liquidity buffer to support these 
outflows.
Our core strategy is to invest in a combination of short-
Region exposure at 30 June 2019
and medium-term domestic and global debt instruments, 
providing some yield above base cash rates while 
Australia 78%
maintaining a high quality, liquid and defensive profile.
United States of America 
 8%
Europe (ex UK)  
 4%
United Kingdom 
4%
Japan 4%
Developed (other) 
3%
Emerging 0%

---

65
Performance
relative to other managers in the sector and that 
provide for strong alignment between managers and our 
In 2018-19 the DisabilityCare Australia Fund 
organisation.
03
pe I
generated an investment return of 2.2%, marginally 
n
All returns reported are net of costs.
r v
below its benchmark of 2.3%.
f e
orm stm
The Fund received capital contributions of $4.3 billion 
Direct costs
a e
nc nt
from the Australian Government in 2018-19. The value of 
Direct costs, previously reported as management costs 
e  
the Fund was $16.4 billion at 30 June 2019.
and transaction and operational costs, reflect all directly 
Costs
incurred costs associated with the management of the 
DisabilityCare Australia Fund.
Au Di
The Fund’s direct costs over the last three years are 
s
Cost management
s a
tr b
shown below. This includes the direct cost ratio (direct 
a ili
l
We continue to closely monitor costs in the asset classes 
ia t
costs divided by the average net assets for the financial 
y
 F C
in which we invest, reviewing the expected returns and 
u a
year).
n r
costs of implementing the investment strategy on an 
d e 
ongoing basis. In negotiating fee arrangements, we focus 
Changes in costs over the years reflect changes in the 
on securing arrangements that offer value for money 
size of the Fund and the investment activity undertaken 
for skill and resources applied, that are competitive 
during the year.
f I
u n
t v
u e
r s
e g tin
e g f
n
Summary of direct costs and direct cost ratio
e o
r r t
ati h
2016-17
2017-18
2018-19
o e b
ns o e
Direct costs
$4.7 million
$7.0 million
$10.8 million
n
f A efi
Direct cost ratio
0.072%
0.065%
0.073%
u t o
st f 
ra  
lians
Cost disclosures under section 81 of the Future Fund Act 2006
Under its statutory arrangements the Board also reports costs in accordance with section 81 
of the Future Fund Act 2006.
Amount debited  Amount debited  Amount debited 
2 A
Purpose
0 n
2016-17
2017-18
2018-19
1 n
8 u
-2 a
Contracts with investment managers
$4,664,201
$5,836,281
$7,568,294
0 l R
19 ep
Board remuneration and allowances
-
-
-
ort 
Agency remuneration and allowances
-
-
-
 
Consultants and advisers to the Board and Agency
-
-
-
Agency operations
$868,195
$748,573
$1,065,443
Note:
All costs reported under section 81 of the Future Fund Act 2006 are reported on a cash basis, whereas the direct costs in the above table include accruals.

---

66
Nation-building Funds
Mandate: 
Australian bank bill swap rate plus 0.3% per annum over rol ing 12-month periods while 
minimising the probability of capital loss.
Building Australia Fund
Earnings for 
Return 
$ 0.1 billion
2.3%
2018-2019
2018-2019
Earnings since 
Return since 
$2.3 billion
3.5% pa
inception
inception
Cash flow 
history
Contributions
Earnings
Withdrawals
Balance
$ 10.9  + $ 2.3  – $9.2  = $ 4.0 
at 30 June 2019
billion
billion
billion
billion
Education Investment Fund
Earnings for 
Return 
$ 0.1 billion
2.3%
2018-2019
2018-2019
Earnings since 
Return since 
$1.7 billion
3.5% pa
inception
inception
Cash flow 
history
Contributions
Earnings
Withdrawals
Balance
$ 6.5    + $ 1.7  – $4.2  = $4.0 
at 30 June 2019
billion
billion
billion
billion

---

67
Interpreting the Investment 
Risk profile
Mandate
We are required to invest the assets of the Funds in such 
03
pe I
a way as to pursue the benchmark return while minimising 
n
The Investment Mandates for the Building Australia 
r v
the probability of capital losses over a 12-month horizon. 
f e
orm s
Fund and the Education Investment Fund, known 
tm
collectively as the Nation-building Funds, were issued 
In July 2019 the Parliament passed the Future Drought 
a e
nc n
to the Board by the responsible Ministers in July 2009 
t
Fund Act 2019. The assets of the Building Australia Fund 
e  
and are available at Appendix B and on our website.
were transferred to the Future Drought Fund on 
In summary, each Mandate:
1 September 2019 with the Future Fund Board of 
Guardians responsible for investing the fund. The Building 
 
\
benchmarks returns against the Australian three-
Australia Fund was closed.
F N
u a
month bank bill swap rate +0.3% per annum on a 
n ti
d
The Government has also indicated that it intends 
o
s
rolling 12-month net-of-fee basis. 
n-
to abolish the Education Investment Fund, with the 
bu
 
\
requires the Board to invest in such a way as to 
il
uncommitted balances transferred to a proposed 
din
minimise the probability of capital losses over a 
Emergency Response Fund. The timing of this process is 
g 
12-month horizon
uncertain. Accordingly, we continue to maintain additional 
liquidity in the Education Investment Fund portfolio.
 
\
requires the Board to act in a way that:
 
ĭ
is consistent with international best practice for 
Investment Review
f I
u n
institutional investment
t v
u e
r s
e g
Strategy
ti
 
ĭ
minimises the impact on the Australian financial 
n
e g f
n
markets
Our core strategy is to invest in a combination of short-
e o
r r t
a
and medium-term domestic and global debt instruments, 
t
 
ĭ
is unlikely to cause a diminution of the Australian 
i h
o e b
providing some yield above the base cash rates while 
n
Government’s reputation in financial markets
s o e
maintaining a high quality and defensive profile. The 
n
f A efi
 
\
allows for a review of the Mandate, including the 
portfolios continue to be positioned in a highly liquid 
u t o
s
benchmark return, by the responsible Ministers in 
manner.
t f 
ra  
l
consultation with the Board of Guardians.
ian
Report
s
During 2018-19 we continued to manage the Nation-
building Funds in accordance with their Mandates, with 
little activity during the period. Performance in 2018-19 
was in line with the benchmark for each Fund. 
2 A
0 n
1 n
8 u
-2 a
0 l R
19 eport  

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68
Building Australia Fund
Education Investment Fund
Strategy exposure at 30 June 2019
Strategy exposure at 30 June 2019
Investment grade corporate  16%
Investment grade corporate  22%
Mortgage backed securities  7%
Mortgage backed securities  6%
Other securitised 
2%
Other securitised 
3%
Cash and other 
74%
Cash and other 
69%
Region exposure at 30 June 2019
Region exposure at 30 June 2019
Australia 70%
Australia 58%
United States of America 
 9%
United States of America   14%
Europe (ex UK)  
 7%
Europe (ex UK)  
 8%
United Kingdom 
5%
United Kingdom 
6%
Japan 4%
Japan 7%
Developed (other) 
5%
Developed (other) 
6%
Performance
relative to other managers in the sector and that 
provide for strong alignment between managers and our 
The benchmark return for each of the Nation-building 
organisation.
Funds in 2018-19 was 2.3%. Both Funds met this 
All returns reported are net of costs.
benchmark, each achieving a return of 2.3%.
The value of the Building Australia Fund was $4.0 billion 
Direct costs
at 30 June 2019. The value of the Education Investment 
Direct costs, previously reported as management costs 
Fund was also $4.0 billion at 30 June 2019.
and transaction and operational costs, reflect all directly 
Costs
incurred costs associated with the management of the 
Nation-building Funds.
Cost management
The Nation-building Funds’ direct costs over the last 
three years are shown below. This includes the direct 
We continue to closely monitor costs in the asset classes 
cost ratio (direct costs divided by the average net assets 
in which we invest, reviewing the expected returns and 
for the financial year).
costs of implementing the investment strategy on an 
ongoing basis. In negotiating fee arrangements, we focus 
Changes in costs over the years reflect changes in the 
on securing arrangements that offer value for money 
size of the Nation-building Funds and the investment 
for skill and resources applied, that are competitive 
activity undertaken during the year.

---

69
Summary of direct costs and direct cost ratio
03
Building Australia Fund
pe In
2016-17
2017-18
2018-19
r v
f e
orm stm
Direct costs
$3.6 million
$3.8 million
$3.7 million
a e
nc n
Direct cost ratio
0.097%
0.098%
0.095%
t
e  
Education Investment Fund
2016-17
2017-18
2018-19
F N
u a
n ti
Direct costs
$3.8 million
$4.1 million
$4.2 million
d o
s n-
Direct cost ratio
0.102%
0.107%
0.108%
building 
Cost disclosures under section 81 of the Future Fund Act 2006
Under its statutory arrangements the Board also reports costs in accordance with section 81 of 
f I
the Future Fund Act 2006.
u n
t v
u e
r s
e g tin
e g f
Building Australia Fund
ne o
r r t
a
Amount debited  Amount debited  Amount debited 
ti h
Purpose
o e b
n
2016-17
2017-18
2018-19
s o en
f A
Contracts with investment managers
$3,486,610
$3,676,473
$3,180,068
efi
u t o
s
Board remuneration and allowances
-
-
-
t f 
ra  
l
Agency remuneration and allowances
-
-
-
ians
Consultants and advisers to the Board and Agency
-
-
-
Agency operations
$358,894
$294,829
$312,791
Education Investment Fund
2 A
0 n
1 n
8
Amount debited  Amount debited  Amount debited 
u
-
Purpose
2 a
0 l R
2016-17
2017-18
2018-19
19 ep
Contracts with investment managers
$3,693,845
$3,993,854
$3,795,379
ort  
Board remuneration and allowances
-
-
-
Agency remuneration and allowances
-
-
-
Consultants and advisers to the Board and Agency
-
-
-
Agency operations
$361,726
$295,548
$307,433
Note:
All costs reported under section 81 of the Future Fund Act 2006 are reported on a cash basis, whereas the direct costs in the above table include accruals.

---

70
04
Governance and 
accountability
The statutory governance arrangements for the 
funds we manage are set out primarily in the 
Future Fund Act 2006, the Medical Research 
Future Fund Act 2015, the Aboriginal and Torres 
Strait Islander Land and Sea Future Fund Act 
2018, the DisabilityCare Australia Fund Act 2013 
and the Nation-building Funds Act 2008.
This core legislation sets out the roles and responsibilities of the Australian 
Government and of the Board and the Agency. In addition, the Public Governance, 
Performance and Accountability Act 2013 applies to the Agency and (to a limited 
extent) the Board and, together with Commonwealth regulations, guidelines, 
procedures and orders, establishes arrangements for delegations and authorities, 
spending and the accounting treatment of costs, liabilities, income and expenses. 

---

71
The core legislation provides the Australian Government, 
More broadly, we are a founding member of the 
through the responsible Ministers, with oversight of 
International Forum of Sovereign Wealth Funds 
the funds subject to the arrangements that establish 
(IFSWF) and fully implement the Santiago Principles. 
04
the independence of the Board. The government’s role 
The Santiago Principles promote transparency, good 
a G
c o
c v
includes the appointment of Board members and the 
governance, accountability and prudent investment 
o e
u r
establishment of investment mandates for each of the 
practices whilst encouraging a more open dialogue 
n n
t a
a nc
funds. The legal framework retains beneficial ownership 
and deeper understanding of sovereign wealth fund 
bil ei
of the assets of each fund in the Commonwealth. It also 
activities.
t  a
y n
clearly states the purpose of each fund and sets out the 
d 
arrangements for contributions to and withdrawals from 
Accountability
the various funds. 
The legislation provides accountability arrangements 
f I
u n
The Board is responsible for investing the assets of the 
t v
for the organisation, including the tabling in Parliament 
u e
r s
e g
funds in accordance with the legislation. To assist it 
t
of an annual report and audited financial statements. 
in
e g f
in this role, the Board receives recommendations and 
We also publish quarterly portfolio updates to provide 
ne o
advice from the Agency which is also responsible for 
r
details of the investment activity and performance of 
r t
ati h
implementing the Board’s investment decisions.
our funds. Other public updates are provided in the form 
o e b
ns o
of published speeches and comments to the media. We 
e
The Board operates independently from the government. 
n
f A e
are required to keep the responsible Ministers informed 
fi
This independence is emphasised in a number of ways, 
u t o
of the operations of the organisation and provide data to 
s
including:
t f 
ra  
the Department of Finance for the purpose of producing 
li
 
\
The expenses of the funds are met from the assets 
a
its financial statements and other reports.
ns
of the funds themselves rather than from annual 
appropriations through Parliament. 
The nominated Minister may also, by written notice, 
require us to prepare reports or provide information on 
 
\
The Board must be consulted on draft Investment 
specified matters relating to the performance of our 
Mandate Directions which must be consistent with the 
functions and have these published.
2 A
requirements of the legislation, and any submissions 
0 n
1 n
the Board makes on a draft Investment Mandate must 
Statements of Expectations and Statements of Intent 
8 u
-2 a
be tabled in Parliament. The investment mandates 
have also been exchanged between the then Minister 
0 l R
19 e
for each of the funds define the risk and return 
for Finance and Deregulation and our organisation. 
po
These documents further delineate the responsibilities 
r
requirements and timeframe for investment activity 
t  
while the legislation imposes very few limitations on 
and communication arrangements between the parties 
asset allocation, selection of markets and portfolio 
and are available on our website.
design on the Board.
We routinely appear before public Estimates Hearings 
 
\
Board members must be drawn from outside 
of the Senate Committee on Finance and Public 
government and must meet the requirements of 
Administration to provide the Committee with updates 
having substantial expertise and professional 
on our operations and the performance of the funds. 
credibility in investing or managing financial assets, 
In 2018-19 we appeared at hearings in October 2018, 
or in corporate governance. 
February 2019 and April 2019. These public hearings are 
based upon the Outcome and Output structure detailed 
The Board is not involved in advising on macroeconomic 
in the Portfolio Budget Statements.
management or policy formation and implementation 
and is focused solely on the pursuit of its investment 
objectives in a commercial manner. 

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72
Board of Guardians
As at 30 June 2019 the Board consisted of a Chair and six other members. 
Members are appointed by the Treasurer and the Minister for Finance and selected 
for their expertise in investing in financial assets, managing investments or 
corporate governance.
Board members are appointed on a part-time basis for a term of up to five years and 
are eligible to be reappointed.
Hon Peter Costel o AC
Chairman
Mr Costello was first appointed to the Board with effect from 18 December 2009. 
Mr Costello was appointed acting Chairman on 11 January 2014 and Chairman 
with effect from 4 February 2014 for a five-year term. He was reappointed as 
Chairman for another five-year term with effect from 4 February 2019.
Mr Costello served as a member of the House of Representatives from 1990 to 
2009 and was Treasurer of the Commonwealth of Australia from March 1996 
to December 2007. He has been Chair of the G20 Central Bank Governors and 
Finance Ministers, the OECD Ministerial Council, the APEC Finance Ministers, and 
a Governor of the IMF, World Bank and Asian Development Bank.
He has served as Chairman of the Independent Advisory Board to the World Bank.
Mr Costello is the Chairman of Nine Entertainment Co. Mr Costello was appointed a 
Companion of the Order of Australia in 2011 for eminent service to the Parliament 
of Australia through the development of landmark economic policy reforms.

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73
Ms Erin Flaherty
Ms Flaherty was appointed with effect from 3 April 2016 for a five-year term.
04
a G
c o
Ms Flaherty has extensive experience in corporate governance, finance, 
c v
o e
infrastructure and law, including most recently as an Executive Director at 
u r
n n
t a
Infrastructure NSW and Deputy Chief Executive Officer at Reliance Rail.  
a nc
bi
Ms Flaherty was also an inaugural member of the Sydney Metro Authority, the 
l e
it  a
y n
independent body established to oversee the Sydney Metro rail project.
d 
Her current appointments include Non-Executive Director of Moorebank 
Intermodal Company and PCYC NSW and National Chair, Professional Scholarship 
f I
Selection Committee of the Australian-American Fulbright Commission.
u n
t v
u e
r s
e g tin
e g f
ne o
r r t
Mr John Fraser
ati h
o e b
n
Mr Fraser was appointed with effect from 12 November 2018 for a five-year term. 
s o en
f A efi
Mr Fraser has more than 40 years’ experience in leadership roles in economics, 
u t o
s
public policy, capital markets and asset management in Australia and overseas. 
t f 
ra  
Mr Fraser is a Non-Executive Director of AMP Limited and Judo Bank. He was 
lian
Secretary to the Australian Treasury from 2015 to July 2018 serving as a member 
s
of the Board of the Reserve Bank of Australia, a member of the Australian 
Council of Financial Regulators and Chair of the G20 Global Infrastructure Hub. 
Prior to this, Mr Fraser was Chairman and CEO of UBS Global Asset Management 
based in London, a member of the UBS Group Executive Board and Chairman 
2 A
0 n
1
of UBS Saudi Arabia. He also served as an Australian Stock Exchange Board 
n
8 u
-
Director and as Chairman of Victorian Funds Management Corporation. Prior 
2 a
0 l R
1
to 1993, Mr Fraser held a number of senior positions with the Treasury over 20 
9 epo
years, including postings at the International Monetary Fund and the Australian 
rt  
Embassy in the United States. 
In 2001 he received a Centenary medal for service to Australian society through 
business and economics.
Ms Carolyn Kay
Ms Kay was appointed with effect from 14 April 2015 for a five-year term. 
Ms Kay has more than 30 years’ experience in the finance sector both in 
executive and non-executive roles. As an executive Ms Kay worked as a banker 
and as a lawyer at Morgan Stanley, JP Morgan and Linklaters & Paines in 
London, New York and Australia. She has served as a non-executive director of 
enterprises across a broad range of industries.
Ms Kay is currently a Director of Scentre Group, Myer Family Investments, the 
Australia-China Council and in the not-for-profit sector, the General Sir John 
Monash Scholarship Foundation. She was awarded a Centenary Medal for 
services to business.

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74
Mr John Poynton AO
Mr Poynton was first appointed with effect from 4 February 2014 for a five-year 
term. He was reappointed for another five-year term with effect from  
4 February 2019.
Mr Poynton is Chairman of Jindalee Partners, Strike Energy Limited and Sapien 
Cyber Ltd and a Non-Executive Director of Crown Resorts Limited. He has 
previously served as the Chairman, Deputy Chairman or Non-Executive Director 
of a number of ASX listed companies, Federal Government boards, education 
institutions and not-for-profit enterprises.
Mr Poynton is an Officer in the General Division of the Order of Australia and is a 
past recipient of a WA Citizen of the Year award in the industry and commerce 
category. He holds a Bachelor of Commerce and an honorary Doctor of Commerce 
from the University of Western Australia.
Mr Michael Wachtel
Mr Wachtel was appointed with effect from 3 April 2016 for a five-year term.
Mr Wachtel’s primary business experience is global in nature and predominantly in 
the area of large complex international business. Through various leadership roles 
in the professional services industry he has extensive experience in organisational 
leadership, finance, risk management and governance, including as a former Chair 
(Asia Pacific & Oceania) of Ernst & Young (EY) and a member of the EY Global 
Governance Council & Global Risk Executive Committee.
He is a Non-Executive Director of SEEK and the St Vincent’s Medical Research 
Institute and a past President of the International Fiscal Association (IFA 
Australia). He holds Bachelors of Commerce and Law from the University of Cape 
Town and a Masters of Law from The London School of Economics.
Dr Jane Wilson
Dr Wilson was appointed with effect from 14 April 2015 for a five-year term.
Dr Wilson has had a distinguished career as an independent Director with a 
background in finance, banking and medicine. Dr Wilson is a Non-Executive 
Director of Transurban, Costa Group Holdings and an independent Director of 
Sonic Healthcare Ltd and the General Sir John Monash Foundation. She is also 
Co-Chair of the Australian Government Advisory Board on Technology and 
Healthcare Competitiveness. Dr Wilson was Deputy Chancellor of the University 
of Queensland and has previously served on boards of ASX-listed companies, 
Government-owned Corporations and not-for-profit companies. 
Dr Wilson was awarded the 2016 Australian Institute of Company Directors 
Queensland Gold Medal Award for contribution to business and the wider 
community. She holds a Bachelor of Medicine and an Honorary Doctor of Business 
from the University of Queensland and an MBA from the Harvard Business School.

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75
Board and Board Committee membership 2018-19
Board/Committee
Members
04
a G
c
Future Fund Board of Guardians
Hon Peter Costello AC (Chair)
o
c v
o e
Responsible for the investment of the public asset funds in 
Ms Erin Flaherty 
u r
n n
t a
accordance with the relevant legislation and Directions.
Mr John Fraser1
a nc
b
Ms Carolyn Kay
il e
it  a
y
Mr John Poynton AO
nd 
Mr Michael Wachtel
Dr Jane Wilson
Audit & Risk Committee2
Mr Michael Wachtel (Chair)
f I
u n
t v
Focuses on the control framework, external accountability, 
Ms Erin Flaherty
u e
r s
e g t
legislative compliance, internal and external audit and the 
Mr John Fraser3
in
e g f
appropriate identification and management of risks.
Ms Carolyn Kay
ne o
r
Mr John Poynton AO
r t
ati h
Dr Jane Wilson
o e b
ns o e
Remuneration & Nominations Committee
Hon Peter Costello AC (Chair)
n
f A efi
Focuses on remuneration and appointment matters for staff and 
Mr John Fraser3
u t o
s
appointments to boards of investment companies.
Ms Carolyn Kay
t f 
ra  
Mr Michael Wachtel
lians
Conflicts Committee
Mr John Poynton AO (Chair)
Provides oversight of and advises the Board in relation to any 
Ms Erin Flaherty
questions of possible conflict of interest arising for Board and 
Dr Jane Wilson
Board Committee members.
Transaction Committee
Hon Peter Costello AC (Chair) 
2 A
0 n
1 n
Provides support and assistance to the Board in respect of any 
Mr John Fraser3
8 u
-2 a
transaction, matter or issue as referred to the Committee by the 
Ms Carolyn Kay
0 l R
1
Board from time to time.
9 eport 
Notes:
 
1.  Appointed to the Board with effect from 12 November 2018. 
2.  Hon Peter Costello AC attends meetings as an observer.
3.  Appointed to Committee with effect from 4 December 2018. 

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76
Board and Board Committee attendance 2018-19 
Future Fund Board 
Remuneration 
Member
Audit & Risk Committee
of Guardians
& Nominations Committee
Meetings held and 
Meetings held and 
Meetings held and 
eligible to attend 
eligible to attend 
eligible to attend 
as a member
Attended
as a member
Attended
as a member
Attended
Hon Peter 
9
9
0
5
5
5
Costello AC 
Ms Erin 
9
8
5
5
0
0
Flaherty
Mr John 
5
5
1
2
3
3
Fraser1
Ms Carolyn 
9
9
5
5
5
5
Kay 
Mr John 
9
9
5
5
0
3
Poynton AO 
Mr Michael 
9
9
5
5
5
5
Wachtel
Dr Jane 
9
9
5
5
0
1
Wilson 
Notes:
The Conflicts Committee and the Transaction Committee are ad-hoc Committees. The Committees meet on an as needs basis and did not formally 
convene during the year.
Board Members are able to attend meetings of Committees of which they are not a member.
1.  Board term commenced on 12 November 2018 and Remuneration & Nominations, Audit & Risk and Transaction Committees membership 
commenced with effect from 4 December 2018. 

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77
Future Fund Management Agency
The Board is supported by the Future Fund Management Agency. Employed under 
04
a G
the Public Service Act 1999, the Agency comprises professionals from a range 
c o
c v
of sectors including finance, investment, legal and corporate services, who are 
o e
u r
responsible for making recommendations to the Board on the most appropriate 
n n
t a
a nc
investment strategy for each fund, and for the implementation of these strategies.
bil eit ay
The Chair of the Board is the Accountable Authority for the Agency, although 
nd 
operational management has been delegated to the Chief Executive Officer. In 
2018-19 the Chair of the Board and the Accountable Authority for the Agency was 
Hon Peter Costello AC.
f I
u n
t v
u e
The Agency’s Management Committee, led by the Chief Executive Officer, is 
r s
e g tin
accountable for the operations of the Agency. At 30 June 2019 the Management 
e g f
n
Committee comprised the Chief Executive Officer, General Counsel and Chief Risk 
e o
r r t
a
Officer, Chief Culture Officer, Chief Operating Officer, Chief Financial Officer, Chief 
ti h
o e b
Investment Officer, and Chief Technology Officer. 
ns o enf Aefiut os
Mr David Neal
t f 
ra  
li
Chief Executive Officer
ans
Mr Neal joined the Future Fund in 2007 as the organisation’s first Chief 
Investment Officer where he established the Fund’s investment team and built 
and designed the Fund’s investment model, including its distinctive ‘one team’ 
investment approach.
2 A
0 n
1
Mr Neal was appointed as Chief Executive Officer of the Future Fund 
n
8 u
-
Management Agency in 2014 and is responsible for the leadership and strategic 
2 a
0 l R
1
direction of the Agency and supporting the Future Fund Board of Guardians.
9 epor
Prior to joining the Future Fund, Mr Neal spent 15 years with Willis Towers 
t  
Watson where he started his career in the United Kingdom. He went on to 
establish and lead the firm’s investment consulting business in Australia, 
building it into one of the leading investment consulting businesses in the 
country. As Head of Investment Consulting at Willis Towers Watson Australia  
Mr Neal led the team providing advisory services to the Future Fund when it was 
first established in 2006.
Mr Neal is a Director of Perth Airport, a member of the MSCI Advisory Council, and 
a member of the ASIC External Advisory Committee. He holds a Master of Arts 
(Hons) in Electronic and Structural Materials Engineering from St Edmund Hall, 
Oxford University.

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78
Dr Raphael Arndt
Chief Investment Officer
Dr Arndt has held the role of Chief Investment Officer since 1 September 2014. In 
March 2018 Dr Arndt took on a number of responsibilities previously held by the 
Chief Investment Strategist. Prior to his appointment as Chief Investment Officer, 
Dr Arndt had been Head of Infrastructure and Timberland since 2008.
Dr Arndt is Chair of the Investment Committee and a Board Member of the 
Melbourne Lord Mayor’s Charitable Foundation. He has previously been an 
Investment Director with Hastings Funds Management and has also held 
infrastructure policy positions with both the private sector and the Victorian 
Department of Treasury and Finance. Dr Arndt started his career as an engineer 
working with Ove Arup & Partners.
Mr Richard Large
Chief Technology Officer
Mr Large joined the Future Fund in 2019. He was formerly Global Head of 
Business Systems at Aberdeen Asset Management for 15 years and has over 
25 years of experience in the Investment Management industry. Mr Large has 
implemented investment capabilities to support portfolio management for a 
wide range of asset types including Equities, Fixed Income, Multi-Asset, Quants, 
Private Equity, Fund of Funds and Property. He previously held senior technology 
and operations roles at Prudential Portfolio Managers and M&G Investments.
Mr Paul Mann
Chief Financial Officer
Mr Mann commenced his role as Chief Financial Officer in 2007. He served as 
acting Managing Director between 1 March and 4 August 2014. He is a CFA 
Charterholder and a Chartered Accountant with an extensive audit background in 
financial services gained at PricewaterhouseCoopers in Australia and the United 
Kingdom. He also has five years’ experience in the provision of fund accounting 
and tax reporting services to investment clients gained at National Custodian 
Services in Melbourne.

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79
Mr Gordon McKellar
Chief Operating Officer
04
a G
c
Mr McKellar joined the Future Fund in 2007. He has over 30 years’ of operational 
o
c v
o e
experience in funds management and asset servicing. He was previously Head of 
u r
n n
Operations at BNP Paribas Securities Services and prior to this held a number of 
t a
a nc
b
operational and client management roles with Deutsche Bank and Bankers Trust 
il e
it  a
y
in Edinburgh, New York and Sydney.
nd 
f I
u n
t v
u e
r s
e g t
Ms Elizabeth McPherson
in
e g f
n
Chief Culture Officer
e o
r r t
ati h
o e b
Ms McPherson joined the Future Fund in 2010 and has held the position of 
ns o e
Chief Culture Officer since 2014. In 2016 Ms McPherson’s responsibilities of 
n
f A e
people, culture and communication were expanded to include strategic project 
fi
u t o
s
management and in March 2018 change management and planning was added to 
t f 
ra  
create a business unit focused on organisational development.
lians
Ms McPherson has a Masters in Leadership, Postgraduate qualifications in 
Change Management and in Employee Relations as well as undergraduate 
qualifications in HR and Business. Ms McPherson was part of the Promina 
Insurance leadership team when it merged with Suncorp in 2007 and remained 
with Suncorp until 2010, leading organisational design and change management 
2 A
0 n
initiatives. Previously she worked with CSL and Wesfarmers, Mandarin Oriental 
1 n
8 u
Hotel Group Hong Kong and with the South African Government.
-2 a
0 l R
19 eport  
Mr Cameron Price
General Counsel and Chief Risk Officer
Mr Price joined the Future Fund in March 2014 as General Counsel. He took up 
the additional position of Chief Risk Officer in March 2018. Previously he was 
a Partner and Board member at law firm Allens Linklaters, where he had 25 
years of experience in corporate law, with particular expertise in mergers and 
acquisitions, private equity, equity capital markets and corporate governance.

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80
Risk management
Monitoring and managing risk
We believe that effective governance of our own 
We consider risk in three broad categories: investment 
operations is essential to the successful pursuit of our 
risk, operational risk and external risk:
objectives. In particular, we are focused on the prudent 
1.  Investment risk – risks for which we expect to 
management of risk.
be compensated. These risks often cannot be 
The organisation, along with many financial institutions, 
eliminated, particularly if they are of a strategic 
has adopted the ‘Three Lines of Defence’ model for risk 
nature, nor are they inherently undesirable if they are 
governance. This model is built around three elements 
compensated by expected returns. We therefore seek 
which we have adapted to suit our organisation:
to optimise rather than minimise investment risks.
1.  First line of defence is the business. The business 
2.  Operational risks – risks for which we do not expect 
‘owns’ each risk and must ensure that there are 
to be compensated. While some level of operational 
controls in place to appropriately manage the risk 
risk is unavoidable in practice, normally we are not 
within the Board’s risk appetite. The business is 
compensated for it (ie higher operational risk is 
responsible for identifying, analysing, managing, 
not usually expected to produce higher expected 
monitoring and reporting risks.
returns). This makes operational risk inherently 
undesirable and hence we seek to take all 
2.  Second line of defence is the independent Risk Team, 
reasonable measures to minimise it without imposing 
led by the Chief Risk Officer. This team develops 
excessive costs or constraints on our strategy, 
the organisation’s risk management framework to 
decision making or operations.
promote effective and consistent risk management 
across the organisation, assists and supports the 
3.  External risks – risks that arise from external events 
business in developing its risk management policies, 
which are outside the organisation’s control. These 
systems and controls, and provides independent 
external events usually have a very low probability 
review and challenge of the first line. The Risk Team 
of occurrence (or at least their form and timing are 
reports periodically to the Board, Board Committees 
not predictable) or they are difficult to envisage. 
and Agency Committees. The Risk Team considers 
They may include natural disasters or terrorism 
organisational risk management from a strategic 
with immediate and major impact, or geopolitical or 
perspective as well as at the individual key risk level.
regulatory change with long-term material impact. 
These are also likely to be inherently undesirable, 
3.  Third line of defence is an independent internal audit 
but since they are outside our control they cannot 
function which is outsourced. The function provides 
be minimised or optimised. We therefore seek to 
independent assurance that the risk management 
prepare for such events and manage their impact 
framework is appropriate and is operating effectively 
should they occur.
(including through independent control testing).
The Board has overall responsibility for risk management 
for the organisation. This includes setting the risk 
appetite and acceptance of the residual risk rating for 
each key risk identified in the organisation’s Risk Register. 
The Board sets the investment risk appetite (via control 
ranges, limits ad other directions) within which the 
Agency’s relevant investment team should operate.

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81
The Board’s Audit & Risk Committee has been 
External audit 
established to provide assurance to the Board that the 
risks as detailed in the organisation’s Risk Register 
The Australian National Audit Office undertakes the 
04
are appropriately identified and managed and to 
a G
external audit of the organisation, engaging a professional 
c o
c v
provide assurance and assistance to the Board on the 
accounting firm to assist in this process.
o e
u r
organisation’s risk, control and compliance frameworks.
n n
t a
The Audit & Risk Committee receives external audit 
a nc
b
The Agency operates a number of committees which are 
i
reports and monitors management action in respect of 
l e
it  a
y
directly involved in the oversight of risk management as 
these reports.
nd 
documented in their respective charters, including:
During the year, the Committee has met separately with 
 
\
Management Committee
the external auditors in the absence of management.
f I
u n
 
\
Investment Committee
t v
u e
r s
Fraud control
e g tin
 
\
Operational Risk & Compliance Committee. 
e g f
The Agency undertook a regular fraud and corruption risk 
ne o
Each Agency committee considers risks within the 
r r t
assessment and updated its Fraud and Corruption Control 
ati h
scope of its oversight role. For example, the Investment 
o
Plan during the year which was reviewed and approved by 
e b
ns o
Committee has oversight of investment risks. 
e
the Agency’s Operational Risk & Compliance Committee 
n
f A e
and the Board’s Audit & Risk Committee.
fi
u t o
s
Risk culture
t f 
Fraud and corruption control initiatives are embedded into 
ra  
li
the Agency’s internal control framework. Key controls 
a
Risk culture is a key component of the broader 
ns
organisational culture. The Risk Team assists in 
such as segregation of duties, approval hierarchies, dual 
promoting a positive risk culture by:
signatories and third party due diligence form part of the 
mitigation strategies. 
 
\
championing quality risk conversations at key Agency 
and Board Committees
Cyber security
2 A
0 n
 
\
steering the organisation towards appropriate 
1 n
8
As part of the Agency’s internal control framework, 
u
-
responses to incidents, including any appropriate 
2 a
0 l R
a specific IT risk management framework has been 
1
training or adjustments to control
9 e
established to provide assurance that IT-related 
por
 
\
developing and implementing a framework that 
risks, including cyber risk, are identified, managed and 
t  
facilitates clarity of individual roles, responsibilities 
monitored. A defence-in-depth cyber security strategy 
and accountabilities.
has been implemented to assist in identifying, managing, 
and monitoring the cybersecurity landscape, threats, 
Internal audit
technologies and controls.
Deloitte Touche Tohmatsu provides internal audit 
services reporting to the Audit & Risk Committee and 
has full access to staff and information when conducting 
its reviews. 
The Audit & Risk Committee receives internal reports and 
monitors management action in respect of these reports.
During the year, the Committee has met separately with 
the internal auditors in the absence of management.

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82
05
Our people
Life at the Future Fund
We all want to make a difference in some way. What we 
respect and care about each other, where staff challenge 
do at the Future Fund every day will make a difference to 
and support each other to be their best and where people 
all Australians.
are acknowledged and rewarded for their contributions.
Our people come to work every day expecting to do 
Our values define how we approach our work. They are:
meaningful work with the opportunity to learn and 
contribute to the success of our organisation.
 
\
We focus on what matters. Everything we do is 
focused on achieving our purpose, we don’t get 
Our ‘one team, one purpose’ philosophy drives our culture 
sidetracked by distractions.
and the way we work. The philosophy extends into all 
 
\
We always do the right thing by our country, our 
aspects of our organisation.
organisation and our team.
We are committed to providing our staff with a positive 
 
\
We work together to achieve the best outcome every 
culture, exemplified by colleagues and leaders who 
time and ultimately to achieve our purpose.

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83
Investing in our people and culture Developing our people
We have a well-established training policy with 
We recognise that the capability of our staff is at the 
05
professional development budgets available for all staff. 
pe O
heart of our success. That is why our organisation’s 
u
op r 
business plan identifies investing in our people and 
In 2018-19 we launched a new online tool called 
 
le
culture as one of our three key strategic priorities. 
mylearning which has become the central location 
for employee development. Through this tool we are 
Progress in 2018-19
delivering online training modules to assist new starters 
Investing in our leaders
during their onboarding and induction. We have also 
developed a set of compliance training modules for 
We recognise the critical importance of leadership in 
ongoing staff on a broad range of topics, including 
f I
building and maintaining a strong culture and positive 
information protection and disclosure, dealing with inside 
u n
t v
u e
working environment, and in extracting the best from 
information, and reputation risk awareness. 
r s
e g ti
our workforce.
n
e g f
Through mylearning staff can also access an online 
ne o
Over the last three years we have increased our focus 
training planner where they can capture all external 
r r t
at
on leadership development, reflecting that leaders of 
i h
development activities they have undertaken. This 
o e b
n
a growing organisation face new demands. This has 
s o
professional development record will assist our staff to 
en
f A
included delivering in-house training for managers on 
e
track their development as they move through their career. 
fi
u t o
leadership fundamentals and project leadership. 
s
Bedding down the organisation of the future
t f 
ra  
In the year ahead, we will build on this investment in our 
lia
In 2017-18 we were focused on designing how our 
n
leadership layer through a comprehensive, multi-module 
s
leadership program designed specifically for our context 
organisation needed to operate going into the future. 
and needs. 
This included making a range of changes to our 
2 A
0 n
1 n
8 u
-2 a
0 l R
19 eport  
During the year Richard Large, Chief Technology Officer, Sue Brake, Deputy Chief Investment Officer, Portfolio Strategy, and Daniel Doyle, Head of 
Investment Data Management joined our organisation, further strengthening our investment, data and technology functions as the organisation matures 
and goes into its second decade.

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84
structure to strengthen our investment, technology and 
 
\
implementing our flexible work arrangement, mytime, 
risk functions as the organisation matures and goes 
which allows our people to manage their time in a way 
into its second decade.
that works for them
In 2018-19 we focused on bedding down the restructure, 
 
\
improving our technology capability to support 
including appointing internal staff and external hires to 
flexible work practices
key leadership positions.
 
\
delivering interview training for hiring managers which 
Flexible working
includes unconscious bias training to raise awareness 
which can lead to changes in behaviour.
We are committed to creating a workplace where 
everyone feels that there is a healthy balance in all they 
Work, health and safety
do. We believe this will support a culture of inclusion, 
Employee safety and wellbeing continues to be a focus 
trust and respect and will encourage innovation, 
for the organisation.
creativity, productivity, discretionary effort and focus.
Our Work Health & Safety Committee operated 
Our mytime policy enables staff to make choices 
throughout the year and undertook safety audit reviews of 
about when, where and for how long they engage in 
the office spaces.
work-related tasks, supporting staff to manage their 
own time to balance the multiple demands from life and 
We ensured new staff were informed of our ergonomic 
work. During 2018-19, 13 employees accessed mytime 
principles of work space management. First aid and fire 
arrangements.
warden training was also provided.
In addition to mytime, formal flexible work arrangements 
A range of wellbeing initiatives including health 
are available to all staff. This includes personal leave 
checks and awareness programs were delivered 
arrangements for primary and secondary carers. At 
throughout the year.
30 June 2019, 21 employees had flexible work 
We recorded no lost-time injuries for the period.
arrangements in place. 
Diversity and inclusion
Our workforce
Our workforce at 30 June 2019 was 155 staff. 
We focus on diversity and inclusion because it’s the 
right thing to do. We also believe the best business and 
We welcomed 22 new starters during the year: 13 were 
investment decisions are made by teams that can bring 
replacements for existing roles, and nine were for new 
together diverse views.
roles. We had 25 internal promotions and five internal 
secondments. 
We continue to make good progress against our Inclusion 
and Diversity Plan, which provides a framework for how 
Our central office is located in Melbourne. We have 
we will achieve an inclusive and diverse culture.
an office in Sydney and a small number of staff have 
arrangements in place to regularly work across both 
The strategies and initiatives we have put in place include:
locations. 
 
\
encouraging females within our organisation to apply 
A strong positive culture and high level of engagement 
for senior roles
is reflected in the Human Resource statistics: lost 
time injuries – nil; absentee rate – 1.7%. We anticipated 
 
\
encouraging the executive recruitment agencies we 
work with to provide balanced shortlists in terms of 
that our turnover rate would increase as a result of 
gender representation, as well as a greater mix of 
our restructure. Typically it is single figures, however 
cultural backgrounds
this year it was 18.6%. This includes positions made 
redundant as a result of the restructure. 

---

85
Headcount by business area at 30 June 2019
05
Investment
58
pe Ou
op r 
Operations & IT
42
 
le
Finance
22
Other
33
Notes: Other includes: CEO’s Office, Public Affairs & Strategic Relations, Organisational Development and Legal.
f I
u n
t v
u e
r s
e g ti
Absenteeism rate (%) over time
n
e g f
ne o
r r t
2016-17
1.8
ati h
o e b
n
2017-18
1.9
s o en
f A e
2018-19
1.7
fi
u t o
st f 
ra  
lians
Turnover rate (%) over time
2016-17
6.5
2 A
2017-18
5.2
0 n
1 n
8 u
2018-19
18.6
-2 a
0 l R
19 eport  
A full breakdown of our workforce in accordance with the reporting requirements under the PGPA Act is on the 
following page.
All Agency staff are employed under the Public Service Act 1999.

---

86
Ongoing employees at 30 June 2019
Male 
Female 
Indeterminate
Total 
Full- 
Part- 
Total 
Full- 
Part- 
Total 
Full- 
Part- 
Total 
time
time
Male
time
time Female
time
time indeter-
minate
SES 3 
1
–
1
–
–
–
–
–
–
1
SES 2 
3
–
3
–
–
–
–
–
–
3
SES 1
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
EL 2
 26
 3
 29
 12
 –
 12
 –
 –
 –
 41
EL 1
 8
 –
 8
 3
 –
 3
 –
 –
 –
 11
APS 6
 12
 –
 12
 11
 7
 18
 –
 –
 –
 30
APS 5
 12
 –
 12
 13
 2
 15
 –
 –
 –
 27
APS 4
 6
 –
 6
 18
 4
 22
 –
 –
 –
 28
APS 3
–
–
–
1
1
2
–
–
–
2
APS 2
–
–
–
2
–
2
–
–
–
2
APS 1
–
–
–
–
–
–
–
–
–
–
Other 
 –
 –
 –
 –
 –
 –
 –
 –
– 
 –
Total
68
3
71
60
14
74
–
–
–
145
Non-ongoing employees at 30 June 2019
Male 
Female 
Indeterminate
Total 
Full- 
Part- 
Total 
Full- 
Part- 
Total 
Full- 
Part- 
Total 
time
time
Male
time
time Female
time
time indeter-
minate
SES 3 
–
–
–
–
–
–
–
–
–
–
SES 2 
–
–
–
–
–
–
–
–
–
–
SES 1
 –
 –
 –
 –
 –
–
 –
 –
 –
 –
EL 2
 1
 –
 1
 –
 –
 –
 –
 –
 –
 1
EL 1
 1
 –
 1
 –
 –
 –
 –
 –
 –
 1
APS 6
 –
 –
 –
 2
 –
 2
 –
 –
 –
 2
APS 5
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
APS 4
 –
 –
 –
 2
 1
 3
 –
 –
 –
 3
APS 3
1
–
1
–
1
1
–
–
–
2
APS 2
1
–
1
–
–
–
–
–
–
1
APS 1
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
Other 
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
Total
4
–
4
4
2
6
–
–
–
10

---

87
Ongoing employees at 30 June 2018
05
Male 
Female 
Indeterminate
Total 
pe Ou
Full- 
Part- 
Total 
Full- 
Part- 
Total 
Full- 
Part- 
Total 
op r  
l
time
time
Male
time
time Female
time
time indeter-
e
minate
SES 3 
1
–
1
–
–
–
–
–
–
1
SES 2 
3
–
3
–
–
–
–
–
–
3
SES 1
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
f I
EL 2
 29
 2
 31
 11
 –
 11
 –
 –
 –
 42
u n
t v
u e
r s
EL 1
 4
 –
 4
 4
 –
 4
 –
 –
 –
 8
e g tin
e g f
APS 6
 15
 –
 15
 13
 4
 17
 –
 –
 –
 32
ne o
r r t
a
APS 5
 13
 –
 13
 9
 5
 14
 –
 –
 –
 27
ti h
o e b
n
APS 4
 10
 –
 10
 14
 4
 18
 –
 –
 –
 28
s o en
f A e
APS 3
–
–
–
2
–
2
–
–
–
2
fi
u t o
st f 
APS 2
–
–
–
3
–
3
–
–
–
3
ra  
lia
APS 1
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
ns
Other 
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
Total
75
2
77
56
13
69
–
–
–
146
2 A
0 n
1 n
8 u
Non-ongoing employees at 30 June 2018
-2 a
0 l R
19 e
Male 
Female 
Indeterminate
Total 
port 
Full- 
Part- 
Total 
Full- 
Part- 
Total 
Full- 
Part- 
Total 
 
time
time
Male
time
time Female
time
time indeter-
minate
SES 3 
–
–
–
–
–
–
–
–
–
–
SES 2 
–
–
–
–
–
–
–
–
–
–
SES 1
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
EL 2
 1
 –
 1
 –
 –
 –
 –
 –
 –
 1
EL 1
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
APS 6
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
APS 5
 2
 –
 2
 1
 –
 1
 –
 –
 –
 3
APS 4
 –
1
 1
 4
 1
 5
 –
 –
 –
 6
APS 3
1
–
1
1
2
3
–
–
–
4
APS 2
1
–
1
–
–
–
–
–
–
1
APS 1
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
Other 
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
Total
5
1
6
6
3
9
–
–
–
15

---

88
Employees by ful -time and part-time status at 30 June 2019
Ongoing 
Non-ongoing 
Total 
Full- 
Part- 
Total 
Full- 
Part- 
Total non-
time
time
ongoing
time
time
ongoing
SES 3 
1
–
1
–
–
–
1
SES 2 
3
–
3
–
–
–
3
SES 1
 –
 –
 –
 –
 –
 –
 –
EL 2
 38
 3
 41
 1
 –
 1
 42
EL 1
11
 –
 11
 1
 –
 1
 12
APS 6
 23
 7
 30
 2
 –
 2
 32
APS 5
 25
 2
 27
 –
 –
 –
 27
APS 4
 24
 4
28
 2
 1
 3
 31
APS 3
1
1
2
1
1
2
4
APS 2
2
–
2
1
–
1
3
APS 1
 –
 –
 –
 –
 –
 –
 –
Other 
 –
 –
 –
 –
 –
 –
 –
Total
128
17
145
8
2
10
155
Employees by ful -time and part-time status at 30 June 2018
Ongoing 
Non-ongoing 
Total 
Full- 
Part- 
Total 
Full- 
Part- 
Total non-
time
time
ongoing
time
time
ongoing
SES 3 
1
–
1
–
–
–
1
SES 2 
3
–
3
–
–
–
3
SES 1
 –
 –
 –
 –
 –
 –
 –
EL 2
 40
 2
 42
 1
 –
 1
 43
EL 1
 8
 –
 8
 –
 –
 –
 8
APS 6
 28
 4
 32
 –
 –
 –
 32
APS 5
 22
 5
 27
 3
 –
 3
 30
APS 4
 24
 4
 28
 4
 2
 6
 34
APS 3
2
–
2
2
2
4
6
APS 2
3
–
3
1
–
1
4
APS 1
 –
 –
 –
 –
 –
 –
 –
Other 
 –
 –
 –
 –
 –
 –
 –
Total
131
15
146
11
4
15
161

---

89
Employment type by location at 30 June 2019
05
Ongoing 
Non-ongoing 
Total 
pe Ou
NSW
5
–
5
op r  
le
Qld
–
–
–
SA
–
 –
 –
Tas
 –
 –
–
Vic
140
10
150
WA
 –
–
 –
f I
u n
t v
ACT
–
–
 –
u e
r s
e g tin
NT
 –
 –
–
e g f
ne o
Overseas
 –
–
 –
r r t
ati h
o e b
Total
145
10
155
ns o enf Aefiut ostf ra lian
Employment type by location at 30 June 2018
s
Ongoing 
Non-ongoing 
Total 
NSW
–
–
–
Qld
–
–
–
2 A
0 n
1 n
SA
 –
 –
 –
8 u
-2 a
0 l R
Tas
 –
–
–
19 ep
Vic
 146
 15
 161
ort  
WA
 –
 –
 –
ACT
 –
 –
 –
NT
–
 –
 –
Overseas
 –
 –
 –
Total
146
15
161
Employment arrangements at 30 June 2019
SES
Non-SES
Total 
Individual employment contract
4
151
155
Total
4
151
155
No employees identified as indigenous in 2017-18 or 2018-19.

---

90
Remuneration 
Performance related pay tied to 
report
personal performance
Actual variable pay based on personal performance 
reflects an individual’s performance against key 
performance indicators (goals) and the organisation’s 
Remuneration strategy
values.
Remuneration for all Agency staff, including members 
Each individual’s goals align to the organisation’s 
of the Agency Management Committee, meets the 
strategic imperatives, which define what the Agency 
requirements outlined in the Australian Public Sector 
must do to succeed:
Workplace Bargaining Policy (the Bargaining Policy), 
which was introduced in March 2014, and later revised in 
 
\
The best portfolios to achieve our Investment 
Mandates.
October 2015 and 2018 to set the terms and conditions of 
employment for Australian Public Service entities.
 
\
A well-managed Agency with a talented, motivated 
and engaged team.
All employees, including SES and non-SES, operate on 
individual employment contracts.
 
\
Efficient, effective and fit-for-purpose processes and 
technology.
While Agency remuneration arrangements are determined 
by the Chair of the Board, as Accountable Authority for 
 
\
The trust and respect of Government, Parliament and 
the Agency, consultation with the Board is provided 
the investment community.
through the Board’s Remuneration & Nominations 
Committee.
Performance related pay tied to 
Performance related pay
investment performance
Actual variable pay based on Fund performance reflects 
In addition to fixed pay, ongoing staff have the 
the average performance over rolling three-year periods 
opportunity to earn a variable pay component known as 
for the Future Fund and is determined once performance 
Performance Related Pay (PRP), which is based on both 
results are audited and confirmed.
personal performance (Individual Plan) and investment 
performance (Fund Plan).
Performance related pay for investment performance 
is assessed against the Future Fund’s absolute return 
The mix of variable pay based on personal performance 
against its mandated target return over three years. 
and variable pay based on investment performance 
depends on the individual’s role, with investment 
performance a higher component of variable pay for 
investment staff.
All staff have some exposure to investment performance 
in their variable pay arrangements, which serves to help 
focus all employees on the pursuit of the mandated 
investment objectives.

---

91
Remuneration of Key Management  The Act prescribes that fees payable to Board members 
are determined by the Commonwealth Remuneration 
Personnel in 2018-19
Tribunal (the Tribunal).
05
pe O
Key Management Personnel (KMP) are those who have 
u
The Tribunals’ Determination 2018, taking effect from 
op r  
authority and responsibility for planning, directing and 
1 July 2018, set the annual fee payable to the Chair at 
le
controlling the activities of the Board and Agency directly 
$210,460 and the fee for other members at $105,230.
and indirectly throughout the year. This represents 
members of the Board and members of the Agency’s 
The official travel entitlement for Board members was set 
Management Committee.
at Tier 1. Board members are not eligible for performance 
related payments.
The Board of Guardians and the Agency are established 
During 2018-19, the Guardians of the Fund were as 
f I
by the Future Fund Act 2006 (the Act). In accordance 
u n
t v
follows:
u e
with the Act members of the Board are appointed by the 
r s
e g ti
responsible Ministers.
n
e g f
ne o
r r t
at
Future Fund Board of Guardians
i h
o e b
ns o e
Name
Title 
n
f A efi
Hon Peter Costello AC
Chairman
u t o
st f 
r
Ms Erin Flaherty
Board member
a  
lian
Mr John Fraser1
Board member
s
Ms Carolyn Kay 
Board member
Mr John Poynton AO
Board member
Mr Michael Wachtel
Board member
2 A
0 n
Dr Jane Wilson
Board member
1 n
8 u
-2 a
Notes: 
0 l R
19 ep
1.  John Fraser’s Board term commenced on 12 November 2018.
ort  
During 2018–19, the Agency’s Management Committee comprised the following:
Management Committe
Name
Title 
Mr David Neal
Chief Executive Officer
Dr Raphael Arndt
Chief Investment Officer
Mr Richard Large1
Chief Technology Officer
Mr Paul Mann
Chief Financial Officer
Mr Gordon McKellar
Chief Operating Officer
Ms Elizabeth McPherson
Chief Culture Officer
Mr Cameron Price
General Counsel and Chief Risk Officer
Notes: 
1.  Richard Large commenced with the organisation on 11 February 2019.

---

92
Remuneration mix for 
at risk performance related pay linked to investment 
performance. Those in non-investment focused roles 
Management Committe
have at risk performance related pay more closely tied 
As is the case for all staff, remuneration for members of 
to the delivery of personal objectives that support the 
the Management Committee includes both fixed and at 
implementation of the business strategy.
risk performance related pay. At risk performance related 
The following table summarises the composition of at 
pay includes elements tied to investment performance 
risk performance related pay for each member of the 
(Fund Plan) and personal performance (Individual Plan).
Management Committee.
Executives with greater influence over the investment 
portfolio have a larger proportion of their available 
At risk performance related pay for each member of the Management Committee in 2018-19
Maximum at risk 
% of at risk performance 
% of at risk performance 
performance related 
related pay tied to 
related pay tied to 
Name
pay as a % of fixed  investment performance 
personal performance 
remuneration
(Fund Plan)
(Individual Plan)
Mr David Neal
120
70
30
Dr Raphael Arndt
120
70
30
Mr Richard Large1
45
25
75
Mr Paul Mann
55
25
75
Mr Gordon McKellar
55
25
75
Ms Elizabeth McPherson
45
25
75
Mr Cameron Price
45
25
75
Notes: 
1.  Richard Large commenced with the organisation on 11 February 2019.
Remuneration outcomes for Key 
The use of rolling three-year periods for the calculation 
of absolute investment performance aligns to the 
Management Personnel in 2018-19 organisation’s long-term investment objective.
Remuneration outcomes for members of the Board are set 
At 30 June 2019, over three years the Future Fund earned 
by the Determination of the Remuneration Tribunal.
$39.8 billion, returning 9.8% per annum.
Remuneration outcomes for members of the Management 
Committee reflect the combination of fixed pay and 
performance related pay as outlined above.

---

93
Key remuneration outcomes for Key Management Personnel in 2018-19
Post em-
Termi-
05
ployment 
nation 
Total remu-
pe O
Short-term benefits
benefits
Other long-term benefits
benefits
neration ($)
u
op r  
Other 
Superan-
le
benefits 
nuation 
Long 
Other 
Base 
and 
contribu-
service 
long-term 
Salary 
Bonuses  allowances 
tions 
leave 
benefits1 
Name
Position title
($)
($)
($)
($)
($)
($)
David Neal
Chief Executive 
Officer
648,591
770,759
 –
25,000
23,432
 –
 – 1,467,782
f I
u n
Raphael 
Chief Investment 
t v
664,832
759,367
– 
20,532
18,733
– 
–  1,463,464
u e
Arndt
Officer
r s
e g tin
Richard 
Chief 
e g f
n
Large2
Technology 
e o
196,546
67,206
– 
15,700
3,001
– 
– 
282,453
r r t
a
Officer
ti h
o e b
n
Chief Financial 
s o e
Paul Mann
492,826
232,116
– 
33,282
19,571
– 
– 
777,795
n
Officer
f A efi
u t o
Gordon 
Chief Operating 
s
524,262
273,784
 –
33,282
17,317
 –
 –
848,645
t f 
r
McKellar
Officer
a  
lia
Elizabeth 
Chief Culture 
n
510,489
197,136
– 
33,282
19,456
– 
– 
760,363
s
McPherson
Officer
Cameron 
General Counsel 
Price
and Chief Risk 
524,207
– 
– 
33,282
16,818 214,540
– 
788,847
Officer
2 A
Peter 
0 n
Chairman
209,791
– 
699
19,927
–
–
–
230,417
1 n
Costello 
8 u
-2 a
Erin 
0 l R
Board Member
1
104,895
– 
478
9,964
–
–
–
115,337
9 e
Flaherty
por
John 
t 
Board Member
 
66,644
– 
130
6,247
–
–
–
73,021
Fraser3
Carolyn 
Board Member
104,895
–
443
9,964
–
–
–
115,302
Kay
John 
Board Member
104,895
–
1,624
9,964
–
–
–
116,483
Poynton
Michael 
Board Member
104,895
–
427
9,964
–
–
–
115,286
Wachtel
Jane 
Board Member
104,896
–
455
16,151
–
–
–
121,502
Wilson
Notes: 
For the purposes of reporting requirements under the PGPA Act, all Future Fund senior executives are captured in the Key Management Personnel disclosure.
1.  Under the Agency’s Deferred Earnings Plan, staff are able to defer receipt of a proportion of their Performance Related Pay payable to them in a 
given financial year and have this treated as a notional investment in the Future Fund.
2.  Richard Large commenced with the organisation on 11 February 2019.
3.  John Fraser’s Board term commenced on 12 November 2018.

---

94
Remuneration outcomes for other highly paid staff in 2018-19
Short-term benefits
Post em-
Other long-term benefits
Termination  Total remu-
ployment 
benefits
neration
benefits
Average 
Average 
other 
superan-
Average 
benefits 
nuation 
Average 
other 
Average 
Average 
Total re-
Number of 
Average 
Average 
and 
contribu- long service 
long term 
termination 
total remu-
muneration 
other highly 
base salary 
bonuses 
allowances 
tions 
leave 
benefits1 
benefits 
neration 
bands
paid staff
($)
($)
($)
($)
($)
($)
($)
($)
$220,001- 
6
169,153
33,872
– 
18,894
5,772
4,490
– 
232,181
$245,000
$245,001- 
8
195,166
21,762
 –
23,887
5,386
8,892
 –
255,093
$270,000
$270,001- 
5
181,915
71,841
– 
16,771
4,986
7,857
– 
283,370
$295,000
$295,001- 
2
212,038
62,195
 –
27,786
8,211
– 
 –
310,229
$320,000
$320,001- 
8
203,548
81,354
– 
19,440
8,788
16,323
– 
329,453
$345,000
$345,001- 
2
256,437
37,734
 –
23,297
7,236
25,871
 –
350,573
$370,000
$370,001- 
4
242,330
89,244
– 
22,963
7,596
20,213
– 
382,345
$395,000
$395,001- 
2
280,559
85,109
– 
24,291
19,258
– 
– 
409,217
$420,000
$420,001- 
–
– 
– 
– 
– 
– 
 –
– 
– 
$445,000
$445,001- 
2
239,796
177,497
 –
20,005
13,353
 –
 –
450,651
$470,000
$470,001- 
2
282,383
153,670
 –
20,329
18,239
 –
 –
474,621
$495,000
$495,001- 
4
313,464
159,287
 –
25,700
8,634
 –
 –
507,085
$520,000
$520,001- 
4
315,160
78,861
– 
25,955
11,666
100,936
– 
532,578
$545,000
$545,001- 
1
294,310
227,726
– 
24,999
21,312
– 
– 
568,347
$570,000
$570,001- 
–
– 
– 
 –
 –
– 
 –
 –
– 
$595,000
$595,001- 
1
327,478
250,815
 –
24,999
9,316
 –
 –
612,609
$620,000
$620,001- 
1
366,304
229,792
– 
24,999
10,130
 –
– 
631,225
$645,000
$645,001- 
–
– 
 –
– 
– 
– 
 –
– 
– 
$670,000

---

95
Short-term benefits
Post em-
Other long-term benefits
Termination  Total remu-
05
ployment 
benefits
neration
pe O
benefits
u
op r  
Average 
Average 
le
other 
superan-
Average 
benefits 
nuation 
Average 
other 
Average 
Average 
Total re-
Number of 
Average 
Average 
and 
contribu- long service 
long term 
termination 
total remu-
muneration 
other highly 
base salary 
bonuses 
allowances 
tions 
leave 
benefits1 
benefits 
neration 
bands
paid staff
($)
($)
($)
($)
($)
($)
($)
($)
$670,001- 
–
– 
– 
 –
– 
– 
– 
– 
– 
$695,000
f I
u n
t v
u e
$695,001- 
r s
e g
1
319,791
317,309
– 
58,830
18,176
– 
– 
714,106
tin
$720,000
e g f
ne
$720,001- 
o
r r t
1
360,358
329,963
 –
24,999
16,617
– 
 –
731,937
a
$745,000
ti h
o e b
n
$745,001- 
s o e
–
– 
– 
– 
– 
– 
– 
 –
– 
n
f A
$770,000
efi
u t o
$770,001- 
st f 
1
382,253
363,749
– 
24,999
12,570
 –
– 
783,571
ra  
$795,000
lian
$795,001- 
s
1
379,550
261,299
 –
33,282
11,913
128,700
– 
814,744
$820,000
$820,001- 
1
383,603
396,358
– 
24,999
16,363
– 
 –
821,324
$845,000
$845,001- 
2 A
–
– 
– 
– 
– 
– 
 –
 –
– 
0 n
$870,000
1 n
8 u
-2 a
$870,001- 
0 l R
–
– 
 –
– 
– 
– 
 –
 –
– 
1
$895,000
9 epo
$895,001- 
rt 
–
– 
– 
 –
 –
– 
 –
 –
– 
 
$920,000
$920,001- 
1
431,391
– 
 –
24,999
18,563
449,598
 –
924,551
$945,000
$945,001- 
1
444,569
481,629
 –
20,539
12,156
– 
– 
958,893
$970,000
$970,001- 
–
– 
– 
– 
– 
– 
 –
 –
– 
$995,000
$995,001- 
–
– 
 –
– 
– 
– 
 –
 –
– 
$1,020,000
$1,020,001- 
–
– 
– 
 –
 –
– 
 –
 –
– 
$1,045,000
$1,045,001- 
2
460,795
563,807
– 
22,766
17,076
– 
– 
1,064,444
$1,070,000
Notes: 
1.  Under the Agency’s Deferred Earnings Plan, staff are able to defer receipt of a proportion of their Performance Related Pay payable to them in a 
given financial year and have this treated as a notional investment in the Future Fund.

---

96
Remuneration of all staff in  
In addition to fixed pay, ongoing staff have the opportunity 
to earn a variable pay component known as Performance 
2018-19 
Related Pay (PRP). Non-salary benefits are also available 
While the Agency operates on individual employment 
to staff, reflecting our commitment to ensuring our people 
contracts rather than an enterprise agreement, it adjusts 
have every opportunity to balance their work and life. We 
its practices to meet the requirements of the Bargaining 
support and encourage flexible working arrangements 
Policy and associated Directions for fixed pay (which 
to cater for family, study, community and similar 
includes superannuation). The Bargaining Policy and 
commitments. 
Directives apply for three years: 2017-18, 2018-19 and 
Other non-salary benefits include annual flu vaccinations, 
2019-20.
skin and health checks, ergonomic assessments 
and furniture, contributions to relevant professional 
memberships and salary sacrifice arrangements.
Salary ranges by classification level in 2018-19
Minimum salary ($)
Maximum salary ($)
SES 3 
388,000
700,000
SES 2 
388,000
700,000
SES 1
388,000
700,000
EL 2
268,000
589,000
EL 1
196,000
332,000
APS 6
145,000
253,000
APS 5
114,000
191,000
APS 4
82,000
137,000
APS 3
56,000
99,000
APS 2
56,000
99,000
APS 1
-
-
Other 
 -
 -
TOTAL1
56,000
700,000 
Notes: 
The Future Fund Management Agency operates a classification system that ranges from FFMA1 – FMMA7. In line with reporting requirements under 
the PGPA Act remuneration information is now reported in accordance with the Australian Public Service classification system.
Actual salaries fall within the available ranges shown above. Salaries are inclusive of superannuation. Where a staff member sits in a range is influenced 
by market data. How and when a staff member moves through a range is influenced by market data, organisational and personal performance.
1.  In line with reporting requirements under the PGPA Act, the total minimum salary is intended to show the lowest minimum salary available. 
Likewise, the total maximum salary is intended to show the highest maximum salary available.

---

97
Performance Related Pay
the individual’s role, with fund performance generally a 
higher component of variable pay for investment staff.
As highlighted previously, in addition to fixed pay, 
05
At 30 June 2019, over three years the Future Fund earned 
pe O
ongoing staff have the opportunity to earn a variable pay 
$39.8 billion, returning 9.8% per annum.
u
op r 
component known as Performance Related Pay (PRP), 
 
le
which is based on both individual performance and fund 
The payments detailed in the table below include pro rata 
performance.
performance pay for staff who were not employed for the 
full 12-month cycle but were eligible for payment.
The mix of variable pay based on individual performance 
and variable pay based on fund performance depends on 
f I
Performance pay by classification level in 2018-19
u n
t v
u e
r s
e g t
Number of 
Aggregated 
in
e g f
employees receiving  (sum total) of all 
Average of all 
Minimum 
Maximum 
ne o
r
performance pay 
payments made 
payments made 
payment made 
payment made 
r t
ati h
($)
($)
($)
($)
($)
o e b
ns o e
SES 3 
1
770,759
770,759
770,759
770,759
n
f A efi
SES 2 
3
1,265,267
421,756
232,116
759,367
u t o
st f 
ra  
SES 1
–
–
– 
–
–
lian
EL 2
42
7,656,299
182,293
5,275
568,132
s
EL 1
12
1,053,461
87,788
30,461
212,639
APS 6
30
1,404,461
46,815
7,826
136,715
APS 5
27
690,949
25,591
1,268
57,071
2 A
0 n
APS 4
28
241,888
8,639
291
24,088
1 n
8 u
-2 a
APS 3
2
8,535
4,268
537
7,998
0 l R
19 ep
APS 2
2
9,315
4,658
3,264
6,051
ort 
APS 1
–
–
– 
–
–
 
Other 
 –
–
– 
– 
– 
TOTAL
147
13,100,934 
89,122 
291 
770,759 
Notes: 
The Future Fund Management Agency operates a classification system that ranges from FFMA1 – FMMA7. In line with reporting requirements under 
the PGPA Act remuneration information is now reported in accordance with the Australian Public Service classification system. 

---

98
06
Financial 
statements
Financial statements for the financial year ended 30 June 2019
Independent Auditor’s Report 
 99 
Statement by the Chair of the Board of Guardians and Chief Financial Officer 
 103 
Statement of comprehensive income 
104 
Statement of financial position 
 105
Statement of cash flows 
 106 
Statement of changes in equity 
 107 
Schedule of commitments 
 108 
Notes to and forming part of the financial statements 
 109
These financial statements consist of the Future Fund Management Agency and the Board of Guardians.

---

99
 
 
 
Auditor-General for Australia 
 
06
s F
 
ta in
t a
e
 
nci
m
 
e a
nts l 
INDEPENDENT AUDITOR’S REPORT 
To the Minister for Finance  
Opinion  
In my opinion, the financial statements of the  Future Fund Management Agency and Board of Guardians 
(‘together the Entity’) for the year ended 30 June 2019: 
f I
u n
t v
(a)  comply with Australian Accounting Standards and the Public Governance, Performance and Accountability 
u e
r s
e g
(Financial Reporting) Rule 2015; and 
tin
e g f
(b)  present fairly the financial position of the Entity as at 30 June 2019 and its financial performance and cash 
ne o
flows for the year then ended. 
r r t
ati h
o e b
The financial statements of the  Entity, which I have audited,  comprise  the fol owing statements as at 
ns o
30 June 2019 and for the year then ended: 
en
f A e
  Statement by the Chair of the Future Fund Board of Guardians and Chief Financial Officer of the Future Fund 
fi
u t o
Management Agency; 
st f 
r
  Statement of comprehensive income; 
a  
li
  Statement of financial position;  
an

s
  Statement of cash flows; 
  Statement of changes in equity; 
  Schedule of commitments; 
  Notes  to  and forming part of  the financial statements, comprising a summary of significant  accounting 
policies and other explanatory information. 
2 A
Basis for opinion 
0 n
1 n
8
I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which 
u
-2 a
incorporate the Australian Auditing Standards. My responsibilities under those standards are further described 
0 l R
1
in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent 
9 ep
of the Entity in accordance with the relevant ethical requirements for financial statement audits conducted by 
ort 
me. These include the relevant independence requirements of the Accounting Professional and Ethical 
 
Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) to the extent that they are 
not in conflict with the Auditor-General Act 1997. I have also fulfil ed my other responsibilities in accordance 
with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis 
for my opinion. 
Key audit matters 
Key audit matters are those matters that, in my professional judgement, were of most significance in my audit 
of the financial statements of the current period. These matters were addressed in the context of my audit of 
the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion 
on these matters. 
Key audit matter 
How the audit addressed the matter 
Valuation of col ective investment vehicles held at  To assess the controls over the valuation of al  
fair value through profit or loss  
collective investment vehicles I: 
Refer  to  Note 16.7  Fair Value Hierarchy (Col ective    inspected the custodian’s independent auditor’s 
Investment Vehicles) 
assurance report in respect of the design and 
As at 30 June 2019, collective investment vehicles (as 
operating effectiveness of relevant controls over 
the valuation of investments by the custodian; 
GPO Box 707 CANBERRA ACT 2601 
19 National Circuit  BARTON  ACT 
Phone (02) 6203 7300   Fax (02) 6203 7777 
 

---

100
defined in note 7.3) totaled $75 billion. 
  assessed the qualifications,  competence and 
Collective investment vehicles includes holdings of a 
objectivity  of the custodian’s independent 
diverse range of asset categories including debt, 
auditor; and 
private equity, hedge funds, and direct property,    tested the design and operating effectiveness of 
infrastructure and timberland assets. Valuation 
a sample of the controls in place at the Entity to 
techniques are varied depending on the particular 
assess  the valuation of collective investment 
asset category and holding. 
vehicles  whether they be performed  by the 
Al  investments are held in custody by the Entity’s 
custodian, the collective investment manager, a 
appointed custodian. 
valuation specialist or management. 
I consider the valuation of collective investment  I assessed, on a sample basis, the valuation of 
vehicles to be a key audit matter due to the size of  indirectly held single infrastructure and timberland 
the investments, and the inherent subjectivity and  investments as at 30 June 2019. To do so I: 
significant judgements and estimates required where    evaluated the qualifications,  competence and 
market data is not available  to determine the fair 
objectivity of the valuation expert used by 
value of these investments. 
management; 
In addition, disclosures  that support the user’s    tested the valuation models used including the 
understanding of the valuation of collective 
reasonableness of key assumptions regarding 
investment vehicles are complex. 
growth rates, discount rates and multiples 
 
applied to earnings within the models; and 
  performed a cross-check between 
management’s valuation and the valuation 
applied by comparable companies, including 
considering the underlying assumptions. 
To assess the valuation of all other collective 
investment vehicles as at 30 June 2019, on a sample 
basis, I: 
  agreed the fair value to capital account 
statements received from the underlying 
investment manager; 
  obtained audited financial statements of  each 
underlying collective investment vehicle as at 30 
June 2019, where available, and agreed the 
audited net asset value to the capital account 
statement; 
  where 30 June 2019 audited financial statements 
were unavailable, investigated significant 
movements  from the most recent  audited 
financial statements; and 
  performed an assessment of the audited 
financial statements of the collective investment 
vehicle which included considering the 
regulatory framework under which the financial 
statements were prepared, the accounting 
policies adopted and evaluating the 
qualifications, competence and objectivity of the 
audit firm performing the audit and the opinion 
provided. 
I assessed the appropriateness of the related 
disclosures in Note 16.7 to the financial statements. 
 
 
 

---

101
Other information 
The  Accountable  Authority is responsible for the other information. The other information comprises the 
information included in the annual report for the year ended 30 June 2019 but does not include the financial 
06
statements and my auditor’s report thereon. 
s F
ta in
My opinion on the financial statements does not cover the other information and accordingly I do not express 
t a
e nci
m
any form of assurance conclusion thereon. 
e a
nts l
In connection with my audit of the financial statements, my responsibility is to read the other information and, 
 
in doing so, consider whether the other information is materially inconsistent with the financial statements or 
my knowledge obtained in the audit, or otherwise appears to be material y misstated. 
If, based on the work I have performed, I conclude that there is a material misstatement of this other 
information, I am required to report that fact. I have nothing to report in this regard. 
Accountable Authority’s responsibility for the financial statements 
f I
u n
t v
As the Accountable Authority of the Entity, the Chair of the Future Fund Board of Guardians is responsible under 
u e
r s
e g
the  Public Governance, Performance and Accountability Act 2013  (the Act)  for the preparation and fair 
tin
presentation of annual financial statements that comply with Australian Accounting Standards and the rules 
e g f
n
made under the Act. The Chair of the Future Fund Board of Guardians is also responsible for such internal control 
e o
r r t
as the Chair of the Future Fund Board of Guardians determines is necessary to enable the preparation of financial 
ati h
statements that are free from material misstatement, whether due to fraud or error.  
o e b
ns o e
In preparing the financial statements, the Chair of the Future Fund Board of Guardians is responsible for 
n
f A e
assessing  the ability of the Entity to continue as a going concern, taking into account whether the Entity’s 
fi
operations wil  cease as a result of an administrative restructure or for any other reason. The Chair of the Future 
u t o
s
Fund Board of Guardians  is also responsible for disclosing, as applicable, matters related to going concern and 
t f 
ra  
using the going concern basis of accounting unless the assessment indicates that it is not appropriate. 
lian
Auditor’s responsibilities for the audit of the financial statements  
s
My objective is to obtain reasonable assurance about whether the financial statements as a whole are free from 
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. 
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance 
with the Australian National Audit Office Auditing Standards wil  always detect a material misstatement when it 
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the 
2 A
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis 
0 n
1 n
of the financial statements. 
8 u
-2 a
0 l R
As part of an audit in accordance with the Australian National Audit Office Auditing Standards, I exercise 
19 e
professional judgement and maintain professional scepticism throughout the audit. I also:  
por
  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or 
t  
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is 
sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material 
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, 
forgery, intentional omissions, misrepresentations, or the override of internal control; 
  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are 
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of 
the Entity’s internal control; 
  evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates 
and related disclosures made by the Accountable Authority; 
  conclude on the appropriateness of the Accountable Authority’s use of the going concern basis of accounting 
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or 
conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If I conclude 
that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related 
disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My 
conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future 
events or conditions may cause the Entity to cease to continue as a going concern; and 
 
 

---

102
 evaluate the overal  presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
I communicate with the Accountable Authority regarding, among other matters, the planned scope and timing 
of the audit and significant audit findings, including any significant deficiencies in internal control that I identify 
during my audit. 
From the matters communicated with the Accountable Authority, I determine those matters that were of most 
significance in the audit of the financial statements of the current period and are therefore the key audit matters. 
I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the 
matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my 
report because the adverse consequences of doing so would reasonably be expected to outweigh the public 
interest benefits of such communication. 
Australian National Audit Office 
Grant Hehir 
Auditor-General for Australia 
Canberra 
24 September 2019 

---

103
Statement by the Chair of the Future Fund Board of 
Guardians and Chief Financial Officer of the Future Fund 
06
s F
Management Agency
ta in
t a
e nci
m
In our opinion, the attached financial statements of the Future Fund Management Agency and the 
e a
nts
Board of Guardians (together the “Fund”) for the year ended 30 June 2019 comply with subsection 
l 
42(2) of the Public Governance, Performance and Accountability Act 2013 (“PGPA Act”), and are 
based on properly maintained financial records as per subsection 41(2) of the PGPA Act.
In our opinion, at the date of this statement, there are reasonable grounds to believe that the Fund 
will be able to pay its debts as and when they fall due. 
f I
u n
t v
In preparing the financial statements, the Fund has applied an exemption from sections 6, 8 and 
u e
r s
e g t
9 of the Financial Reporting Rules which has been provided by the Minister for Finance allowing 
in
e g f
the Fund to present a financial report in a format that complies with the ‘investment entity’ 
ne o
r r t
requirements under Australian Accounting Standards. The effect of this exemption is that the Fund 
ati h
o e b
will present its financial report as a single entity.
ns o enf Aefiut ostf ra lians
2 A
0 n
1 n
8 u
-2 a
0 l R
19 eport  
Hon P Costello AC
P Mann
Chair of the Board of Guardians 
Chief Financial Officer
24 September 2019
24 September 2019

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104
Statement of comprehensive income
for the financial year ended 30 June 2019
Notes
 Year ended 
 Year ended 
30 June 2019 
30 June 2018 
$’000 
$’000
INCOME
Dividends and imputation credits
3
6,078,029
4,012,071
Distributions
3
1,140,860
683,172
Interest income from financial assets not at 
44,957
28,740
fair value through profit or loss
Net gains on financial instruments at fair 
3
10,522,598
9,137,078
value through profit or loss
Net foreign currency (losses)/gains
3
(765,506)
(1,210,415)
Other income
14,249
3,548
TOTAL INCOME
17,035,187
12,654,194
EXPENSES
Investment management fees and advisory 
81,952
106,713
fees 
Investment manager performance fees
13,356
3,229
Custody fees
16,691
15,135
Brokerage, duties and other statutory 
21,332
31,557
charges
Other investment portfolio expenses
4,676
5,334
Agency employees’ remuneration
4
52,910
50,722
Other expenses
4,5
51,825
34,459
TOTAL EXPENSES
242,722
247,149
OPERATING RESULT FOR THE YEAR 
16,792,465
12,407,045
BEFORE TAX
Income tax expense
6
65,004
72,091
OPERATING RESULT FOR THE YEAR
16,727,461
12,334,954
Other comprehensive income for the year
-
-
TOTAL COMPREHENSIVE INCOME FOR 
16,727,461
12,334,954
THE YEAR
The above statement should be read in conjunction with the accompanying notes.

---

105
Statement of financial position
as at 30 June 2019
06
s F
Notes
 As at 
 As at 
ta in
t a
30 June 2019 
30 June 2018 
e nci
m
$’000 
$’000
e a
nts l 
ASSETS
Financial assets
Cash and cash equivalents
13
1,781,107
2,418,038
Receivables
8
1,515,267
1,715,788
f I
u n
t v
u e
Investments
7
160,309,641
144,199,434
r s
e g tin
Other financial assets
2,991
1,811
e g f
ne o
Total financial assets
163,609,006
148,335,071
r r t
ati h
o e b
Non-financial assets
ns o en
Plant and equipment
3,752
4,774
f A efi
u t o
Intangibles
2,944
3,474
st f 
ra  
Total non-financial assets
6,696
8,248
lians
TOTAL ASSETS
163,615,702
148,343,319
LIABILITIES
Financial liabilities
Investments
7
563,459
1,560,417
2 A
0 n
1 n
Payables
9
529,352
988,072
8 u
-2 a
0 l R
Total financial liabilities
1,092,811
2,548,489
19 ep
Non-financial liabilities
ort  
Employee provisions
10
 29,736 
28,960
Total non-financial liabilities
 29,736 
28,960
Tax liabilities
Deferred tax liabilities
 18,524
18,700
Total tax liabilities
 18,524 
18,700
TOTAL LIABILITIES
1,141,071
2,596,149
NET ASSETS
162,474,631
145,747,170
EQUITY AND AMOUNT ATTRIBUTABLE TO THE GOVERNMENT
Contributions by Government
11
 60,536,831 
60,536,831
Retained earnings
 101,937,800
85,210,339
TOTAL EQUITY AND AMOUNT 
162,474,631
145,747,170
ATTRIBUTABLE TO THE GOVERNMENT
The above statement should be read in conjunction with the accompanying notes.

---

106
Statement of cash flows
for the financial year ended 30 June 2019
Notes
 Year ended 
 Year ended 
30 June 2019 
30 June 2018 
$’000 
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Proceeds from sale of financial instruments 
122,555,198
130,781,920
at fair value through profit or loss
Purchase of financial instruments at fair 
(128,016,348)
(134,172,418)
value through profit or loss
Interest received
57,237
27,839
Dividends received
4,891,472
3,099,768
Distributions received
1,093,576
626,425
Franking credit refunds received
952,916
835,678
Net settlement of foreign exchange 
(1,816,670)
(244,199)
contracts
GST refund received
2,936
5,052
Other income received
4,200
3,206
Investment management fees and advisory 
(86,555)
(114,630)
fees paid
Investment manager performance fees paid
(7,187)
(32,671)
Custody fees paid
(14,309)
(13,795)
Brokerage, duties and other statutory 
(37,970)
(70,374)
charges paid
Taxes paid
(65,180)
(53,391)
Other expenses paid
(110,520)
(88,564)
Net cash (used in)/provided by operating 
13
(597,204)
589,846
activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant and equipment and 
(1,603)
(3,072)
software
Net cash used in investing activities
(1,603)
(3,072)
Net (decrease)/increase in cash held
(598,807)
586,774
Cash at the beginning of the reporting 
2,418,038
1,785,174
period
Effects of exchange rate changes on the 
(38,124)
46,090
balance of cash held in foreign currencies
Cash at the end of the reporting period 
13
1,781,107
2,418,038
The above statement should be read in conjunction with the accompanying notes.

---

107
Statement of changes in equity
for the financial year ended 30 June 2019
06
s F
Contributed 
Retained 
 Total 
ta in
t a
equity 
earnings 
Equity 
e nci
m
$’000
$’000 
$’000
e a
nts l 
Year ended 30 June 2019
Opening balance
60,536,831
85,210,339
145,747,170
Net operating result
-
 16,727,461
16,727,461
Other comprehensive income
-
-
-
f I
u n
t v
u e
Total comprehensive income
-
 16,727,461
16,727,461
r s
e g tin
Contributions made by Government
-
-
-
e g f
ne o
r
Closing balance 
60,536,831
101,937,800
162,474,631
r t
ati h
o e b
Year ended 30 June 2018
ns o en
Opening balance
60,536,831
72,875,385
133,412,216
f A efi
u t o
Net operating result
-
12,334,954
12,334,954
st f 
ra  
Other comprehensive income
-
-
-
lians
Total comprehensive income
-
12,334,954
12,334,954
Contributions made by Government
-
-
-
Closing balance 
60,536,831
85,210,339
145,747,170
2 A
The above statement should be read in conjunction with the accompanying notes.
0 n
1 n
8 u
-2 a
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19 eport  

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108
Schedule of commitments
as at 30 June 2019
Notes
 30 June 2019 
 30 June 2018 
$’000 
$’000
BY TYPE
CAPITAL COMMITMENTS
Collective investment vehicles
7.3
20,493,662
19,418,150
Corporate Credit (bank loans)
-
52
Total capital commitments 
20,493,662
19,418,202
OTHER COMMITMENTS
Operating leases1
12,237
14,413
Other commitments2
10,226
11,343
Total other commitments
20,290
25,756
BY MATURITY
CAPITAL COMMITMENTS
One year or less
20,493,662
19,418,202
Total capital commitments by maturity
20,493,662
19,418,202
OTHER COMMITMENTS
Operating lease commitments
One year or less
4,270
3,527
From two to five years
7,967
10,886
Five years and above
-
-
Total operating lease commitments by 
12,237
14,413
maturity
Other commitments
One year or less
8,184
9,124
From two to five years
2,042
2,219
Total other commitments by maturity
10,226
11,343
Note: Commitments are GST inclusive. 
1.  Operating lease commitments relate to rental commitments for the lease of property. Lease terms have on average 3 years remaining. The Fund 
has no option to purchase any leased items at the conclusion of the lease term.
2.  Other commitments relate to contractual obligations for the provision of internal audit services, payroll services and Board and Agency 
consultancies. 
The above schedule should be read in conjunction with the accompanying notes.

---

109
Notes to and forming part of the financial statements
for the financial year ended 30 June 2019
06
s F
Note
Description
Page
ta in
t a
e nci
1
Objectives of the Future Fund and the responsibilities of the Agency and the Board
110
m
e a
nts l
2
Summary of significant accounting policies
111
 
3
Dividends, distributions and net gains/(losses)
119
4
Expenses
120
5
Remuneration of Auditors
120
f I
u n
6
Income tax expense
121
t v
u e
r s
e g
7
Investments
121
tin
e g f
n
8
Receivables
131
e o
r r t
a
9
Payables
131
ti h
o e b
ns o
10
Provisions
131
en
f A efi
11
Contributions by Government
132
u t o
st f 
12
Unconsolidated subsidiaries and interests in unconsolidated structured entities
132
ra  
lia
13
Cash flow reconciliation
134
ns
14
Contingent liabilities and assets
134
15
Related party transactions
135
16
Financial instruments and financial risk management
136
2 A
17
Events occurring after reporting date
159
0 n
1 n
8 u
-
18
Special accounts
159
2 a
0 l R
19 e
19
Reporting of outcomes
160
por
20
Maturity Disclosure
161
t  
21
Budgetary reports
162

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110
Note 1
Objectives of the Future Fund and the responsibilities 
of the Agency and the Board
The Future Fund Act 2006 (as amended) (the “Act”) commenced on 3 April 2006 and established the Future Fund 
Special Account (the Fund Account), the Future Fund Board of Guardians (the “Board”) and the Future Fund Management 
Agency (the “Agency”), collectively referred to as the Future Fund (the “Fund”). The objective of the Act is to strengthen 
the Commonwealth’s long-term financial position.
The Future Fund will be available to cover costs that will be payable by the Commonwealth in relation to unfunded 
superannuation liabilities that will become payable during a period when an ageing population is likely to place 
significant pressure on the Commonwealth’s finances. 
Future Fund Management Agency 
The Agency is a statutory agency for the purposes of the Public Service Act 1999 (the “Public Service Act”) and is 
prescribed for the purposes of the Public Governance, Performance and Accountability Act 2013 (the “PGPA Act”). The 
Agency is responsible for implementing the investment decisions made by the Board.
The Agency is responsible for the operational activities associated with the investment of funds in the Fund Account. 
This includes the provision of advice to the Board on the investment of the portfolio and managing the Board’s contracts 
with investment managers, advisers and other service providers.
The Agency also supports the Board in the investment of the assets of the Building Australia Fund (“BAF”) and the 
Education Investment Fund (“EIF”) (together the Nation-building Funds), the DisabilityCare Australia Fund (“DCAF”), 
the Medical Research Future Fund (“MRFF”) and the Aboriginal and Torres Strait Islander Land and Sea Future Fund 
(“ATSILSFF”).
Future Fund Board of Guardians 
The Board is a body corporate with perpetual succession and has a separate legal identity to the Commonwealth.
The roles and responsibilities of the Board are set out in the Act. The Board is collectively responsible for the 
investment decisions of the Fund and for the safekeeping and performance of the assets of the Fund. As such, the 
Board’s primary role is to provide strategic direction to the investment activities of the Fund including the development 
and implementation of an investment strategy that adheres to the Investment Mandate.
The Board is also responsible for the investment of the assets of the Nation-building Funds, DisabilityCare Australia 
Fund, Medical Research Future Fund and Aboriginal and Torres Strait Islander Land and Sea Future Fund as set out in 
the Nation-building Funds Act 2008, the DisabilityCare Australia Fund Act 2013, the Medical Research Future Fund Act 
2015 and the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018. The assets and financial results 
of these funds do not form part of these financial statements.

---

111
Note 2
Summary of significant accounting policies
2.1 Basis of preparation of the financial statements
06
s F
These financial statements comprise the Agency and the Board, collectively referred to as the Future Fund (the Fund), 
ta in
prepared in accordance with Section 80 of the Act.
t a
e nci
m
e a
The financial statements are required by section 42 of the PGPA Act, and are general purpose financial statements 
nts l 
prepared on a going concern basis.
The financial statements have been prepared in accordance with:
 
\
Financial Reporting Rules (“FRR”) (being the Public Governance, Performance and Accountability Rule 2015) for 
reporting periods ending on or after 1 July 2018; and
f I
u n
t v
u e
 
\
Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (“AASB”) 
r s
e g tin
that apply for the reporting period.
e g f
ne o
r
In preparing the financial statements, the Fund has applied an exemption from sections 6, 8 and 9 of the Financial 
r t
ati h
Reporting Rules which has been provided by the Minister for Finance allowing the Fund to present a financial report in a 
o e b
ns o
format that complies with the investment entity requirements under Australian Accounting Standards. The effect of this 
en
f A e
exemption is that the Fund will present its financial report as a single entity.
fi
u t o
st f 
These financial statements have been prepared on an accrual basis and are in accordance with the historic cost 
ra  
l
convention, as modified by the revaluation of financial assets and financial liabilities (including derivative instruments) 
ians
at fair value through the profit or loss account and the revaluation of employee entitlements. Cost is based on the 
fair values of the consideration given in exchange for assets or the fair value of consideration or services received in 
exchange for the creation of a liability. 
The statement of financial position is presented on a liquidity basis as is common practice within the investment 
2 A
industry. Assets and liabilities are presented in decreasing order of liquidity and with no distinction between current and 
0 n
1 n
non-current. All balances are expected to be recovered or settled within 12 months except for:
8 u
-2 a
0 l R
 
\
investments in financial assets and liabilities. These investments are held for the longer term consistent with the 
19 ep
Fund’s investment mandate;
ort  
 
\
plant and equipment which are depreciated over their useful lives; and
 
\
certain employee liabilities such as leave entitlements.
Unless alternative treatment is specifically required by an accounting standard, assets and liabilities are recognised in 
the statement of financial position when and only when it is probable that future economic benefits or losses will flow, 
and the amounts of the assets or liabilities can be reliably measured.
Commitments, which are not liabilities or assets under Australian Accounting Standards are not recognised in the 
statement of financial position. They are reported as appropriate in the schedule of commitments.
Unless alternative treatment is specifically required by an accounting standard, revenues and expenses are recognised 
in the statement of comprehensive income when and only when the flow, consumption, gain or loss of economic benefits 
has occurred and can be reliably measured.
Significant Accounting Judgements and Estimates
In relation to collective investment vehicles, significant judgement is required in making assumptions and estimates 
which are inputs to the fair value of such investments. The Fund ensures that valuation principles applied are materially 
compliant with industry guidelines. Further details surrounding the judgements and estimates used to value these 
investments are disclosed in Note 16.6 and 16.7.

---

112
Note 2
Summary of significant accounting policies (continued)
2.1 Basis of preparation of the financial statements (continued)
Consolidation exemption for investment entities
The Fund meets the definition of an “investment entity” under AASB 10 Consolidated Financial Statements and does 
not consolidate its subsidiaries as listed in Note 12. Instead, those subsidiaries are investments and are measured at fair 
value through profit or loss. The Fund’s assessment of the investment entity definition is as follows: 
An investment entity is defined as an entity that:
 
\
obtains funds from one or more investors for the purpose of providing those investor(s) with investment management 
services;
 
\
commits to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, 
investment income or both; and
 
\
measures and evaluates the performance of substantially all of its investments on a fair value basis.
Regarding the first and second requirements of the definition, the Fund is a sovereign wealth fund that invests for 
the benefit of future generations of Australians which is generated through both capital appreciation and investment 
income. Furthermore, the performance of the investments made through subsidiaries are measured and evaluated on a 
fair value basis.
2.2 Statement of compliance
The financial report complies with Australian Accounting Standards as applicable to the Future Fund in accordance 
with the Financial Reporting Rules for the year ended 30 June 2019 made under the Public Governance, Performance 
and Accountability Act 2013. 
Australian Accounting Standards require the Fund to disclose Australian Accounting Standards that have not yet been 
applied by the Fund, for standards that have been issued by the AASB but are not yet effective at the reporting date. 
The Fund must also disclose new standards and interpretations affecting amounts reported in the current period and 
those standards adopted with no effect on the financial statements in the current period.
Adoption of new accounting standards in the current reporting period
The Fund has applied the following new and revised accounting standard which became effective for the annual 
reporting period commencing on 1 July 2018:
AASB 9 Financial Instruments, and the relevant amending standards (effective from 1 January 2018) 
AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and 
financial liabilities. The new standard had no significant impact on the recognition and measurement of the Fund’s 
financial instruments as they are at fair value through profit or loss.
AASB 15 Revenue from Contracts with Customers (effective from 1 January 2018) 
AASB 15 Revenue from Contracts with Customers addresses the recognition of revenue that reflects the consideration 
to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new standard 
had no significant impact on the recognition of revenue of other income as revenue is recognised when it is no longer 
subject to reversal.

---

113
Note 2
Summary of significant accounting policies (continued)
2.2 Basis of preparation of the financial statements (continued)
06
s F
Standards and amendments that will become effective in future reporting periods
ta in
t a
e nci
Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 
m
e a
2019 reporting period and have not been early adopted by the Fund. The Fund’s assessment of the impact of these new 
nts l 
standards and interpretations is set out below. The Fund intends to adopt all of the standards upon their application 
date.
AASB 16 Leases (effective from 1 January 2019) 
The purpose of this standard is to provide a comprehensive model for the identification of lease arrangements and their 
f I
u n
t v
treatment in the financial statements of both lessees and lessors. Lessees will be required to recognise all leases on 
u e
r s
e g
balance sheet, except for short-term leases and leases of low value assets. The Fund does not expect this to have a 
tin
e g f
material impact on the operating result of the Fund.
ne o
r r t
ati h
2.3 Financial assets and liabilities
o e b
ns o e
All investments of the Fund are in financial assets or financial liabilities for the purposes of the Government Finance 
n
f A efi
Statistics system in Australia as is required under section 16 of the Act. Should the Fund acquire non-financial assets, 
u t o
s
section 32 of the Act requires the Board to realise such assets as soon as practicable.
t f 
ra  
lia
Further details on how the fair values of financial instruments are determined are disclosed in Notes 16.6 and 16.7.
ns
2.3.1 Cash and cash equivalents
Cash means notes and coins held and any deposits held at call with a bank. Deposits held with a bank that are not at 
call are classified as financial assets at fair value through profit and loss. 
2 A
0 n
Cash does not include any amounts held in escrow accounts or margin accounts where its use is restricted. These are 
1 n
8 u
-
treated as investments.
2 a
0 l R
19 ep
2.3.2 Receivables
ort  
Receivables for goods and services, which have 30-day terms, are recognised at the nominal amounts due less any 
provision for bad and doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when 
collectability of the debt is no longer probable.
2.3.3 Investments
Collective Investment Vehicles are at fair value through profit or loss and all other Investments are designated at fair 
value through profit or loss. Subsequent to initial recognition, all investments are measured at fair value with changes in 
their fair value recognised in the statement of comprehensive income each reporting date.
Investments are recognised and derecognised on trade date where purchase or sale of an investment is under a 
contract whose terms require delivery of the investment within the timeframe established by the market concerned. 
Investments are initially measured at fair value.
Investments in collective investment vehicles are recorded at fair value on the date which consideration is provided 
to the contractual counterparty under the terms of the relevant subscription agreement. Any associated due diligence 
costs in relation to these investments are expensed when incurred.

---

114
Note 2
Summary of significant accounting policies (continued)
2.3.3 Investments (continued)
The following methods are adopted by the Fund in determining the fair value of investments:
 
\
Listed securities, exchange traded futures and options, and investments in listed managed investment schemes are 
recorded at the quoted market prices on relevant stock exchanges. 
 
\
Unlisted managed investment schemes and collective investment vehicles are re-measured by the Fund based on 
the estimated fair value of the net assets of each scheme or vehicle at the reporting date. Collective investment 
vehicles are entities that enable investors to pool their money and invest the pooled funds, rather than buying 
securities directly. Collective investment vehicles are used to invest in private equity funds, hedge funds, debt 
funds, listed equity funds, infrastructure funds and property funds and are usually structured as interests in limited 
partnerships and limited liability companies.
In determining the fair value of the net assets of unitised unlisted managed investment schemes and collective 
investment vehicles, reference is made to the underlying unit price provided by the Manager (where available), 
associated Manager or independent expert valuation reports and capital account statements and the most recent 
audited financial statements of each scheme or vehicle. 
Manager valuation reports are reviewed to ensure the underlying valuation principles are materially compliant with 
Australian Accounting Standards and applicable industry standards including International Private Equity and 
Venture Capital Valuation Guidelines as endorsed by the Australian Investment Council.
 
\
Derivative instruments are used by the Fund in accordance with the Act to manage its exposure to foreign exchange 
risk, interest rate risk, equity market risk and credit risk and to gain indirect exposure to market risks. The Fund uses 
forward foreign exchange contracts, swaps, futures, exchange traded and over the counter options and forward 
contracts on mortgage backed securities which are recorded at their fair value on the date the contract is entered 
into and are subsequently re-measured to their fair values at each reporting date. Further disclosure regarding the 
use of derivatives by the Fund is presented in Note 16.
 
\
Asset backed securities, bank bills, negotiable certificates of deposit and corporate debt securities which are traded 
in active markets are valued at the quoted market prices. Securities for which no active market is observable are 
valued at current market rates using broker sourced market quotations and/or independent pricing services as at the 
reporting date.
The fair value of financial assets and financial liabilities that are not traded in an active market are determined using 
valuation techniques. The Fund uses a variety of methods and makes assumptions that are based on market conditions 
existing at each reporting date. Valuation techniques used include the use of comparable recent arm’s-length 
transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option 
pricing models and other valuation techniques commonly used by market participants making the maximum use of 
observable market inputs and relying as little as possible on entity-specific inputs. Note 16.6 has further information 
surrounding the determination of fair values for investments.

---

115
Note 2
Summary of significant accounting policies (continued)
2.3.4 Future Fund Investment Companies
06
s F
Some of the investments of the Future Fund Board of Guardians are held through wholly owned investment holding 
ta in
companies, Future Fund Investment Companies (“FFICs”).
t a
e nci
m
e a
The FFICs are funded primarily via loan arrangements between the Future Fund Board of Guardians and each 
nts l 
respective FFIC. These loans are designated as financial assets and measured at fair value with changes in their fair 
value recognised in the statement of comprehensive income each reporting date. Interest receivable at the reporting 
date is included in the fair market value of the loans.
The outstanding balance of the loan assets is unsecured and is repayable in cash on the earlier of demand or within the 
f I
time period set out in the loan documents. Interest rates are set on the loans having regard to either the 5 or the 10-year 
u n
t v
u e
government bond rate in the market in which the underlying investment is made. 
r s
e g tin
e g f
As the FFICs hold a substantial portion of the investments of the Fund, disclosures in the financial instruments and 
ne o
financial risk management notes (Note 16) include the underlying investments of the FFICs on a look-through basis as 
r r t
ati h
this provides users of the financial statements with more relevant information in relation to the investment portfolio. The 
o e b
ns o
Note clearly states where this look-through has been applied. Additional disclosures regarding collective investment 
en
f A e
vehicles held in the FFICs have been included in Note 7.
fi
u t o
st f 
r
2.4 Revenue 
a  
lian
Dividends, franking credits and distribution income are recognised when the right to receive payment is established. 
s
Dividend income is recognised gross of foreign withholding tax with any related foreign withholding tax recorded as 
income tax expense. 
Imputation credits on investments in equity securities are recognised as income when the right to receive the refund of 
franking credits from the Australian Taxation Office (“ATO”) has been established.
2 A
0 n
1 n
8 u
Interest revenue is recognised in the statement of comprehensive income for all financial instruments that are not at 
-2 a
0 l R
fair value through profit or loss using the effective interest method as set out in AASB 9 Financial Instruments. Interest 
19 ep
income on assets at fair value through profit or loss is included in the net gains/(losses) on financial instruments at fair 
or
value through profit or loss in the statement of comprehensive income.
t  
2.5 Other income
Services and resources received free of charge
Services and resources received free of charge are recognised as revenue when, and only when, a fair value can be 
reliably determined and the services would have been purchased if they had not been donated. Use of those resources is 
recognised as an expense.
Other income
Other income is measured at the fair value of consideration received or receivable. 

---

116
Note 2
Summary of significant accounting policies (continued)
2.6 Transactions with the Government as owner
2.6.1 Credits to the Fund Account
From time to time the responsible Ministers may determine that additional amounts are to be credited to the Fund 
Account. In addition, the responsible Ministers may transfer Commonwealth-owned financial assets to the Fund 
Account. As shown in Note 11 there were no contributions received during the year. No contributions were received in 
the previous financial year.
2.6.2 Debits to the Fund Account
Amounts may be debited from the Fund Account in accordance with the purposes of the Fund Account as set out in 
the Act. Under the Act debits can be made to the extent of unfunded superannuation liabilities from whichever is the 
earlier of: 
(1) the time when the balance of the Fund is greater than or equal to the target asset level; or 
(2) 1 July 2020. In May 2017 the Government announced there would be no draw down from the Fund until at least 
2026-27. 
2.7 Employee entitlements 
Liabilities for services rendered by employees are recognised at the end of the financial year to the extent that they have 
not been settled. The amount is calculated with regard to the rates expected to be paid on settlement of the liability.
2.7.1 Leave
The liability for employee entitlements includes provisions for annual leave and long service leave. No provision has 
been made for sick leave as all sick leave is non-vesting.
The leave liabilities are calculated on the basis of employees’ remuneration at the end of the financial year, adjusted for 
expected increases in remuneration effective from 1 July 2019. Liabilities for short-term employee benefits (i.e. wages 
and salaries, annual leave, performance payments, expected to be settled within 12 months from the reporting date) are 
measured at their nominal amounts. 
All other employee benefits are measured at the present value of the estimated future cash flows to be made in respect 
of all employees at the end of the financial year. The Australian Government Actuary has recommended the application 
of the shorthand method, as prescribed by the FRRs, for determining the present value of the long service leave liability.
2.7.2 Superannuation
Staff of the Fund are variously eligible to contribute to the Commonwealth Superannuation Scheme (“CSS”), Public 
Sector Superannuation Scheme (“PSS”) or the Public Sector Superannuation Scheme (“Accumulation Plan”). Staff may 
join any other complying employee nominated schemes. 
For any staff who are members of CSS (Defined Benefit) or PSS (Defined Benefit), the Fund makes employer 
contributions to the Australian Government at rates determined by the Government actuary. The liability for 
superannuation benefits payable to an employee upon termination is recognised in the financial statements of the 
Australian Government.
As CSS and PSS are multi-employer plans within the meaning of AASB 119, all contributions are recognised as 
expenses on the same basis as contributions made to defined contribution plans. A liability has been recognised at the 
end of the financial year for outstanding superannuation co-contributions payable in relation to the final payroll run of 
the financial year. 

---

117
Note 2
Summary of significant accounting policies (continued)
2.7.3 Performance Related Payments
06
s F
All permanently employed staff at the Agency at the reporting date are eligible to receive an entitlement to a 
ta in
performance related payment as approved by the Board. Employees who receive an entitlement may elect to have the 
t a
e nci
m
entitlement converted to cash and paid to them. Alternatively, they may defer part or all of the payment for an initial 
e a
nts l 
two-year period and receive a commitment from the Agency to pay them a future amount which will be dependent on 
the performance of the Fund over this two-year period. 
A liability has been recognised at the end of the financial year for outstanding performance related payments payable in 
relation to previous and current financial years. For employees who have elected to receive part or all of the entitlement 
as cash, the cash component of the entitlement is recognised as a liability at its nominal value. For employees who 
f I
u n
have elected to defer part or all of their entitlement, the deferred portion of their entitlement is measured at the present 
t v
u e
r s
e g
value of the expected future entitlement at the conclusion of the initial two-year deferral period. For the purpose of this 
tin
e g f
calculation the Fund has assumed that the portfolio will return the minimum mandated return in making the estimate of 
ne o
the future value of the entitlement. This future value has then been discounted at an appropriate Australian Government 
r r t
ati h
bond rate to arrive at the present value of the liability. Actual returns are used to determine the present value of the 
o e b
ns o
entitlement for participation years where actual results are available.
en
f A efi
u t o
2.8 Leases 
st f 
ra  
The Fund enters into operating leases only. Operating lease payments are charged to the statement of comprehensive 
lian
income on a basis which is representative of the pattern of benefits derived from the leased assets.
s
2.9 Financial Risk Management
Disclosures regarding the Fund’s financial risks are presented in Note 16.
2 A
0 n
2.10 Taxation
1 n
8 u
-2 a
The Fund has sovereign immunity from taxation in Australia and foreign jurisdictions. In some limited cases and in some 
0 l R
19 e
limited countries, foreign taxes can be payable on certain classes of income and capital gains. Mostly these foreign 
po
taxes are withheld at source (income net of taxes is received by the Fund) under the withholding regimes of the relevant 
rt  
jurisdiction. These withholding taxes are generally a final tax and no further amounts are payable. To the extent the 
Fund is entitled to a lower withholding amount than that deducted at source, the Fund makes a claim to the respective 
foreign revenue authority for the difference and these amounts are recorded as receivables on the statement of financial 
position and in the statement of comprehensive income as revenue.
Current Tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable 
profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or substantively 
enacted by reporting date. As the fund is tax exempt in Australia, there is no current Australian tax amount recognised 
in the financial statements. 
The Fund does incur foreign withholding taxes and capital gains taxes in some jurisdictions which are recorded as 
current taxes.
While foreign corporate taxes are incurred on certain foreign investments of the Fund held via holding entities or within 
collective investment vehicles, the Fund applies the investment entity exemption and does not consolidate these 
investments. Those tax expenses are therefore not recorded in the financial statements. Corporate tax paid or payable 
on foreign investments results in a lower mark to market fair valuation of these investments and is included in the net 
gain or loss on financial instruments at fair value in the statement of comprehensive income.

---

118
Note 2
Summary of significant accounting policies (continued)
2.10 Taxation (continued)
Deferred Tax
Deferred tax is accounted for using the balance sheet liability method. Temporary differences are differences between 
the tax base of an asset or liability and its carrying amount in the statement of financial position. The tax base of an 
asset or liability is the amount attributed to that asset or liability for tax purposes.
Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised to 
the extent that it is probable that sufficient taxable amounts will be available against which deductible temporary 
differences or unused tax losses can be utilised. 
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when the 
asset and liability giving rise to them are realised or settled. Deferred tax assets and liabilities are offset when there is 
a legally enforceable right to set off current tax assets against current tax liabilities, when they relate to income taxes 
levied by the same taxation authority and the Fund intends to settle its current tax assets and liabilities on a net basis.
While foreign deferred corporate taxes are recognised on certain foreign investments of the Fund as per above, as the 
Fund applies the investment entity exemption and does not consolidate these investments, those deferred tax expenses 
are not recorded in the financial statements. Deferred taxes on foreign investments result in an adjusted mark to market 
fair valuation of these investments and are included in the net gain or loss on financial instruments at fair value in the 
statement of comprehensive income.
Fringe Benefits Tax and Goods and Services Tax
The Fund is exempt from all forms of federal Australian taxation except for Fringe Benefits Tax (“FBT”) and the Goods 
and Services Tax (“GST”). The FFICs, being wholly owned Australian corporate investment holding companies are 
taxpaying entities. The tax paid by the FFICs is recoverable via imputation credit refunds to which the Fund is entitled 
under the Act. 
Revenues, expenses, assets and liabilities are recognised net of GST, except:
 
\
where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
 
\
for receivables and payables (where GST is applicable).
Receipts and payments in the statement of cash flows are recorded in gross terms (that is, at their GST inclusive amounts).
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.
2.11 Foreign currency
Functional and presentation currency
Items included in the financial statements of the Fund are measured using the currency of the primary economic 
environment in which the Fund operates (the functional currency). The functional currency of the Fund is Australian 
dollars. It is also the presentation currency.
Transactions and balances
All foreign currency transactions during the period are brought to account using the exchange rate in effect at the date 
of the transaction. Foreign currency items at reporting date are translated at the exchange rate existing at reporting 
date. Exchange differences are recognised in the statement of comprehensive income in the period in which they arise. 
Translation differences on assets and liabilities at fair value are reported in the Statement of Comprehensive income on 
a net basis within net gains/(losses) on financial instruments at fair value through profit and loss.

---

119
Note 2
Summary of significant accounting policies (continued)
2.12 Rounding of amounts
06
s F
Amounts have been rounded to the nearest thousand dollars unless stated otherwise in accordance with the FRRs.
ta in
t a
e nci
m
e a
nts l 
Note 3
Dividends, distributions and net gains/(losses)
2019 
2018 
f I
u n
 $’000
 $’000
t v
u e
r s
e g t
Dividend income and imputation credits
in
e g f
n
Dividend income – domestic equities and listed managed 
e o
r r t
793,513
379,103
a
investment scheme distributions
ti h
o e b
ns o
Imputation credits refunded or refundable under Section 30 of the 
e
1,235,195
955,762
n
f A e
Future Fund Act 2006
fi
u t o
s
Dividend income – related entities (FFICs)1
2,092,632
1,859,693
t f 
ra  
li
Dividend income – international equities
1,956,689
817,513
ans
Total dividend and imputation credit income
6,078,029
4,012,071
Distribution income
Distributions – collective investment vehicles
 1,140,860 
683,172
Total distribution income
 1,140,860 
683,172
2 A
0 n
1 n
8 u
1.  There are no dividends receivable from FFIC related entities. 
-2 a
0 l R
19 epor
2019 
2018 
t  
 $’000
 $’000
Net gains/(losses) on financial instruments at fair value through 
profit or loss
Net gains on financial assets at fair value through profit or loss
10,262,556
9,632,252
Net gains / (losses) on financial liabilities at fair value through 
260,042
(495,174)
profit or loss
Total net gains on financial instruments at fair value through 
10,522,598
9,137,078
profit or loss 1
Net losses arising on foreign currency 2
(765,506)
(1,210,415)
1.  This total includes the foreign currency impact from translating financial assets and liabilities from their local currency amounts into 
Australian dollars. 
2.  Net foreign currency losses of $765,506,000 (2018: losses of $1,210,415,000) arise mainly as a result of the implementation of the Board’s 
foreign currency hedging policy. Offsetting gains/losses on investment values are included in the total net gain on financial instruments 
at fair value through profit and loss of $10,522,598,000 (2018: gains of $9,137,078,000). 

---

120
Note 4
Expenses
2019 
2018 
 $’000
 $’000
Agency employees’ remuneration
Wages and salaries
 49,408
46,987
Superannuation
 2,675
2,673
Leave and other entitlements payable
 827
1,062
Total Agency employees’ remuneration
52,910
50,722
Other expenses
Board remuneration
Wages and salaries
 801
784
Superannuation
 82
81
Total board remuneration
883
865
Depreciation & amortisation
Depreciation of plant and equipment
 1,826
1,391
Amortisation of intangibles – computer software
 1,328
1,277
Total depreciation & amortisation
3,154
2,668
Other operating expenses (including audit fees)
47,788
30,926
Total other expenses
51,825
34,459
Note 5
Remuneration of Auditors
Included in other operating expenses is the financial statement audit services provided to the Fund which totaled 
$156,000 (2018: $145,000) were provided by the Australian National Audit Office (“ANAO”) at no cost to the Fund. The 
fair value of all audit services provided by the ANAO, including the services provided free of charge and for the audits of 
the FFICs was:
2019 
2018 
 $
 $
Auditing the financial statements – Future Fund and FFICs
216,500
205,000
No other services were provided by the ANAO.
The Fund’s auditor is the ANAO who has contracted Ernst & Young (2018: Ernst & Young) to assist with the assignment. 

---

121
Note 6
Income tax expense
As per Note 2.10, the Fund is exempt from federal Australian income taxation. Tax expense reflects foreign withholding 
06
tax on income and other capital gains or corporate taxes where imposed by certain countries. Accordingly, the Australian 
s F
tax rate for the Fund is 0% (2018: 0%).
ta in
t a
e nci
m
e a
2019 
2018 
nts l 
 $’000
 $’000
Income tax expense
Current tax
65,180
53,391
Deferred tax
(176)
18,700
f I
u n
t v
u e
Adjustments for current tax of prior periods
-
-
r s
e g tin
65,004
72,091
e g f
ne o
Numerical reconciliation of income tax expense to prima facie tax payable
r r t
ati h
o e b
Profit before income tax
16,792,465
12,407,045
ns o en
Tax at the applicable Australian tax rate of 0% (2018: 0%)
-
-
f A efi
u t o
Tax effect of items which are not deductible/(taxable) in calculating 
st f 
r
taxable income:
a  
lian
Imputation credits earned from Australian subsidiaries
 897,711
1,286,343
s
Difference in tax rates on Australian subsidiaries
(897,711)
(1,286,343)
Withholding tax
 66,218
50,954
Other foreign corporate tax expense
(1,214)
21,137
2 A
0 n
Total income tax expense
65,004
72,091
1 n
8 u
-2 a
0 l R
19 ep
Note 7
ort 
Investments
 
2019 
2018 
 $’000
 $’000
Investment Summary
Financial assets at fair value:
Future Fund Investment Companies (FFICs)
60,233,281
55,105,566
Interest bearing securities
22,566,125
22,153,056
Listed equities and listed managed investment schemes
50,589,214
44,541,578
Collective investment vehicles
24,867,550
20,689,522
Derivatives
1,326,678
1,086,639
Restricted cash 
726,793
623,073
Total financial asset investments
160,309,641
144,199,434
Financial liabilities at fair value:
Derivatives
(563,459)
(1,560,417)
Total financial liability investments
(563,459)
(1,560,417)

---

122
Note 7
Investments (continued)
The tables below provide more detailed information of the investments held at balance date. 
The table below shows the FFICs balance split between loans and equity.
2019 
2018 
 $’000
 $’000
FFICs
At fair value:
Loans provided to FFICs1
46,941,046
42,954,427
Residual equity in FFICs2
13,292,235
12,151,139
Total FFICs3
60,233,281
55,105,566
1.  The FFIC loans would be classified as Level 2 in accordance with Note 16.7
2.  The residual equity in the FFICs would be classified as Level 3 in accordance with Note 16.7. Movement in residual equity for FFIC’s is due to 
changes in retained earnings and the current year surplus
3.  Refer to Note 2.3.4 for more information regarding the FFICs and loan arrangements.
The table below shows the reconciliation of loans provided to FFICs.
2019 
2018 
 $’000
 $’000
FFICs
Beginning of the year
42,954,427
39,865,117
Loans advanced
15,612,033
10,603,108
Loan repayments received
(15,594,996)
(7,685,305)
Interest charged1
1,075,470
1,000,496
Interest repayments received
(947,211)
(671,803)
Fair value gain/(loss)
3,841,323
(157,186)
End of year
46,941,046
42,954,427
1.  Interest on the FFIC loans is included in the net gain/(loss) on financial instruments at fair value through profit or loss – refer to Note 2.4 for 
further details

---

123
Note 7
Investments (continued)
2019 
2018 
06
 $’000
 $’000
s F
ta in
Interest bearing securities 
t a
e nci
m
At fair value:
e a
nts l 
Bank bills – international
4,619
19,797
Negotiable certificates of deposit - domestic
10,187,948
11,564,996
Corporate debt securities - international
1,017,906
927,652
Mortgage backed securities – domestic
-
6,216
f I
u n
t v
u e
Mortgage backed securities - international
322,838
461,827
r s
e g tin
Asset backed securities - international
678,956
596,314
e g f
ne o
r r t
Corporate credit (bank loans) – international
909,084
713,248
ati h
o e b
Government debt securities – domestic
 731,644 
-
ns o en
Government debt securities – international
 8,073,914 
7,425,579
f A efi
u t o
Other interest-bearing securities – international
639,216
437,427
st f 
ra  
l
Total interest bearing securities
22,566,125
22,153,056
ians
Listed equities and listed managed investment schemes 
At fair value:
Domestic listed equities and listed managed investment schemes 
11,012,903
9,524,619
International listed equities and listed managed investment 
2 A
39,576,311
35,016,959
0 n
schemes
1 n
8 u
-2 a
Total listed equities and listed managed investment schemes
50,589,214
44,541,578
0 l R
19 ep
Collective investment vehicles
ort  
At fair value:
Unlisted investments 
 22,868,026 
18,736,786
Unlisted shares
 1,999,524 
1,952,736
Total collective investment vehicles
24,867,550
20,689,522

---

124
Note 7
Investments (continued)
2019 
2018 
 $’000
 $’000
Derivatives
At fair value: - financial assets
Currency contracts
640,948
407,631
Interest rate swap agreements 
50,492
23,876
Interest rate futures
277,113
148,720
Equity options and warrants
135,474
430,998
Equity futures
76,900
13,102
Credit default swaps
14,179
8,624
Currency swaps
102,496
2,820
Currency options
28,875
50,868
Forward contracts on mortgage backed securities
201
-
Total derivative financial assets
1,326,678
1,086,639
2019 
2018 
 $’000
 $’000
Derivatives
At fair value: - financial liabilities
Currency contracts
(468,530)
(1,329,785)
Interest rate swap agreements 
(18,822)
(55,212)
Interest rate futures
(3,058)
(670)
Equity futures
(221)
(11,379)
Credit default swaps
(28,862)
(35,045)
Currency swaps
(43,966)
(128,316)
Currency options
-
(10)
Total derivative financial liabilities
(563,459)
(1,560,417)
Total derivatives
763,219
(473,778)
The Fund enters into certain derivative transactions under International Swaps and Derivatives Association (ISDA) 
agreements with various counterparties, which include provisions for netting arrangements. The derivative financial 
asset and financial liability balances above are stated gross of any netting arrangements. 
The gross and net positions of financial assets and liabilities that have been offset in the balance sheet are disclosed in 
the first three columns of the following table. Under the terms of the ISDA agreements, only where certain credit events 
occur (such as default), the net position owing/receivable to a single counterparty in the same currency will be taken 
as owing and all the relevant arrangements terminated. The fourth column in the tables below show the amounts which 
could be offset at the counterparty level. As the Fund does not presently have a legally enforceable right of set-off, 
these amounts have not been offset in the balance sheet.

---

125
Note 7
Investments (continued)
Financial assets
Effects of offsetting on the balance sheet
Related amounts not offset
06
Net amount of 
s F
ta in
Gross amounts 
financial assets 
Amounts subject 
t a
e nci
Gross amounts of 
set off in the 
presented in the 
to master netting 
m
e a
financial assets 
balance sheet 
balance sheet 
arrangements 
Net amount 
nts l 
$’000
$’000
$’000
$’000
$’000
2019
Derivative 
financial 
950,645
-
950,645
 (554,256)
 396,389 
f I
instruments
u n
t v
u e
r s
Total
950,645
-
950,645
 (554,256)
 396,389 
e g tin
e g f
2018
ne o
r r t
a
Derivative 
ti h
o e b
financial 
917,311
-
917,311
(917,311)
-
ns o e
instruments
n
f A efi
u t o
Total
917,311
-
917,311
(917,311)
-
st f 
ra  
lian
Financial assets
Effects of offsetting on the balance sheet
Related amounts not offset
s
Net amount of 
Gross amounts 
financial liabilities 
Amounts subject 
Gross amounts of 
set off in the 
presented in the 
to master netting 
financial liabilities 
balance sheet 
balance sheet 
arrangements 
Net amount 
$’000
$’000
$’000
$’000
$’000
2 A
0 n
1 n
8
2019
u
-2 a
0 l R
Derivative 
19 ep
financial 
 554,256
 - 
 554,256
 (554,256)
 - 
ort 
instruments
 
Total
 554,256
 - 
 554,256
 (554,256)
 - 
2018
Derivative 
financial 
1,509,311
-
1,509,311
(917,311)
592,000
instruments
Total
1,509,311
-
1,509,311
(917,311)
592,000

---

126
Note 7
Investments (continued)
7.1 Restrictions on investments – cash 
Cash provided and received as collateral 
The Fund has entered into various derivative contracts which require the Fund to post or receive collateral with 
counterparties under certain circumstances based on minimum transfer limits. The Fund provides cash as collateral 
when legally required and counterparties also post collateral when legally required. Any cash provided as collateral 
remains a financial asset of the Fund, however, any alternate use of this cash is restricted as it is held by the 
counterparty. Any cash received by the Fund from counterparties is not included in the net assets of the Fund. As at 30 
June 2019, the Fund has $0 in cash which has been posted as collateral with counterparties, (2018: $298,003,382) and 
has received $425,687,588 in cash (2018: $215,233,235). 
Cash provided as margin on futures accounts
The Fund has posted cash with a futures broker to cover exchange traded futures positions as required under clearing 
house rules. As at 30 June 2019, the Fund had posted $577,589,714 (2018: $257,360,079) in futures margins to cover open 
positions. This cash also remains a financial asset of the Fund, however, any alternate use of this cash is also restricted.
Cash provided as margin on swap accounts
The Fund has posted cash with a central counterparty to cover exchange traded swap positions as required under 
clearing house rules. As at 30 June 2019, the Fund had posted $24,202,559 (2018: $49,440,235) in swap margins to 
cover open positions. This cash also remains a financial asset of the Fund, however any alternate use of this cash is 
also restricted.
Cash prepayments for investments
The Fund prepays cash for applications into some Alternative investments in advance of the effective date for 
allocation of units as set out in the legal documents. Therefore, the cash remains a financial asset of the Fund, however, 
any alternate use of this cash is restricted. As at 30 June 2019, the Fund prepaid $125,000,000 (2018: $18,270,000).
7.2 Restrictions on investments – listed equities
The Fund has in place an automatic contractual lien over the Fund’s listed equities with a counterparty when the Fund’s 
exposure to that counterparty exceeds the base unsecured threshold. At 30 June 2019 no assets are subject to the lien 
(2018: no assets subject to the lien).
This agreement is instead of posting cash collateral and provides the Fund with greater efficiency in managing its liquidity. 
7.3 Collective investment vehicles 
Commitments made to collective investment vehicles as at 30 June 2019
As disclosed in the schedule of commitments and in the following tables, the Fund, directly and via the FFICs has 
committed to provide capital to various collective investment vehicles. The total of these commitments at balance date 
is $20,494 million (2018: $19,418 million). The Fund’s commitment obligations, being capital calls, are set out in the 
various underlying subscription documents. While the actual timing of the capital calls to be made by the managers of 
these vehicles is uncertain, as it is dependent on the managers sourcing suitable investment opportunities, the Fund has 
recorded the commitments as being current in accordance with the underlying legal documents (see the schedule of 
commitments). The Fund has appropriate liquidity planning in place to ensure a suitable allocation of resources will be 
available to cover these future commitments of capital. 

---

127
Note 7
Investments (continued)
7.3 Collective investment vehicles (continued) 
06
s F
Investment funds of the types the Fund invests in usually allow the fund’s manager, general partner or other controlling 
ta in
entity to require repayment of distribution payments previously made to investors in order to cover certain fund liabilities 
t a
e nci
m
(such as obligations to indemnify or to meet warranty claims on sold assets). In line with standard market practice, 
e a
nts l 
the Fund requires these ‘giveback’ obligations to be limited in both total amount (e.g. to between 10-25% of total 
distributions received) and liability period (e.g. for no longer than two years after the distributions are received). The 
Fund is not aware of any giveback obligations at 30 June 2019 (or 30 June 2018).
30 June 2019 – directly held by the Fund
f I
As at 30 June 2019, the Fund had made commitments to a number of collective investment vehicles. Capital 
u n
t v
u e
commitments (local currency), the net cost of the current investments net of returns of capital (Australian dollars), the 
r s
e g tin
outstanding commitment (Australian dollars) and the fair value (Australian dollars) of the investments as at 30 June 
e g f
n
2019 are shown in the table below. 
e o
r r t
ati h
o e b
n
Contractual capital 
Outstanding 
Net capital 
s o en
committed as at 
commitment as at 
cost as at 
Fair value as at 
f A efi
u t o
30 June 2019 
30 June 2019 
30 June 2019 
30 June 2019 
st f 
r
Description of 
Local Currency 
AUD equivalent 
AUD equivalent 
AUD equivalent 
a  
lia
underlying strategy
 ’000
$’000
$’000
 $’000
ns
Alternative strategies
AUD $8,870,307
-
8,311,643
8,489,600
Debt
AUD $2,201,714
204,201
1,771,772
1,767,859
Debt
EUR €1,116,376
830,062
711,574
1,036,127
2 A
Debt
USD $2,372,947 
1,136,206
1,697,662
2,079,488
0 n
1 n
8 u
Global Infrastructure
AUD $837,918 
-
837,918
1,979,134
-2 a
0 l R
1
Global Infrastructure
USD $2,090,648
1,559,491
931,291
1,180,690
9 epor
Listed Equities
AUD $643,147
-
626,256
608,699
t  
Listed Equities
USD $601,103
-
798,525
937,762
Private Equity
EUR €169,984
-
205,857
182,335
Private Equity
USD $287,281
62,249
287,600
571,465
Property
AUD $551,935
-
76,615
109,056
Property
EUR €87,124
16,577
93,765
116,938
Property
GBP £453,832
443,662
234,819
386,684
Property
USD $5,239,870
2,021,351
4,006,313
5,138,081
Timberlands
USD $167,561
-
221,205
283,632
Total 
6,273,799
20,812,815
24,867,550

---

128
Note 7
Investments (continued)
7.3 Collective investment vehicles (continued) 
30 June 2019 – indirectly held via the FFICs
As at 30 June 2019, the Fund had made commitments to a number of collective investment vehicles via its FFICs. 
Capital commitments (local currency), the net cost of the current investments net of returns of capital (Australian 
dollars), the outstanding commitment (Australian dollars) and the fair value (Australian dollars) of the investments as 
at 30 June 2019 are shown in the table below. 
Contractual capital 
Outstanding 
Net capital 
committed as at 
commitment as at 
cost as at 
Fair value as at 
30 June 2019 
30 June 2019 
30 June 2019 
30 June 2019 
Description of 
Local Currency 
AUD equivalent 
AUD equivalent 
AUD equivalent 
underlying strategy
 ’000
$’000
$’000
 $’000
Alternative Strategies
AUD $9,830,000 
589,526
8,240,512
8,684,895
Alternative Strategies 
USD $6,319,197 
105,565
3,755,691
4,784,700
Debt
EUR €1,009,368 
811,887
12,337
114,968
Debt
USD $9,757,927 
1,440,815
2,492,103
4,093,608
Global Infrastructure
AUD $2,765,477 
196,498
2,255,741
2,513,379
Global Infrastructure
GBP £262,029
-
168,789
895,208
Global Infrastructure
USD $882,333 
153,677
625,050
882,775
Listed Equities
USD $2,623,370 
-
750,257
2,279,506
Private Equity 
 AUD $875,747
222,961
435,207
414,554
Private Equity
EUR €1,648,438 
1,263,773
831,227
1,328,322
Private Equity
GBP £303,604 
13,959
494,706
516,240
Private Equity
USD $19,975,395 
8,270,611
13,613,700
21,889,415
Property 
AUD $287,150
-
293,452
450,767
Property
EUR €955,791 
587,174
604,424
668,274
Property
USD $809,656 
563,417
277,032
375,500
Timberlands
AUD $511,827 
-
258,148
563,716
Total 
14,219,863
35,108,376
50,455,827

---

129
Note 7
Investments (continued)
7.3 Collective investment vehicles (continued) 
06
s F
30 June 2018 – directly held by the Fund
ta in
t a
e nci
As at 30 June 2018, the Fund had made commitments to a number of collective investment vehicles. Capital 
m
e a
commitments (local currency), the net cost of the current investments net of returns of capital (Australian dollars), the 
nts l 
outstanding commitment (Australian dollars) and the fair value (Australian dollars) of the investments as at 30 June 
2018 are shown in the table below.
Contractual capital 
Outstanding 
Net capital 
committed as at 
commitment as at 
cost as at 
Fair value as at 
f I
u n
t v
u
30 June 2018 
30 June 2018 
30 June 2018 
30 June 2018 
e
r s
e g t
Description of 
Local Currency 
AUD equivalent 
AUD equivalent 
AUD equivalent 
in
e g f
n
underlying strategy
 ’000
$’000
$’000
 $’000
e o
r r t
a
Alternative strategies
AUD $7,864,104
-
7,846,616
7,870,094
ti h
o e b
ns o
Debt
AUD $1,701,714
 342,679 
1,229,699
 1,172,326 
en
f A e
Debt
EUR €967,721
 71,900 
692,122
 981,173 
fi
u t o
st f 
Debt
USD $2,317,818
1,219,995
1,460,095
 1,645,877 
ra  
lia
Global Infrastructure
AUD $837,918
-
837,918
 1,854,461 
ns
Global Infrastructure
USD $1,323,302
645,184
820,596
 1,080,138 
Listed Equities
AUD $500,000
-
500,000
 504,100 
Listed Equities
USD $451,270
-
 577,735 
 653,995 
2 A
Private Equity
EUR €169,984
16,424
 252,447 
 348,933 
0 n
1 n
8 u
Private Equity
USD $350,007
22,718
 368,847 
 458,425 
-2 a
0 l R
1
Property
AUD $751,935
200,000
 94,698 
 151,559 
9 epor
Property
EUR €87,124
26,867
 87,404 
 109,443 
t  
Property
GBP £362,914
343,521
 191,102 
 378,524 
Property
USD $5,770,501
3,730,416
 2,256,145 
 3,211,100 
Timberlands
USD $167,561
-
 222,175 
 269,374 
Total 
6,619,704
17,437,599
20,689,522

---

130
Note 7
Investments (continued)
7.3 Collective investment vehicles (continued) 
30 June 2018 – indirectly held via the FFICs
As at 30 June 2018, the Fund had made commitments to a number of collective investment vehicles via its FFICs. 
Capital commitments (local currency), the net cost of the current investments net of returns of capital (Australian 
dollars), the outstanding commitment (Australian dollars) and the fair value (Australian dollars) of the investments as 
at 30 June 2018 are shown in the table below. 
Contractual capital 
Outstanding 
Net capital 
committed as at 
commitment as at 
cost as at 
Fair value as at 
30 June 2018 
30 June 2018 
30 June 2018 
30 June 2018 
Description of 
Local Currency 
AUD equivalent 
AUD equivalent 
AUD equivalent 
underlying strategy
 ’000
$’000
$’000
 $’000
Alternative Strategies
AUD $7,395,807
158,544
6,796,961
7,042,008
Alternative Strategies 
JPY ¥55,626,296
-
78,270
94,672
Alternative Strategies 
USD $9,816,648
536,184
5,585,376
7,391,781
Debt
AUD $925,000
-
925,000
987,905
Debt
EUR €1,022,760
763,644
41,189
212,888
Debt
USD $6,229,204
688,668
1,528,392
2,639,845
Global Infrastructure
AUD $2,765,200
316,022
2,086,001
2,365,206
Global Infrastructure
GBP £262,029
-
252,731
1,549,763
Global Infrastructure
USD $996,351
112,152
1,011,949
1,112,461
Listed Equities
USD $2,548,370
-
822,042
2,174,302
Private Equity 
 AUD $882,178
272,417
436,640
414,396
Private Equity
EUR €1,198,438
549,325
872,923
1,378,745
Private Equity
GBP £175,000
13,754
285,776
386,820
Private Equity
USD $17,493,296
7,477,054
11,229,216
17,257,553
Property 
AUD $755,075
260,605
500,773
756,035
Property
EUR €1,006,391
676,686
728,768
747,337
Property
USD $933,403
739,069
248,942
289,940
Timberlands
AUD $557,704
234,322
86,068
392,463
Total 
12,798,446
33,517,017
47,194,120

---

131
Note 8
Receivables
2019  
2018  
06
$’000
$’000
s F
ta in
Receivables
t a
e nci
m
Imputation credits refundable 
1,260,150
1,466,334
e a
nts l 
Interest receivable
3,026
2,204
Dividends & distributions receivable
177,987
166,434
Unsettled sales
74,104
80,816
Total Receivables
1,515,267
1,715,788
f I
u n
t v
u e
No amounts presented in the table above are considered to be past due or impaired.
r s
e g tin
e g f
ne o
r r t
ati h
o e b
Note 9
ns o en
Payables
f A efi
u t o
st f 
r
2019  
2018  
a  
lia
$’000
$’000
ns
Payables
Unsettled purchases1
461,665
932,824
Other accrued expenses including management and performance 
67,687
55,248
fees payable
2 A
0 n
1
Total Payables
n
529,352
988,072
8 u
-2 a
0 l R
1.   Represents amounts owing under normal market settlement terms for the purchase of investment securities. 
19 eport  
Note 10
Provisions
2019  
2018  
$’000
$’000
Employee provisions
Annual leave
2,187
2,174
Long service leave
5,361
5,033
Other employee liabilities
22,188
21,753
Total Employee provisions
29,736
28,960

---

132
Note 11
Contributions by Government
2019  
2018  
$’000
$’000
Opening balance
60,536,831
60,536,831
Contribution from Government - cash
-
-
Closing balance
60,536,831
60,536,831
Contributions are made under Schedule 1 of the Act. 
Note 12 
Unconsolidated subsidiaries and interests in unconsolidated 
structured entities
As an investment entity, the Fund does not consolidate any of the subsidiaries listed below. 
The Fund also invests via non-controlled structured entities. As these are investments of the Fund they are at their fair 
value and any undrawn capital is shown as an outstanding commitment which equates to the Fund’s maximum exposure 
to loss from its investment in these entities.
All entities (controlled or non-controlled) have some or all of the following characteristics:
 
\
the requirement for the Fund (or a FFIC entity) to fund future commitments to the entity as called by the investment 
manager or general partner. These amounts are limited in terms of total value and callable only in accordance with the 
underlying legal arrangements. These amounts are disclosed in Note 7.3;
 
\
the lack of control over the payment of dividends, distributions or the return of capital from the entity. These are 
controlled by the general partner or the investment manager in accordance with the legal arrangements entered into 
upon initial investment;
 
\
limitations on transfer or redemption of the interest in the entity. The Fund ensures that these are normal 
commercial arrangements for investments of this type, typically existing to protect and treat all investors in an 
equitable manner; and 
 
\
limited recourse to the Fund (ordinarily capped at the commitment or invested capital value) for any claims or 
liabilities incurred by these entities.

---

133
Note 12 
Unconsolidated subsidiaries and interests in unconsolidated 
structured entities (continued)
06
s F
Name of entity
Country of 
Equity holding
ta in
incorporation/ 
t a
e
30 June 2019 
30 June 2018 
nci
m
domicile
e
%
%
a
nts l 
Future Fund Investment Company No.1 Pty Ltd^1
Australia
100
100
Future Fund Investment Company No.2 Pty Ltd^1
Australia
100
100
Global Hedged Strategies Fund Ltd2
Cayman Islands
100
100
Future Fund Investment Company No.3 Pty Ltd^1
Australia
100
100
f I
u n
t v
u e
GWII Unit Trust 22
Australia
100
100
r s
e g tin
e g f
Co-Investment Fund (Parallel) LP2
United States
100
100
ne o
r r t
Future Fund Investment Company No.4 Pty Ltd^1
Australia
100
100
ati h
o e b
n
Future Fund Investment Company No.5 Pty Ltd^1
Australia
100
100
s o en
f A
Blue Jay Fund Ltd2
Bermuda
100
100
efi
u t o
s
Elementum Tranquillus Fund Ltd2
Bermuda
100
100
t f 
ra  
l
Clocktower FF LP2
Cayman Islands
100
100
ians
Future Fund Investment Company No.6 Pty Ltd (Dormant)1
Australia
100
100
FFH No.3 Trust1
Australia
100
100
Queenscliff Trust1
Australia
100
100
Bain Capital Distressed and Special Situations 2016 (F) LP1
United States
100
100
2 A
0 n
1 n
8
Bain Capital Distressed and Special Situations 2016 (F-EU), 
u
-
England
100
100
2 a
LP (formerly Sankaty Credit Opportunities (F) Europe LP )1
0 l R
19 ep
Heathcote Fund Ltd1
Cayman Islands
100
100
ort  
^ Audited by the Australian National Audit Office.
1.  Held directly by the Future Fund
2.  Held indirectly by a Future Fund subsidiary

---

134
Note 13
Cash flow reconciliation 
2019 
2018 
$’000
$’000
Reconciliation of operating result to net cash
from operating activities:
Operating result
16,727,461
12,334,954
Depreciation and amortisation
3,154
2,668
Purchase of investments
(128,016,348)
(134,172,418)
Proceeds from sale of investments
122,555,198
130,781,920
Net gain on revaluation of investments 
(11,021,173)
(9,390,033)
Unrealised (gain)/loss on foreign currency
(1,051,164)
966,216
Decrease in accrued income
193,809
79,703
Increase in other assets
(1,180)
(1,367)
Increase in employee provisions
776
4,072
Increase/(Decrease) in other payables
12,439
(34,569)
(Decrease)/increase in deferred tax liability
(176)
18,700
Net cash (used in)/provided by operating activities
(597,204)
589,846
Reconciliation of cash and cash equivalents
For the purposes of the cash flow statement, cash includes cash on hand and in banks net of any outstanding operating 
overdrafts. Cash at the end of the financial year is reconciled to the statement of financial position as follows:
2019 
2018 
$’000
$’000
Cash and cash equivalents
1,781,107
2,418,038
Note 14
Contingent liabilities and assets
The Fund is not aware of any quantifiable or unquantifiable contingency as of the signing date that requires disclosure in 
the financial statements.

---

135
Note 15
Related party transactions
15.1 Parent entity
06
s F
The ultimate controlling entity of the Fund is the Commonwealth of Australia.
ta in
t a
e nci
m
15.2 Subsidiaries
e a
nts l 
Interests in subsidiaries are set out in Note 12.
15.3 Key management personnel
Key management personnel are defined as the Board, members of the Agency’s Management Committee which includes 
the Chief Executive Officer, Chief Investment Officer, Chief Operating Officer, Chief Financial Officer, Chief Culture 
f I
u n
t v
u e
Officer, General Counsel & Chief Risk Officer and Chief Technology Officer and the Finance Minister and the Treasurer. 
r s
e g ti
These persons are the only persons considered to have the capacity and responsibility for decision making that can have 
n
e g f
n
a material impact on the strategic direction and financial performance of the Fund. 
e o
r r t
at
Remuneration of the Finance Minister, Treasurer and Board members is independently determined by the Australian 
i h
o e b
n
Government Remuneration Tribunal. No member of the Board nor the statutory Accountable Authority receive any 
s o en
entitlement to performance related payments in undertaking their roles. The remuneration of the Finance Minister and 
f A efi
u t o
Treasurer is not paid by the Fund and is therefore excluded from the compensation disclosed in Note 15.4.
st f 
ra  
lia
15.4 Key management personnel compensation
ns
2019 
2018 
$’000
$’000
Short-term employee benefits
6,667,334
6,683,719
2 A
0
Post-employment benefits
276,540
276,513
n
1 n
8 u
-
Other long-term benefits
332,869
295,589
2 a
0 l R
19 e
Termination benefits
-
461,595
port 
Total Compensation
7,276,743
7,717,416
 
The total number of key management personnel that are included in the above table are 14 (2018: 14).
15.5 Transactions with related parties 
2019 
2018 
$’000
$’000
Subscriptions for capital and expenses1
Subsidiaries
433,063
855,220
Dividend and distribution revenue1
Subsidiaries
240,713
225,042
1.  FFBG subsidiaries excluding FFIC entities. FFIC transactions reflected in FFIC loans (Note 7) and FFIC dividend income (Note 3). 

---

136
Note 15
Related party transactions (continued)
15.6 Terms and conditions
Transactions relating to dividends, distributions and funding of capital and expenses with related parties were made in 
accordance with the individual legal agreements. 
15.7 Transactions with government-related entities
Transactions with other Australian government-controlled entities for normal day-to-day business operations were 
provided under normal terms and conditions. This includes the payment of workers compensation and insurance premiums 
and superannuation. They are not considered significant individually to warrant separate disclosure as related party 
transactions. See Note 3 for details regarding the imputation credits refundable from the Australian Taxation Office.
Note 16
Financial instruments and financial risk management
16.1 Risk management framework
The Board is collectively responsible for the investment decisions of the Fund and is accountable to the Government 
for the performance of the Fund. The Board’s primary role is to set the strategic direction of the investment activities of 
the Fund consistent with its approved Investment Mandate. This is accomplished through setting the return targets, risk 
appetite and risk tolerance levels to manage investment risk. The Agency has the task and responsibility of providing 
considered research and accurate information and reporting to the Board to assist it in undertaking this role. The Agency 
monitors compliance daily. Reporting to the Board includes compliance with the Board approved investment guidelines 
and with the Board approved strategic asset allocation.
16.2 Financial risk management objectives
The Investment Mandate set by the Government specifies a benchmark return for the Fund and requires that it take 
an acceptable but not excessive level of risk. The Board sets and reviews an asset allocation designed to achieve this 
outcome. It encapsulates a level of risk that is expected to deliver the key return objectives while limiting the downside 
risk. Particular attention is paid to the worst 5% of possible outcomes under portfolio modelling over a three-year 
period (the ‘Conditional Value at Risk’ or “CVaR” of the Fund) to ensure that medium-term risk in the portfolio is deemed 
acceptable while pursuing long-term returns. 
The portfolio construction process involves considering a range of factors and ensuring that there is adequate diversity 
so that a negative outcome in any one area does not unduly impact the overall Fund return. The factors considered 
include the outlook for: global economic growth; inflation; global real interest rates; changes in risk premia attached to 
various asset classes; movements in the value of currencies held; and changes in liquidity and credit conditions. 

---

137
Note 16
Financial instruments and financial risk management (continued)
16.3 Market risk
06
s F
Market risk is the risk of loss arising from movements in the prices of various assets flowing from changes in interest 
ta in
rates, exchange rates, equity prices and other prices and derivatives contracts tied to these asset prices.
t a
e nci
m
e a
nts l
16.3.1 Interest rate risk
 
Interest rate exposure tables
The exposure to interest rates as at 30 June 2019 of the Fund and the FFICs are set out below. 
f I
u n
Floating Interest 
Fixed Interest 
Non–interest 
Total1 
t v
u e
Rate 2019 
Rate 2019 
Bearing 2019 
2019  
r s
e g tin
Financial asset 
 $’000
$’000
$’000
 $’000
e g f
ne o
Cash and cash equivalents
2,687,312
-
-
2,687,312
r r t
ati h
o e b
Bank bills
-
4,619
-
4,619
ns o en
Negotiable certificates of deposit
-
10,187,948
-
10,187,948
f A efi
u t o
Corporate debt securities
179,056
1,416,926
-
1,595,982
st f 
ra  
Mortgage backed securities
304,170
18,668
-
322,838
lians
Asset backed securities
647,485
31,471
-
678,956
Corporate credit (bank loans)
1,153,630
-
-
1,153,630
Government debt securities
38,208
9,504,528
-
9,542,736
Other interest-bearing securities
662,451
583,622
-
1,246,073
2 A
0 n
1 n
Other financial assets
-
-
136,250,568
136,250,568
8 u
-2 a
0 l R
Total financial assets
5,672,312
21,747,782
136,250,568
163,670,662
19 ep
Notional value of derivative 
ort 
positions
 
Interest rate swaps (notional 
(3,192,569)
(1,731,890)
amount) – pay 
Interest rate swaps (notional 
1,731,890
3,192,569
amount) – receive
Currency swaps (notional amount) 
(9,753,225)
-
– pay
Currency swaps (notional amount) 
9,686,858
-
– receive 
As at the reporting date the Fund’s debt portfolio had an effective interest rate duration of 0.90 (2018: 1.16). 
1.  Total balances will not agree with the investment balances reported in Note 7 as this disclosure includes additional interest rate securities and 
cash and cash equivalents held by the FFICs.

---

138
Note 16
Financial instruments and financial risk management (continued)
16.3.1 Interest rate risk (continued)
The exposure to interest rates as at 30 June 2018 of the Fund and the FFICs are set out below. 
Floating Interest 
Fixed Interest 
Non–interest 
Total1 
Rate 2018 
Rate 2018 
Bearing 2018 
2018  
Financial asset 
 $’000
$’000
$’000
 $’000
Cash and cash equivalents
3,485,427
-
-
3,485,427
Bank bills
-
19,797
-
19,797
Negotiable certificates of deposit
-
11,564,996
-
11,564,996
Corporate debt securities
92,551
1,401,096
-
1,493,647
Mortgage backed securities
447,788
20,255
-
468,043
Asset backed securities
571,517
24,797
-
596,314
Corporate credit (bank loans)
846,788
-
-
846,788
Government debt securities
38,694
8,526,333
150
8,565,177
Other interest-bearing securities
400,358
590,958
1,634
992,950
Other financial assets
-
-
120,994,207
120,994,207
Total financial assets
5,883,123
22,148,232
120,995,991
149,027,346
Notional value of derivative 
positions
Interest rate swaps (notional 
(3,528,835)
(759,506)
amount) – pay 
Interest rate swaps (notional 
759,506
3,528,835
amount) – receive
Currency swaps (notional amount) 
(6,143,664)
-
– pay
Currency swaps (notional amount) 
5,940,356
-
– receive 
1.  Total balances will not agree with the investment balances reported in Note 7 as this disclosure includes additional interest rate securities and 
cash and cash equivalents held by the FFICs.

---

139
Note 16
Financial instruments and financial risk management (continued)
16.3.1 Interest rate risk (continued)
06
s F
Interest rate derivative contracts
ta in
t a
e nci
The Fund had open positions in exchange traded interest rate futures contracts, interest rate swap agreements and 
m
e a
interest rate option agreements as at 30 June 2019. The Act governs the use of financial derivatives as detailed in 
nts l 
Note 2.3.3. 
Interest rate derivatives are used by the Fund’s investment managers to manage the exposure to interest rates and to 
ensure it remains within approved limits. 
The Fund transacts in interest rate derivatives in the following forms:
f I
u n
t v
u e
 
\
bi-lateral over-the-counter contracts;
r s
e g tin
e g f
 
\
centrally cleared over-the-counter contracts; and
ne o
r r t
a
 
\
exchange traded derivatives. 
ti h
o e b
ns o e
The Fund’s bi-lateral counterparties for interest rate swaps and options include major banking firms and their affiliates. 
n
f A e
The Fund diversifies its exposure by utilising multiple counterparties, by considering each counterparty’s credit rating, 
fi
u t o
and by executing such contracts pursuant to master netting agreements. All bi-lateral swap and option transactions 
st f 
ra  
which are not subject to mandatory central clearing are undertaken using ISDAs. Centrally cleared transactions are 
lian
cash margined at least daily. The Fund’s interest rate futures contracts are cash margined daily with the relevant 
s
futures clearing exchange. The notional value of the open positions, impact on fixed interest exposure and their fair 
value are set out below:
Notional 
Fair Market 
Notional 
Fair Market 
2 A
Value 2019 
Value 2019 
Value 2018 
Value 2018 
0 n
1 n
8 u
 $’000
$’000
$’000
 $’000
-2 a
0 l R
1
Buy domestic interest rate futures 
9 e
4,771,222
24,098
 8,842,183 
 65,473 
p
contracts
ort  
Buy international interest rate 
13,765,701
253,015
 13,319,327 
 82,693 
futures contracts
Sell domestic interest rate futures 
(4,521,736)
(1,580)
(4,269,943) 
 546 
contracts
Sell international interest rate 
(140,815)
(1,478)
(156,965) 
(662) 
futures contracts
Receiver (fixed) interest rate swap 
3,192,569
43,957
 3,528,835 
(38,319) 
agreements
Payer (fixed) interest rate swap 
1,731,890
(12,287)
 (759,506) 
 6,983 
agreements
Total 
305,725
116,714
No interest rate derivatives are held by the FFICs.

---

140
Note 16
Financial instruments and financial risk management (continued)
16.3.1 Interest rate risk (continued)
Interest rate sensitivity analysis 
The following table demonstrates the impact on the operating result of the Fund and the FFICs for a 20-basis point 
(2018: 20 basis point) change in bond yields with all other variables held constant. It is assumed that the basis point 
change occurs as at the reporting date (30 June 2019 and 30 June 2018) and there are concurrent movements in 
interest rates and parallel shifts in the yield curves. A 20-basis point (2018: 20 basis point) movement would result 
in the following impact on the debt portfolios (including interest rate derivatives) contribution to the Fund and FFICs’ 
operating result. The impact on the operating result includes the increase/(decrease) in interest income on floating rate 
securities from the basis point change.
30 June 2019 
Impact on operating result 
 $’000
+ 20 basis points
(371,306)
- 20 basis points
379,140
30 June 2018 
Impact on operating result 
 $’000
+ 20 basis points
(432,205)
- 20 basis points
398,034
16.3.2 Foreign currency risk management 
The Fund and the FFICs undertake certain transactions denominated in foreign currencies and accordingly are exposed 
to the effects of exchange rate fluctuations. The Board sets a target exposure to foreign currency risk and this is 
managed utilising forward foreign exchange contracts and other derivatives.
Foreign exchange contracts are used by the Fund’s investment managers to manage the exposure to foreign exchange 
and to ensure it remains within Board approved limits. The Act governs the use of financial derivatives as detailed in 
Note 2.3.3. The Fund’s counterparties for foreign exchange contracts include major banking firms and their affiliates. 
The Fund diversifies its exposure by utilising major banking firms, by considering each counterparty’s credit rating, 
and by executing such contracts pursuant to master netting agreements. All transactions (other than spot trades) are 
undertaken using ISDAs.

---

141
Note 16
Financial instruments and financial risk management (continued)
16.3.2 Foreign currency risk management (continued)
06
s F
The Fund and FFICs’ exposure in Australian equivalents to foreign currency risk at the reporting date was as follows:
ta in
t a
e nci
m
USD  
EUR  
GBP 
JPY 
Other1  
Total 
e a
nts l 
30 June 2019
AUD $’000
AUD $’000
AUD $’000
AUD $’000
AUD $’000
AUD $’000
Cash & cash 
1,517,010
158,917
331,830
158,833
244,355
2,410,945
equivalents
Listed equities and 
f I
listed managed 
20,334,421
3,180,889
1,684,541
4,347,801
16,189,180
45,736,832
u n
t v
u e
investment schemes 
r s
e g tin
Interest bearing 
e g f
n
4,640,850
276,691
197,592
8,010,562
59,453
13,185,148
e o
securities
r r t
ati h
o
Collective 
e b
n
44,496,621
3,446,964
1,798,131
-
-
49,741,716
s o
investment vehicles
en
f A efi
Other investments
745,529
54,874
15,514
17,300
73,621
906,838
u t o
st f 
r
Receivables
280,314
20,848
17,848
5,788
83,116
407,914
a  
lia
Payables
(101,470)
(19,454)
-
(349,143)
-
(470,067)
ns
Total physical 
71,913,275
7,119,729
4,045,456
12,191,141
16,649,725 111,919,326
exposure
Forward exchange 
contracts and 
2 A
0 n
currency swaps
1 n
8 u
-2 a
- buy foreign 
0 l R
13,056,401
3,422,131
616,800
668,774
15,757,389
33,521,495
19 e
currency
port 
- sell foreign 
 
(55,632,676)
(5,778,800)
(4,747,047)
(2,902,132) (10,495,688) (79,556,343)
currency
Currency options
30,884
-
-
-
-
30,884
Total derivative 
(42,545,391)
(2,356,669)
(4,130,247)
(2,233,358)
5,261,701 (46,003,964)
exposure
Total net exposure
29,367,884
4,763,060
(84,791)
9,957,783
21,911,426
65,915,362
1.  Other includes AUD equivalent exposures to other currencies which, when considered individually, are immaterial.

---

142
Note 16
Financial instruments and financial risk management (continued)
16.3.2 Foreign currency risk management (continued) 
The Fund and FFICs’ exposure in Australian equivalents to foreign currency risk at 30 June 2018 was as follows:
USD  
EUR  
GBP 
JPY 
Other1  
Total 
30 June 2018
AUD $’000
AUD $’000
AUD $’000
AUD $’000
AUD $’000
AUD $’000
Cash & cash 
 2,442,599 
 161,798 
 86,278 
 101,660 
 246,012 
3,038,347
equivalents
Listed equities and 
listed managed 
 19,034,668 
 3,433,753 
 1,888,032 
 3,763,998 
 11,193,332 
39,313,783
investment schemes 
Interest bearing 
 4,347,975 
 265,098 
 190,568 
 7,389,444 
 248,653 
12,441,738
securities
Collective 
 38,184,791 
 3,778,520 
 2,315,108 
 94,672 
 - 
44,373,091
investment vehicles
Other investments
 495,800 
 55,381 
 20,834 
 64,495 
 4,920 
641,430
Receivables
 129,504 
 41,330 
 37,774 
 4,347 
 63,294 
276,249
Payables
 (247,731)
 (25,965)
 (16,032)
 (790,350)
 (9,316)
(1,089,394)
Total physical 
 64,387,606 
 7,709,915 
 4,522,562 
 10,628,266 
 11,746,895 
98,995,244
exposure
Forward exchange 
contracts and 
currency swaps
- buy foreign 
 10,541,618 
 2,025,901 
 159,645 
 795,389 
 14,911,721 
28,434,274
currency
- sell foreign 
(41,970,331)
(10,207,274)
 (4,371,554)
 (4,196,202)
 (7,719,826) (68,465,187)
currency
Currency options
 41,609 
-
-
-
-
41,609
Total derivative 
(31,387,104)
 (8,181,373)
 (4,211,909)
 (3,400,813)
 7,191,895   (39,989,304)
exposure
Total net exposure
 33,000,502 
 (471,458)
 310,653 
 7,227,453 
 18,938,790 
 59,005,940
1.  Other includes AUD equivalent exposures to other currencies which, when considered individually, are immaterial.

---

143
Note 16
Financial instruments and financial risk management (continued)
16.3.2 Foreign currency risk management (continued) 
06
s F
Foreign currency sensitivity analysis
ta in
t a
e nci
The following table demonstrates the impact on the Fund and the FFICs’ operating result of a 8.7% (2018: 9.2%) 
m
e a
movement in exchange rates relative to the Australian dollar at 30 June 2019, with all other variables held constant. 
nts l 
If the foreign currency rises against the Australian dollar there will be a positive impact on the operating result. It is 
assumed that the relevant change occurs as at the reporting date and the results presented are shown after taking into 
account the implementation of the Board’s foreign currency exposure policy (that is, the sensitivity is calculated on the 
net exposure presented on the two previous tables).
f I
u n
t v
u
30 June 2019 
e
r s
e g t
Impact on operating result 
in
e g f
n
 $’000
e o
r r t
a
+ 8.7% movement
 8,211,055
ti h
o e b
ns o
- 8.7% movement
 (8,073,499)
en
f A efi
u t o
st f 
30 June 2018 
ra  
l
Impact on operating result 
ians
 $’000
+ 9.2% movement
 7,134,323 
- 9.2% movement
 (6,975,279)
2 A
0 n
1
16.3.3 Equity price risk
n
8 u
-2 a
0 l R
Public markets equity price risk
19 epo
The Fund and the FFICs are exposed to equity price risks arising from public market equity investments. The equity price 
rt 
risk is the risk that the value of our equity portfolio will decrease as a result of changes in the levels of equity indices 
 
and the price of individual stocks. The Fund and FFICs hold all of its equities at fair value through profit or loss.
The Fund and FFICs’ exposure to public market equity price risk at the reporting date was as follows:
20191 
20181 
 $’000
$’000
Domestic listed equities and listed managed investment 
 12,388,540 
 10,210,608 
schemes
International listed equities and listed managed 
 44,590,317 
 39,313,782 
investment schemes
Total equity price risk exposure
56,978,857
49,524,390
1.  Total balances will not agree with the investment balances reported in Note 7 as this disclosure includes additional public market equities held by 
the FFICs.

---

144
Note 16
Financial instruments and financial risk management (continued)
16.3.3 Equity price risk (continued)
Equity derivative contracts
The Fund had open positions in exchange traded equity futures contracts and exchange traded and over the counter 
equity option contracts as at 30 June 2019. The Act governs the use of financial derivatives as detailed in Note 2.3.3. 
Equity futures, options and warrants are used to manage market exposures to equity price risk and to ensure that asset 
allocations remain within approved limits. The Fund’s counterparties for over the counter equity options include major 
banking firms and their affiliates. The Fund diversifies its exposure by utilising multiple counterparties, by considering 
each counterparty’s credit rating, and by executing such contracts pursuant to master netting agreements. All over the 
counter transactions are undertaken using ISDAs. The Fund’s equity futures contracts are cash margined daily with the 
relevant futures clearing exchange. The notional value of the open contracts and their fair value are set out below:
Notional 
Fair Market 
Notional 
Fair Market 
Value 2019 
Value 2019 
Value 2018 
Value 2018 
 $’000
$’000
$’000
 $’000
Buy domestic equity futures 
112,487
1,350
80,693
1,608
contracts
Buy international equity futures 
3,688,533
75,329
412,951
(11,219)
contracts
Sell international equity futures 
-
-
(597,396)
11,334
contracts
Over the counter international 
(3,062,571)
41,333
(947,596)
5,520
equity index put options 
Over the counter international 
2,712,134
85,426
11,584,104
421,984
equity index call options
Exchange traded warrants 
-
-
-
130
domestic
Exchange traded warrants 
9,538
5,889
7,910
3,439
international
Total 
209,3271
432,7961
1.  Total balances will not agree with the investment balances reported in Note 7 as this disclosure includes additional equity derivatives held by the FFICs.

---

145
Note 16
Financial instruments and financial risk management (continued)
16.3.3 Equity price risk (continued)
06
s F
Equity price sensitivity analysis
ta in
t a
e nci
The analysis below demonstrates the impact on the Fund and FFICs’ operating result of the following movements:
m
e a
nts l 
 
\
+/- 20% on Australian equities
 
\
+/- 15% on International equities
The sensitivity analysis has been performed to assess the direct risk of holding equity instruments and associated 
derivatives. The analysis is undertaken on the base currency values of the underlying exposures. Currency risk 
f I
sensitivity is considered separately in the currency sensitivity table presented in Note 16.3.2. The percentage change 
u n
t v
u e
for each sub-class noted in the table below is measured with reference to each underlying security’s forward looking 
r s
e g tin
beta, which is a measure of how the underlying security price would change relative to an absolute increase or decrease 
e g f
n
in the market portfolio which has a beta of 1. 
e o
r r t
ati h
o e b
n
2019 Impact on operating result  2018 Impact on operating result 
s o en
$’000
$’000
f A efi
u t o
20% increase in Australian equities
s
3,624,788
3,572,582
t f 
ra  
l
15% increase in International equities
15,004,158
12,624,074
ians
Total
18,628,946
16,196,656
20% decrease in Australian equities
(3,624,788)
(3,572,582)
15% decrease in International equities
(14,731,977)
(11,708,559)
Total
(18,356,765)
(15,281,141)
2 A
0 n
1 n
8 u
-2 a
0 l R
16.3.4 Other price risk (collective investment vehicles)
19 epo
The Fund and FFICs are exposed to other price risks arising from its investments in collective investment vehicles. The 
rt  
Fund and FFICs mitigate this risk through diversification of its investments. 
As noted in Note 16.6, in the absence of active markets for a particular investment, judgement is required in determining 
fair value which introduces an increased element of uncertainty in the determination of that fair value. Collective 
investment vehicle pricing requires this judgement to be exercised in determining appropriate market reference 
transactions, pricing or earnings multiples, cash flow estimates and market discount rates. 
Similarly, when estimating the potential sensitivity of the inputs into the fair values, there is judgement required as to 
how to determine what a reasonable change in underlying inputs might be in the next financial period. The use of proxy 
information to assist in determining these sensitivities is detailed below.
Private real estate proxy
A proxy index of publicly traded real estate investment trusts (“REITs”) has been created that is appropriate for 
the geographical exposure of the portfolio. 
Private equity proxy 
A proxy after consideration of the investment strategy and geographical exposure of each private equity investment has 
been created. For example, a venture capital strategy is proxied using micro cap equities in the appropriate geography. 

---

146
Note 16
Financial instruments and financial risk management (continued)
16.3.4 Other price risk (col ective investment vehicles) (continued)
Infrastructure proxy
Utilisation of an appropriate index of publicly traded infrastructure companies in the appropriate geography and sector is 
used as a proxy.
Alternative strategy funds
An appropriate market index of public traded assets or similar alternative strategy funds is used as a proxy. 
Other price risk sensitivity analysis
The sensitivity analysis for other price risk using the proxies noted above is incorporated within the interest rate 
sensitivity analysis and equity risk sensitivity analysis presented earlier in Notes 16.3.1 and 16.3.3.
16.4 Liquidity risk management
Liquidity risk is the vulnerability of portfolio cash-flow management to compromise or failure. In particular, it is the risk 
that insufficient at-call liquidity is available to meet the Fund’s liabilities and obligations as they fall due.
The Fund devotes considerable resources to liquidity risk management and the Liquidity Risk Management Policy is one 
of four main investment policies that support the investment process and help to ensure that the Fund and the FFICs 
takes ‘acceptable but not excessive’ risk. 
The implementation of the Liquidity Risk Management Policy relies upon the following primary inputs:
 
\
A daily stress test that is designed to ensure that the Fund and the FFICs hold enough at-call liquidity to meet our 
short-term obligations at all times. If the level of at-call liquidity in the Fund and the FFICs is insufficient to pass this 
test, it must be replenished;
 
\
A portfolio projection model that forecasts the prospective build of the Fund and the FFICs, based on cash flow 
projections in a range of different market conditions;
 
\
A commitment register of all contractual and discretionary capital commitments that may need to be funded with 
at-call liquidity in the future;
 
\
A contingency plan that is designed to expedite access to alternative forms of at-call liquidity should access to 
traditional sources be constrained.
The following tables summarise the maturity profile of the Fund and FFICs’ financial liabilities, net and gross settled 
derivative financial liability instruments into relevant maturity groupings based on the remaining period at the 
reporting date to the contractual maturity date. The tables have been drawn up based on the contractual discounted 
cash flows. As the majority of payments occur within one year, the difference between discounted and undiscounted 
cashflows is immaterial.

---

147
Note 16
Financial instruments and financial risk management (continued)
16.4 Liquidity risk management (continued)
06
s F
The following tables summarise the maturity profile of the Fund and FFICs’ financial liabilities, net and gross settled 
ta in
t a
derivative financial liability instruments into relevant maturity groupings based on the remaining period at the 
e nci
m
reporting date to the contractual maturity date. The tables have been drawn up based on the contractual discounted 
e a
nts l 
cash flows. As the majority of payments occur within one year, the difference between discounted and undiscounted 
cashflows is immaterial.
Carrying 
Total 
amount 
f I
u n
Less than 
3 months 
contractual 
(assets)/ 
t v
u e
r s
3 months 
to 1 year  1 to 5 Years 
> 5 Years  cashflows 
liabilities 
e g tin
 $’000
$’000
$’000
 $’000
$’000
$’000
e g f
ne o
r r t
2019
ati h
o e b
Non-derivatives
ns o en
Unsettled purchases
479,820
-
-
-
479,820
479,820
f A efi
u t o
Other payables
s
108,438
-
-
-
108,438
108,438
t f 
ra  
l
Total non-derivatives
588,258
-
-
-
588,258
588,2581
ians
Derivatives
Net settled (interest rate swaps, 
credit default swaps, interest rate 
9,783
85,146
-
-
94,929
94,929
options)
Gross settled (forward foreign 
2 A
0 n
exchange contracts, cross 
1 n
8 u
currency swaps)
-2 a
0 l R
1
 - (inflow)
(26,055,932)  (8,832,863) 
-
- (34,888,795)  (34,888,795)
9 epo
 - outflow
r
26,430,009 
 8,927,322 
-
-
 35,357,331   35,357,331
t  
Total derivatives
 383,860 
 179,605 
-
-
 563,465 
 563,4651 
1.  Total balances do not agree with the investment balance reported in Note 7 and the payables balances reported in Note 9 as the FFICs are 
included in this disclosure.
The Fund may be required to provide cash as collateral to counterparties under legal agreements when derivatives are in 
a net liability position. Refer to Note 7 for details on cash provided as collateral.

---

148
Note 16
Financial instruments and financial risk management (continued)
16.4 Liquidity risk management (continued)
As at 30 June 2018:
Carrying 
Total 
amount 
Less than 
3 months 
contractual 
(assets)/ 
3 months 
to 1 year  1 to 5 Years 
> 5 Years  cashflows 
liabilities 
 $’000
$’000
$’000
 $’000
$’000
$’000
2018
Non-derivatives
 
Unsettled purchases
1,096,558 
-
-
-
1,096,558 
1,096,558
Other payables
94,452 
-
-
-
94,452 
94,452
Total non-derivatives
1,191,010 
-
-
-
1,191,010 
1,191,0101
Derivatives
Net settled (interest rate swaps, 
credit default swaps, interest rate 
options)
Gross settled (forward foreign 
exchange contracts, cross 
 229,380 
 1,252 
-
-
230,632
230,632
currency swaps)
 - (inflow)
(32,698,538)  (9,690,967) 
-
- (42,389,505)  (42,389,505)
 - outflow
 33,786,968 
 9,932,327 
-
-
 43,719,295 
43,719,295
Total derivatives
 1,317,810 
 242,612 
-
-
1,560,422
1,560,4221
1.  Total balances do not agree with the investment balance reported in Note 7 and the payables balances reported in Note 9 as the FFICs are 
included in this disclosure.
16.5 Credit risk 
Credit risk is the risk of loss that arises from a counterparty failing to meet their contractual commitments in full and on 
time, or from losses arising from the change in value of a traded financial instrument as a result of changes in credit risk 
on that instrument. 
The Board sets limits on the credit ratings of debt investments. These limits are reflected in the underlying investment 
mandates and are monitored by the Agency with compliance reported to the Board.
The Fund’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is 
the carrying amount of those assets as indicated in the statement of financial position.

---

149
Note 16
Financial instruments and financial risk management (continued)
16.5 Credit risk (continued)
06
s F
The Fund had, at 30 June 2019, an exposure of 6.27% (2018: 7.94%) of its net assets to interest bearing securities issued 
ta in
by domestic banks. Exposures to individual counterparties are separately identified in the table below. 
t a
e nci
m
e a
nts l 
2019  
2018  
Domestic interest bearing securities issued by: 
$’000
$’000
Westpac Banking Corporation
2,546,334
2,745,737
Australia and New Zealand Banking Group Limited
2,125,653
3,009,182
f I
u n
National Australia Bank Limited
2,918,285
2,941,786
t v
u e
r s
e g t
Commonwealth Bank of Australia
2,547,760
2,669,127
in
e g f
n
Other domestic banks
49,916
199,164
e o
r r t
at
Non-bank issued
-
6,216
i h
o e b
ns o e
Total
10,187,948
11,571,212
n
f A efi
u t o
s
The exposures presented above reconcile to Note 7 of the financial statements as follows:
t f 
ra  
lians
2019  
2018  
Domestic interest bearing securities issued by: 
$’000
$’000
Negotiable certificates of deposit - domestic
10,187,948
11,564,996
Mortgage backed securities - domestic
-
6,216
2 A
0 n
Total
10,187,948
11,571,212
1 n
8 u
-2 a
0 l R
1
Exposures are measured at the fair value of the underlying securities which is equivalent to their carrying value in the 
9 epo
statement of financial position. Any associated income which is outstanding has been included within the numbers 
rt  
presented. None of these accrued income amounts are past due. 
Credit risk derivatives
The Funds’ managers utilise credit default swaps to gain exposure to credit risk. The Act governs the use of financial 
derivatives as detailed in Note 2.3.3. 
The Fund transacts in credit default swaps in the following forms:
 
\
bi-lateral over-the-counter contracts; and
 
\
centrally cleared over-the-counter contracts.
The Fund’s bi-lateral counterparties for credit default swaps include major banking firms and their affiliates. The Fund 
diversifies its exposure by utilising multiple counterparties, by considering each counterparty’s credit rating, and, 
where contracts are not subject to mandatory clearing arrangements, by executing such contracts pursuant to master 
netting agreements. All transactions which are not centrally cleared are undertaken using ISDAs approved by the Fund. 
Centrally cleared transactions are cash margined at least daily. Managers are required to fully cash back all sold credit 
protection positions. Outstanding positions are marked to market and collateralisation of out of the money positions is 
required by each counterparty or the central clearing exchange.

---

150
Note 16
Financial instruments and financial risk management (continued)
16.5 Credit risk (continued)
The notional value of the open credit default swap positions, the impact on increasing or reducing credit exposures and 
their fair value are set out below:
Notional 
Fair Market 
Notional 
Fair Market 
Value 2019 
Value 2019 
Value 2018 
Value 2018 
 $’000
$’000
$’000
 $’000
Buy domestic equity futures 
594,173
(16,965)
793,950
(26,597)
contracts
Exchange traded warrants 
46,876
2,282
212,017
176
international
Total 
(14,683)
(26,421)
No credit risk derivative contracts are held by the FFICs.
Credit exposure by credit rating
The following table provides information regarding the credit risk exposures of the debt instruments held by the Fund 
and the FFICs according to the credit ratings of the underlying debt instruments.
2019  
2018  
$’000
$’000
Long term rated securities 
AAA
61,993
143,687
AA
140,277
60,192
A
3,062,713
3,615,398
BBB
226,972
62,602
Below Investment grade / not rated1
5,907,472
5,191,312
Short term rated securities
A-1+/A-1/A-2
17,964,742
18,929,500
Other
US Government Guaranteed
55,925
30,448
Total debt securities and cash held
27,420,094
28,033,139
Other non-debt financial assets 
136,250,568
120,994,207
Total financial assets
163,670,6622
149,027,3462
1.  The Fund and FFICs have a number of mandates with managers specialising in managing distressed debt and corporate loans portfolios. 
2.  Total balances will not agree with the investment balances reported in Note 7 as this disclosure includes cash and financial assets held by the FFICs.
Credit risk associated with receivables is considered minimal. The main receivables balance is in relation to franking 
credits which are claimable from the Australian Taxation Office annually in July each year. 
There are no overdue contractual receipts due from counterparties as at 30 June 2019 (2018: nil). 

---

151
Note 16
Financial instruments and financial risk management (continued)
16.6 Fair values of financial assets and liabilities 
06
s F
The carrying amounts of the Fund’s assets and liabilities at the end of each reporting period approximate their fair values.
ta in
t a
e nci
Financial assets and liabilities at fair value through profit or loss are measured initially at fair value. Transaction costs 
m
e a
on financial assets and financial liabilities at fair value through profit or loss are expensed immediately. Subsequent to 
nts l 
initial recognition, all instruments at fair value through profit or loss are measured at fair value with changes in their fair 
value recognised in the statement of comprehensive income. 
16.6.1 Fair value in an active market 
f I
The fair value of financial assets and liabilities traded in active markets is based on their quoted market prices at the 
u n
t v
u e
end of the reporting period without any deduction for estimated future selling costs.
r s
e g tin
e g f
The Fund values its investments in accordance with the accounting policies set out in Note 2. For the majority of its 
ne o
public market investments, the Fund relies on information provided by independent pricing services for the valuation of 
r r t
at
its investments.
i h
o e b
ns o e
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from 
n
f A efi
an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and 
u t o
s
regularly occurring market transactions on an arm’s-length basis.
t f 
ra  
lian
16.6.2 Fair value in an inactive or unquoted market
s
The fair value of financial assets and liabilities that are not traded in an active market is determined using valuation 
techniques employed by the managers the Board has engaged or by the Fund directly. These include the use of recent 
transactions to the extent these are available and are not distressed transactions, reference to the current fair value of 
a substantially similar other instrument, discounted cash flow techniques, option pricing models, the use of independent 
2 A
0 n
valuation experts or any other valuation technique that provides an estimate of prices that could be obtained in actual 
1 n
8 u
-
market transactions.
2 a
0 l R
19 e
Where discounted cash flow techniques are used, estimated future cash flows are based on best estimates and the 
por
discount rate used is a market rate at the balance date applicable for an instrument with similar terms and conditions.
t  
For other pricing models, inputs are based on market data at balance date. Fair values for unquoted equity investments 
are estimated, if possible, using applicable price/earnings ratios for similar listed companies adjusted to reflect the 
specific circumstances of the issuer.
The fair value of derivatives that are not exchange traded is estimated at the amount that the Fund would receive or 
pay to terminate the contract at the balance date taking into account current market conditions (for example, volatility 
and appropriate yield curves). The fair value of a forward contract is determined as a net present value of estimated 
future cash flows, discounted at appropriate market rates as at the valuation date. The fair value of an option contract is 
determined by applying industry standard option pricing models.

---

152
Note 16
Financial instruments and financial risk management (continued)
16.7 Fair value hierarchy 
The Fund classifies fair value measurements using a fair value hierarchy that reflects the subjectivity of the inputs used 
in making the measurements. The following tables provide an analysis of financial instruments held at year end that are 
measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair 
value is observable.
 
\
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical 
assets or liabilities
 
\
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that 
are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
 
\
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or 
liability that are not based on observable market data (unobservable inputs).
Investments whose values are based on quoted market prices in active markets, and therefore classified within Level 1, 
include active listed equities and exchange traded derivatives.
Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market 
prices, dealer quotations or alternative pricing sources supported by observable market data are classified within Level 
2. These include both investment grade and non-investment grade interest bearing securities and over the counter 
derivatives.
The Fund must appoint investment managers to invest the assets of the Fund under the Act. A significant proportion of 
these investments are made via pooled investment vehicles which in turn invest in a variety of underlying investments. 
Such pooled investments are classified as Level 3 investments in these financial statements. The diverse nature of the 
investments they make on the Fund’s behalf means it is not possible to provide additional information in these financial 
statements regarding how inputs into the valuation of Level 3 investments might change nor the resultant impact on the 
statement of comprehensive income that such changes to valuation inputs might trigger. 
The Fund ensures that valuation techniques used by managers are consistent with the Fund’s accounting policy.
As noted in Note 16.3.4 for collective investments, the Fund has used proxy investment exposures to provide sensitivity 
information surrounding the possible impact on the income of the Fund should equity or interest rate markets move up or 
down by a specified amount. 
The Fund’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the beginning of the 
reporting period. The Fund determines whether transfers have occurred between levels in the hierarchy by re-assessing 
categorisation (based on the lowest level input that is significant to the fair value measurement as a whole).

---

153
Note 16
Financial instruments and financial risk management (continued)
16.7 Fair value hierarchy (continued)
06
s F
The tables below provide information on the fair value hierarchy for the Fund and FFICs as at 30 June 2019.
ta in
t a
e nci
m
Level 1 
Level 2 
Level 3 
Total1 
e a
nts l 
 $’000
$’000
$’000
 $’000
Recurring fair value measurements
Financial assets at fair value 
through profit or loss:
f I
u n
Interest bearing securities
 - 
 23,024,934 
 1,707,848 
 24,732,782 
t v
u e
r s
e g
Listed equities and listed managed 
tin
 56,312,307 
 30,416 
 636,134 
 56,978,857 
e g f
investment schemes
ne o
r r t
a
Collective investment vehicles
 - 
 - 
 75,323,374
 75,323,374
ti h
o e b
n
Derivatives
 102,660 
 1,219,883 
 4,228 
 1,326,771 
s o en
f A e
Restricted Cash
726,793
 - 
 - 
726,793
fi
u t o
s
Total 
57,141,760
 24,275,233 
 77,671,584
159,088,577
t f 
ra  
li
Financial liabilities at fair value 
ans
through profit or loss:
Derivatives
(1,801) 
 (561,664) 
 - 
 (563,465) 
Total 
(1,801) 
 (561,664) 
 - 
 (563,465) 
1.  Total balances will not agree with the investment balances reported in Note 7 as this disclosure includes the investment related assets and 
2 A
0 n
liabilities held by the FFICs. The difference between the table above and Note 7 is financial asset investments of $1,221,934,000 and financial 
1 n
8 u
-
liability investments of $6,000.
2 a
0 l R
1
The following table presents the transfers between levels for the year ended 30 June 2019:
9 eport  
Level 1 
Level 2 
Level 3 
 $’000
$’000
$’000
Transfers between Levels 1 and 2
-
-
-
Transfers between Levels 1 and 3
14,090
-
(14,090)
Transfers between Levels 2 and 3
-
69,647
(69,647)

---

154
Note 16
Financial instruments and financial risk management (continued)
16.7 Fair value hierarchy (continued)
The following table presents the movement in Level 3 instruments for the year ended 30 June 2019 by class of 
financial instrument.
Equities and 
listed managed 
Collective 
Interest bearing 
investment 
investment 
securities 
schemes 
vehicles 
Derivatives 
Total 
$’000
$’000
$’000
$’000
$’000
Financial assets at fair 
value through profit or 
loss:
Opening balance
1,401,375
92,775
67,883,206
1,202
69,378,558
Purchases
396,266
253,622
17,787,280
813
18,437,981
Sales
(48,843)
(21,192)
(14,693,183)
-
(14,763,218)
Transfers into Level 3
4,670
34,656
-
-
39,326
Gains and losses 
recognised in 
29,506
324,210
4,346,071
2,213
4,702,000
the statement of 
comprehensive income
Transfers out of Level 3
(75,126)
(47,937)
-
-
(123,063)
Closing balance
1,707,848
636,134
75,323,374
4,228
77,671,584
There were no Level 3 financial liabilities. 

---

155
Note 16
Financial instruments and financial risk management (continued)
16.7 Fair value hierarchy (continued)
06
s F
The Fund must invest all the assets of the Fund via investment managers. Listed below are the valuation techniques and 
ta in
significant unobservable inputs for the investments classified in Level 2 and Level 3. Due to the diverse nature of the 
t a
e nci
m
Fund’s investments it is not possible to list the ranges of the inputs.
e a
nts l 
As at 30 June 2019:
Fair Value 
Valuation 
Unobservable 
 $’000
Technique
Inputs
f I
Recurring fair value measurements
u n
t v
u e
r s
Financial assets at fair value 
e g tin
e g f
through profit or loss:
ne o
r r t
Interest bearing securities
24,732,782
Discounted cash flow
Discount Rate
ati h
o e b
n
Market Approach
Earnings Multiple
s o en
f A
Broker Quotations
N/A
efi
u t o
s
Independent Pricing 
t f 
N/A
ra  
Services
lians
Recovery Rate
Illiquidity Discount
Equities and listed managed 
666,550
Discounted cash flow
Discount Rate
investment schemes
Independent Pricing 
N/A
Services
2 A
0 n
Recent Transaction
N/A
1 n
8 u
-2 a
Recovery Value
Recovery Rate
0 l R
19 e
Collective investment vehicles
74,760,388
Market Approach
Earnings Multiple
port 
Net Asset Value
 
562,986
Discounted cash flow
Discount Rate
Derivatives
Independent Pricing 
1,224,111
N/A
Services
Broker Quotations
N/A
Total 
101,946,817
Financial liabilities at fair value 
through profit or loss:
Derivatives
Independent Pricing 
(561,664)
N/A
Services
Broker Quotations
N/A
Total 
(561,664)

---

156
Note 16
Financial instruments and financial risk management (continued)
16.7 Fair value hierarchy (continued)
The tables below provide information on the fair value hierarchy for the Fund and FFICs as at 30 June 2018:
Level 1 
Level 2 
Level 3 
Total1 
 $’000
$’000
$’000
 $’000
Recurring fair value measurements
Financial assets at fair value 
through profit or loss:
Interest bearing securities
 11,042 
 23,135,295 
 1,401,375 
 24,547,712 
Listed equities and listed managed 
 49,382,612 
 49,003 
 92,775 
 49,524,390 
investment schemes
Collective investment vehicles
 - 
 439 
 67,883,206 
 67,883,645 
Derivatives
 153,193 
 932,321 
 1,202 
 1,086,716 
Restricted Cash
 623,073 
 - 
 - 
 623,073 
Total 
 50,169,920 
 24,117,058 
 69,378,558 
 143,665,536 
Financial liabilities at fair value 
through profit or loss:
Derivatives
 (12,049) 
 (1,548,373) 
 - 
 (1,560,422) 
Total 
 (12,049) 
 (1,548,373) 
 - 
 (1,560,422) 
1.  Total balances will not agree with the investment balances reported in Note 7 as this disclosure includes the investment related assets and 
liabilities held by the FFICs. The difference the table above and Note 7 is financial asset investments of $533,898,000 and financial liability 
investments of $5,000.
The following table presents the transfers between levels for the year ended 30 June 2018:
Level 1 
Level 2 
Level 3 
 $’000
$’000
$’000
Transfers between Levels 1 and 2
(768)
768
-
Transfers between Levels 1 and 3
10,437
-
(10,437)
Transfers between Levels 2 and 3
-
4,442
(4,442)

---

157
Note 16
Financial instruments and financial risk management (continued)
16.7 Fair value hierarchy (continued)
06
The following table presents the movement in Level 3 instruments for the year ended 30 June 2018 by class of 
s F
ta in
financial instrument.
t a
e nci
m
e a
nts l 
Equities and 
listed managed 
Collective 
Interest bearing 
investment 
investment 
securities 
schemes 
vehicles 
Derivatives 
Total 
$’000
$’000
$’000
$’000
$’000
f I
u n
Financial assets at fair 
t v
u e
r s
e g
value through profit or 
tin
e g f
loss:
ne o
r r t
a
Opening balance
1,563,335
77,082
57,876,767
208,136
59,725,320
ti h
o e b
n
Purchases
219,647
21,476
20,452,802
-
20,693,925
s o en
f A e
Sales
(358,533)
(1,384)
(15,340,754)
(282,297)
(15,982,968)
fi
u t o
s
Transfers into Level 3
418
17,048
-
-
17,466
t f 
ra  
li
Gains and losses 
ans
recognised in 
(18,039)
5,444
4,894,391
75,363
4,957,159
the statement of 
comprehensive income
Transfers out of Level 3
(5,453)
(26,891)
-
-
(32,344)
2 A
Closing balance
1,401,375
92,775
67,883,206
1,202
69,378,558
0 n
1 n
8 u
-2 a
0 l R
There were no Level 3 financial liabilities. 
19 eport  

---

158
Note 16
Financial instruments and financial risk management (continued)
16.7 Fair value hierarchy (continued)
The Fund must invest all the assets of the Fund via investment managers. Listed below are the valuation techniques and 
significant unobservable inputs for the investments classified in Level 2 and Level 3. Due to the diverse nature of the 
Fund’s investments it is not possible to list the ranges of the inputs.
As at 30 June 2018:
Fair Value 
Valuation 
Unobservable 
 $’000
Technique
Inputs
Recurring fair value measurements
Financial assets at fair value 
through profit or loss:
Interest bearing securities
24,536,670
Discounted cash flow
Discount Rate
Market Approach
Earnings Multiple
Broker Quotations
N/A
Independent Pricing 
N/A
Services
Recovery Rate
Illiquidity Discount
Equities and listed managed 
141,778
Discounted cash flow
Discount Rate
investment schemes
Independent Pricing 
N/A
Services
Recent Transaction
N/A
Recovery Value
Recovery Rate
Collective investment vehicles
67,883,645
Market Approach
Earnings Multiple
Net Asset Value
Discounted cash flow
Discount Rate
Derivatives
Independent Pricing 
933,523
N/A
Services
Broker Quotations
N/A
Total 
93,495,616
Financial liabilities at fair value 
through profit or loss:
Derivatives
Independent Pricing 
(1,548,373)
N/A
Services
Broker Quotations
N/A
Total 
(1,548,373)

---

159
Note 17
Events occurring after reporting date
There have been no significant events occurring after reporting date that would materially affect these 
financial statements.
06
s F
ta in
t a
e nci
m
e a
nts l 
Note 18
Special Accounts 
18.1 Special Accounts: Future Fund Special Account
f I
Legal Authority — Future Fund Act 2006, section 12.
u n
t v
u e
r s
e g
Appropriation authority – section 80 of the PGPA Act.
tin
e g f
n
Purpose — establishment and ongoing operation of the Fund. 
e o
r r t
ati h
Disclosures below are on a cash basis and consolidate departmental and administered items.
o e b
ns o enf Ae
Period from 1 July 2018  Period from 1 July 2017 
fi
u t o
s
to 30 June 2019 
to 30 June 2018 
t f 
ra  
Future Fund Special Account
$’000
$’000
lian
Balance carried from previous period
s
-
-
Bank interest amounts credited
-
-
Appropriations for reporting period
-
-
Other Receipts:
2 A
0 n
1
GST credits
2,936
5,052
n
8 u
-2 a
Amounts transferred from investment account1
320,388
371,446
0 l R
19 ep
Amounts credited to the special account 
-
-
ort  
Total Credits
323,324
376,498
Available for payments
323,324
376,498
Payments made:
nvestments debited from the Special Account (FFA s17)
Payments made
- Remuneration of Agency staff
46,857
43,663
- Remuneration of Board members
887
853
- Suppliers 
62,776
44,049
- Investment expenses 
211,201
284,861
- Purchase of capital equipment and software
1,603
3,072
Total Debits 
323,324
376,498
Balance carried forward to next year2
-
-
1.   The operations of the Fund are funded via the investment revenue generated.
2.  Excluding investments balances, see Note 18.2.

---

160
Note 18
Special Accounts (continued)
18.2 Special Accounts: Investment of Public Money
Disclosures below are on a cash basis.
Period from 1 July 2018  Period from 1 July 2017 
Future Fund Special Account: Investment of Public Money 
to 30 June 2019 
to 30 June 2018 
under section 17 of the Future Fund Act 2006 (as amended)
$’000
$’000
Opening balance
121,792,123
116,165,293
Investments made on transfer of funds from the Special 
Account
Realised investments reinvested
126,741,470
130,723,804
Interest earned reinvested
1,393,850
1,502,829
Dividends received reinvested
5,985,048
3,726,193
Franking credits received reinvested
952,916
835,678
Foreign currency realised reinvested
(1,816,670)
(244,199)
Amounts transferred to operations1
(320,388)
(371,446)
Investments realised 
(122,859,879)
(130,546,029)
Closing Balance 
131,868,470
121,792,123
1.  The operations of the Fund are funded via the investment revenue generated. 
Note 19
Reporting of outcomes
19.1 Net cost of outcome delivery 
Outcome 1: Make provision for the Commonwealth’s unfunded superannuation liabilities and payments for the creation 
and development of infrastructure, by managing the operational activities of the Future Fund, Nation Building Funds, 
DisabilityCare Australia Fund, Medical Research Future Fund and Aboriginal and Torres Strait Islander Land and Sea 
Future Fund in line with the Government’s investment mandates.
The net contribution of outcome 1 is disclosed in the Statement of comprehensive income.
19.2 Net cost of outcome delivery – Programs 
The Agency has two programs: the management of the investment of the Future Fund and the management of the 
investment of the Building Australia Fund, Education Investment Fund, DisabilityCare Australia Fund, Medical Research 
Future Fund and Aboriginal and Torres Strait Islander Land and Sea Future Fund. These investments are held for and on 
behalf of the Commonwealth of Australia. 
Program 1.1 Management of the investment of the Future Fund.
The Agency supports the Board in investing to accumulate assets for the purpose of offsetting the unfunded 
superannuation liabilities of the Commonwealth which will fall due on future generations. The net cost of this output 
delivery is presented in the Statement of comprehensive income.
Program 1.2 Management of the investment of the Building Australia Fund, Education Investment Fund, DisabilityCare 
Australia Fund, Medical Research Future Fund and the Aboriginal and Torres Strait Islander Land and Sea Future Fund 
(the BAF, EIF, DCAF,MRFF & ATSILSFF).

---

161
Note 19
Reporting of outcomes (continued)
19.2 Net cost of outcome delivery – Programs (continued) 
06
s F
Under the Nation-building Funds Act 2008, the role of the Agency was extended to include supporting the Board in 
ta in
the investment of the assets of the BAF and EIF (each a “fund”) and subsequently by the DisabilityCare Australia 
t a
e nci
m
Fund Act 2013, the Medical Research Future Fund Act 2015 and the Aboriginal and Torres Strait Islander Land and 
e a
nts l 
Sea Future Fund Act 2018 to support the Board in the investment of the assets of the DCAF, MRFF and ATSILSFF. 
The Agency charges a monthly fee to each fund to reimburse the Agency for shared costs paid by the Agency, as 
agreed with the Department of Finance. During year the Agency charged the funds a combined amount of $4,510,000 
(2018:$3,403,000) which is included in other income in the statement of comprehensive income and the amount 
owing to the Agency at 30 June 2019 was $1,181,839 (2018: $879,000). Direct costs to the BAF, EIF, DCAF, MRFF and 
f I
ATSILSFF, such as investment management and custody fees, were charged directly to each fund’s Special Account and 
u n
t v
u e
are not reported as part of these financial statements. 
r s
e g tin
e g f
ne o
r r t
ati h
o e b
Note 20
ns o en
Maturity Disclosure
f A efi
u t o
st f 
AASB 101 requires that for each asset and liability line item, the amount expected to be recovered or settled beyond 12 
ra  
li
months is disclosed as set out in the table below:
ans
As at 
As at 
As at 
As at 
30 June 2019 
30 June 2019 
30 June 2018 
30 June 2018 
<12 months 
>12 months 
<12 months 
>12 months 
 $’000
$’000
$’000
 $’000
2 A
0 n
1 n
Financial assets
8 u
-2 a
0 l R
Cash and cash equivalents
1,781,107
-
2,418,038
-
19 epo
Receivables
1,515,267
-
1,715,788
-
rt  
Investments
39,596,394
120,713,247
36,941,880
107,257,554
Other financial assets
2,991
-
1,811
-
Non-financial assets
Plant and equipment
-
3,752
-
4,774
Intangibles
-
2,944
-
3,474
TOTAL ASSETS
42,895,759
120,719,943
41,077,517
107,265,802
LIABILITIES
Financial liabilities
Investments
563,459
-
1,560,417
-
Payables
529,352
-
988,072
-
Non-financial liabilities
Employee provisions
22,736
7,000
23,927
5,033
Tax liabilities
Deferred tax liabilities
-
18,524
-
18,700
TOTAL LIABILITIES
1,115,547
25,524
2,572,416
23,733

---

162
Note 21
Budgetary reports
The following tables provide a comparison of the original budget as presented in the 2018 – 19 Portfolio Budget 
Statements (“PBS”) to the 2018 – 19 final outcome as presented in accordance with Australian Accounting Standards 
for the entity. The budget is not audited.
The 2018 – 19 budget was based on the assumption that the mandated return is achieved for each forward estimates 
year. CPI is estimated in these budget numbers. In that context, the budget construct, including related investment 
costs, was based on the estimated mandated return. Actual results will always deviate from these assumed returns. For 
2018 – 19, the Fund generated a net of costs return of $16.73bn (11.5%), an 84% increase from the budgeted amount. For 
comparative purposes, the mandated return used for budget purposes for the equivalent period was 6.4%. 
There are therefore significant variances between budgeted and actual outcomes. Due to the volatile nature of 
investment markets, it is difficult to accurately predict the financial outcomes of the Fund. Further, as PBS financial 
information is presented in a concise format which differs to the level of information presented in this financial report, 
the tables below compare actual and budgeted information for the statement of comprehensive income and statement 
of financial position. 
PBS – 
PBS – 
Year ended 
Administered 
Departmental 
Variance 
STATEMENT OF 
30 June 19 
30 June 19 
30 June 19 
30 June 19 
COMPREHENSIVE INCOME
 $’000
$’000
$’000
 $’000
Total income
17,035,187
9,654,845
80,830
7,299,512
Total expenses including income tax
307,726
525,449
80,830
(298,553)1
OPERATING RESULT FOR THE YEAR
16,727,461
9,129,396
-
7,598,065
PBS – 
PBS – 
As at 
Administered 
Departmental 
Variance 
STATEMENT OF 
30 June 19 
30 June 19 
30 June 19 
30 June 19 
FINANCIAL POSITION
 $’000
$’000
$’000
 $’000
Total assets
163,615,702
154,002,256
32,406
9,581,040
Total liabilities
1,141,071
2,049,709
32,406
(941,044)
TOTAL EQUITY AND AMOUNT 
162,474,631
151,952,547
-
10,522,084
ATTRIBUTABLE TO THE GOVERNMENT
1.  Total expenses were lower than budgeted mainly due to the total budgeted expense estimate based on the consolidation of subsidiaries under 
accounting standards which is required for budget preparation. As the Fund applies the investment entity standard, expenses incurred in 
subsidiaries are not included in the financial statements as separate expenses but are included in the change in fair value of the investment 
entities in which the expenses are incurred. 

---

163
07
07
r O
e
Other mandatory 
por ther mtinga
reporting
ndatory 
f I
u n
t v
u e
r s
e g tin
e g f
ne o
r r t
ati h
o e b
ns o enf Aefiut ostf ra lians
2 A
0 n
1 n
8 u
-2 a
0 l R
19 eport  
Resource statement
All costs for investment activity and the operations of 
The Future Fund was established in 2006 to strengthen 
the Board and Agency are met from the assets of the 
the Australian Government’s long-term financial position. 
Funds rather than from the annual appropriations through 
The outcome for the Agency is: make provision for the 
Parliament. The Board monitors the annual operating 
Commonwealth’s unfunded superannuation liabilities 
budget of the Agency to ensure the appropriate use of 
and development of infrastructure by managing the 
resources is consistent with the organisation’s objectives.
operational activities of the Future Fund, the Medical 
Nonetheless, the Agency is required to publish 
Research Future Fund, the Aboriginal and Torres Strait 
information in line with the outcome and output statement 
Islander Land and Sea Future Fund, the DisabilityCare 
used by government departments and agencies.
Australia Fund and the Nation-building Funds in line with 
the Government’s Investment Mandates.

---

164
Future Fund Management Agency resource statement
Actual Available 
Payments made  Balance remaining 
appropriation - 
(b)
(a)-(b)
current year (a)
$'000
$'000
$'000
Administered
Special accounts
376,200
376,200
–
Total special accounts receipts
376,200
376,200
–
Total resourcing and payments for entity X (A + B)
376,200
376,200
–
Procurement
$2,791,783. In addition 11 ongoing consultancy contracts 
were active during 2018-19, involving total actual 
The procurement of goods and services by the Agency 
expenditure of $579,773.
is consistent with the Commonwealth Procurement 
A summary of expenditure on consultants in 2018-19 
Rules and is based on the principles of value for money, 
is below:
open and effective competition, ethics and fair dealing, 
accountability and reporting, national competitiveness 
and industry development and support for other 
Total
Australian Government policies. These principles have 
No. of new contracts entered into 
been incorporated into the appropriate internal policies, 
during the period
28
and Internal Audit conducts probity reviews to help 
Total actual expenditure during the 
ensure compliance.
2,791,783
period on new contracts (inc. GST)
The purchase of investment management, investment 
No. of ongoing contracts engaging 
advisory, master custody and safekeeping services for the 
consultants that were entered into 
11
purpose of managing and investing the assets of public 
during a previous period
asset funds are excluded from the mandatory provisions 
Total actual expenditure during the 
of the Commonwealth Procurement Rules.
579,773
period on ongoing contracts (inc. GST)
Annual reports contain information about actual 
expenditure on contracts for consultancies. Information 
The Agency supports small business participation in the 
on the value of contracts and consultancies is available 
Commonwealth Government procurement market. Small 
on the AusTender website. Given the Agency’s purpose, 
and Medium Enterprises (SMEs) and Small Enterprise 
no campaign advertising was undertaken during the year 
participation statistics are available on the Department of 
and no reportable recruitment costs were incurred.
Finance’s website.
The Agency engages consultancy services in a variety 
The Agency recognises the importance of ensuring that 
of areas where specialist expertise is not available 
small businesses are paid on time. The results of the 
within the Agency or where an independent assessment 
survey of Australian Government Payments to Small 
is desirable. This is consistent with the Agency’s 
Business are available on the Treasury’s website.
outsourced business model. Selection processes may 
include open tender, selective tender, direct sourcing or 
The Agency’s support for small business includes using 
the use of a panel.
the Commonwealth Contracting Suite for procurements 
under $200,000 in accordance with applicable 
During 2018-19 28 new consultancy contracts were 
Department of Finance resource management guidance.
entered into involving a total actual expenditure of 

---

165
Freedom of Information
As a small tenant in a large multi-tenancy office building 
it is difficult to establish meaningful metrics for energy 
Agencies subject to the Freedom of Information Act 1982 
and water use or to establish appropriate benchmarking 
07
and monitoring arrangements. The building from which 
r O
(FOI Act) are required to publish information to the public 
epor th
as part of the Information Publication Scheme (IPS). This 
the Agency operates has a NABERS 3 star rating. 
er m
t
requirement is in Part II of the FOI Act and has replaced 
Building management continues to implement a range of 
ing a
the former requirement to publish a section 8 statement 
energy, waste recycling and water initiatives throughout 
nda
in an annual report.
the building including the Agency’s tenancy.
tory 
Each agency must display on its website a plan showing 
A NABERS self-assessment of the Agency’s tenancy 
what information it publishes in accordance with the 
during the year resulted in a rating of 5 stars. This is 
IPS requirements. Information regarding the Agency’s 
due to a number of energy saving initiatives, including 
f I
u n
Information Public Scheme Plan is available at www.
recycling office consumables, and using energy saving 
t v
u e
r s
e g
futurefund.gov.au/About-us/access-to-information/
features on office equipment and lighting.
tin
e g f
information-publication-scheme.
ne o
r r t
Disability reporting mechanisms
ati h
o e b
Advertising and market research
n
Since 1994 Commonwealth departments and agencies 
s o en
During 2018-19 the Agency undertook recruitment 
have reported on their performance as policy adviser, 
f A efi
advertising. The total cost of this was $2,235.
purchaser, employer, regulator and provider under the 
u t o
st f 
Commonwealth Disability Strategy.
ra  
No campaign advertising was undertaken.
lia
In 2007-08 reporting on the employer role was transferred 
ns
Grant programs
to the Australian Public Service Commission’s State 
of the Service Report and the APS Statistical Bulletin. 
The organisation does not administer any grant programs.
These reports are available at www.apsc.gov.au. From 
Ecological y sustainable 
2010-11 departments and agencies have no longer been 
2 A
required to report on these functions.
0 n
1 n
8 u
development and environmental 
The Commonwealth Disability Strategy has been 
-2 a
0 l R
overtaken by a new National Disability Strategy 
1
performance
9 ep
2010–2020, which sets out a 10-year national policy 
or
The Environment Protection and Biodiversity 
t 
framework to improve the lives of people with disability, 
 
Conservation Act 1999 requires the Agency to report on 
promote participation and create a more inclusive society. 
how its activities accord with ecologically sustainable 
A high level two-yearly report will track progress against 
development and on its environmental performance.
each of the six outcome areas of the Strategy and present 
The ‘How we invest’ section of this report refers to 
a picture of how people with disability are faring. The first 
how environmental, social and governance matters are 
of these reports can be found at www.dss.gov.au.
incorporated into the investment decision-making which 
is the central purpose of the organisation.

---

166
2018-19 annual performance 
In February 2019 the Board also took on management of 
the Aboriginal and Torres Strait Islander Land and Sea 
statement
Future Fund (ATSILS Fund).
Introductory statement
Each fund is established by legislation and the risk 
and return objectives for each of the funds are set by 
As required by the Future Fund Act 2006 and the Public 
Investment Mandate Directions issued by the Treasurer 
Governance, Performance and Accountability Act 2013 
and Minister for Finance to the Board.
(PGPA Act), this annual performance statement relates 
to the Future Fund Management Agency (Agency) and 
The Agency supports the Board with investing funds for 
the Future Fund Board of Guardians (Board) as if they 
which the Board is responsible in line with the Investment 
were a single Commonwealth entity (collectively referred 
Mandate Directions for each fund.
to as the ‘organisation’).
The Portfolio Budget Statements identify the Outcome 
As the Accountable Authority of the organisation for this 
as: Make provision for the Commonwealth’s unfunded 
purpose, I present the annual performance statement of 
superannuation liabilities, payments for the creation 
the organisation, as required under paragraph 39(1)(a) 
and development of infrastructure and payments from 
of the PGPA Act. In my opinion, this annual performance 
the DisabilityCare Australia Fund and Medical Research 
statement is based on properly maintained records, 
Future Fund by managing the investment activities of 
accurately reflects the performance of the organisation, 
the Future Fund, Nation-building Funds, DisabilityCare 
and complies with subsection 39(2) of the PGPA Act.
Australia Fund and Medical Research Future Fund, in line 
with the Government’s investment mandates (Outcome 1).
Hon Peter Costello AC
Accountable Authority, Future Fund Management Agency 
Results
Chair, Future Fund Board of Guardians
As an investment institution, the achievement of the 
return and risk objectives set by the Government for 
24 September 2019
each special purpose public fund is the key measure 
of performance. These expectations are set out in 
Purpose
the Investment Mandate Directions issued by the 
The organisation is responsible for investing for the 
responsible Ministers.
benefit of future generations of Australians. Established 
The ATSILS Fund was established in February 2019 
in 2006 as Australia’s sovereign wealth fund, its main 
and is not reflected in the performance criteria set 
objective is to strengthen the Commonwealth’s long-term 
out in 2018-19 Portfolio Budget Statements or the 
financial position.
organisation’s Corporate Plan. Noting that the Fund is in 
The Board has responsibility for investing the assets 
an initial transition period, the organisation is developing 
of special purpose public asset funds including the 
a long-term strategic asset allocation, and performance 
Future Fund, the Medical Research Future Fund, the 
results are not discussed in this statement.
DisabilityCare Australia Fund and two Nation-building 
Funds (the Building Australia Fund and the Education 
Investment Fund).

---

167
Performance criterion one – management of the investment of the Future Fund
07
Provide assistance and advice to the Board in pursuit of achieving the Investment Mandate target return over 
r O
epor th
the long term (interpreted as rolling 10-year periods) with acceptable but not excessive risk.
er m
tin
The target return set out in the Investment Mandate is an average of at least 4% to 5% above the Consumer 
g an
Price Index (CPI) over the long term.
datory 
Criterion source
2018-19 performance criteria outlined in the 2018-19 Portfolio Budget Statements (Outcome 1, Program 1.1) 
and the 2018-19 Corporate Plan (Section 3, Performance).
f I
u n
t v
u e
r s
e g ti
Result against performance criterion
n
e g f
ne o
Performance against the Future Fund Investment Mandate Direction is set out in the table below.
r r t
ati h
o e b
n
Returns: Future Fund
s o en
f A efi
Period to 30 June 2019
Return pa (%)
Target return1 pa (%) 
u t o
s
CPI + target return
t f 
ra  
lia
From May 2006
8.2
6.7
ns
10 years
10.4
6.5
Seven years
11.3
6.3
Five years
9.9
5.9
2 A
Three years
9.8
6.0
0 n
1 n
8 u
One year
11.5
5.6
-2 a
0 l R
19 e
1.  The Investment Mandate sets a benchmark target return of at least CPI + 4.5% to 5.5% pa to 30 June 2017 and CPI + 4% to 5% pa thereafter.
port  
Performance criterion two – management of the investment of the Australian Government investment funds
Provide assistance and advice to the Board in pursuit of achieving the Investment Mandate Direction target 
returns as follows:
 
\
For each of the Nation-building Funds and the DisabilityCare Australia Fund, the Australian three-month 
bank bill swap rate + 0.3% per annum, calculated on a rolling 12-month basis while minimising the probability 
of capital loss over a 12-month horizon.
 
\
For the Medical Research Future Fund, an average return of at least the Reserve Bank of Australia Cash Rate 
target +1.5% to 2.0% per annum, net of investment fees, over a rolling 10-year term with acceptable but not 
excessive risk.

---

168
Criterion source
2018-19 performance criteria outlined the 2018-19 Portfolio Budget Statements (Outcome 1, Program 1.2) and 
the 2018-19 Corporate Plan (Section 3, Performance).
Result against performance criterion
In 2018-19, the Nation-building Funds (the Building Australia Fund and Education Investment Fund) each 
achieved a return of 2.3%. The target benchmark return for the Nation-building Funds during the period was 2.3%.
In 2018-19 the DisabilityCare Australia Fund generated a return of 2.2%. The target benchmark return for the 
period was 2.3%.
From inception in September 2015 to 30 June 2019, the Medical Research Future Fund has generated a return of 
4.5% pa against a target benchmark return of 3.0% pa. In 2018-19 the Fund achieved a return of 5.2%, exceeding 
its target benchmark of 3.0%.
Analysis of performance against purpose
2018-19 was a challenging year for investors. The first 
half of the financial year was characterised by volatile 
The organisation is performing well against its stated 
markets as concerns regarding geopolitical issues 
purpose.
came to the fore. This led to a period of monetary policy 
The Future Fund has exceeded the target benchmark 
easing by central banks which, together with market 
return over each time period since inception adding over 
expectations of further easing and continued global 
$102.1 billion to the value of the Future Fund. These 
economic growth, supported strong asset returns in the 
returns have been delivered while avoiding excessive risk.
second half of the year.
The Medical Research Future Fund has exceeded its 
In the longer term the global economy will face structural 
target benchmark return since inception. We have 
challenges including demographic shifts and high levels 
continued to diversify the Fund in line with our investment 
of debt. 
strategy in 2018-19. The Fund also exceeded its target 
We maintain our view that long-term forward-looking 
benchmark over a one-year period, noting that returns are 
returns are lower relative to history. We will continue to 
to be assessed over rolling 10-year periods.
exercise patience and diligence in investing the assets 
The Nation-building Funds also performed well, meeting 
of the funds in line with their relevant Investment 
their target benchmark in 2018-19. The DisabilityCare 
Mandate Directions.
Australia Fund achieved a return of 2.2%, marginally 
below its target benchmark of 2.3%.

---

169
08
07
r O
e
References 
por ther mtinga
and index
ndatory 
f I
u n
t v
u e
r s
e g tin
e g f
ne o
r r t
ati h
o e b
ns o enf Aefiut ostf ra lians
2 A
0 n
1 n
8 u
-2 a
0 l R
19 eport  

---

170
Appendix A
Investment managers engaged by the Future Fund 
Board of Guardians as at 30 June 2019
Table: Investment managers as at 30 June 2019
Asset Class
Manager
Equities
Australian Equities
 
\
Macquarie Investment Management
Developed market equities
 
\
Blackstone Alternative Asset Management
 
\
BlackRock Alternative Advisors
 
\
Man GLG
 
\
State Street Global Advisors
Emerging market equities
 
\
State Street Global Advisors
Private equity
Buy out
 
\
Advent International Corporation 
 
\
American Industrial Partners
 
\
Apax Partners
 
\
Archer Capital
 
\
Bain Capital
 
\
Berkshire Partners
 
\
Charterhouse Capital Partners
 
\
Citic Capital
 
\
GI Partners
 
\
Hellman & Friedman
 
\
Quadrant Private Equity
 
\
RCP Advisors
 
\
Seidler Equity Partners
 
\
Siris Capital
 
\
Southern Cross Management
 
\
The Growth Fund
 
\
Vitruvian Investment Partners

---

171
Asset Class
Manager
Venture and growth
 
\
Adams Street Partners
08
an R
 
\
Bessemer Venture Partners
e
d f
 in e
 
\
CDH Investments
re
de n
 
\
Columbia Capital
c
x es
 
\
FountainVest Partners
 
 
\
Greenspring Associates
 
\
Hillhouse Capital
 
\
Horsley Bridge Partners
f I
u n
t v
u
 
\
Lightspeed Venture Partners
e
r s
e g tin
 
\
New Enterprise Associates
e g f
ne o
 
\
Playground Global
r r t
ati h
 
\
Quilvest
o e b
ns o e
 
\
Xiang He Capital
n
f A efi
Special opportunities
 
\
Adams Street Partners
u t o
st f 
r
 
\
HarbourVest Partners
a  
lia
 
\
Oaktree Capital Management
ns
 
\
TowerBrook Capital Partners
Property
Unlisted
 
\
Altarea Cogedim
2 A
 
\
Berkshire Property Advisors
0 n
1 n
8 u
 
\
BlackRock
-2 a
0 l R
1
 
\
Brookfield Asset Management
9 epo
 
\
Columbia Pacific Advisors
rt  
 
\
CorVal Partners
 
\
Garrison Investment Group LP
 
\
Harbert Management Corporation
 
\
Hillwood Investment Properties
 
\
ICAMAP Advisory
 
\
Lend Lease Investment Management
 
\
Morgan Stanley Real Estate Investing
 
\
PEET Limited
 
\
The Townsend Group
 
\
Vicinity Centres
Listed
 
\
State Street Global Advisors

---

172
Asset Class
Manager
Infrastructure & Timberland
Unlisted
 
\
AMP Capital Investors
 
\
Campbell Global
 
\
Corsair Infrastructure Management
 
\
Global Infrastructure Partners
 
\
HRL Morrison & Co
 
\
Morgan Stanley Infrastructure
 
\
Oaktree Capital Management
 
\
Starwood Energy
Listed
 
\
DWS
 
\
State Street Global Advisors
Debt
High grade debt
 
\
Colonial First State Global Asset Management
 
\
Goldman Sachs Asset Management
 
\
M&G Investment Management Limited
 
\
Macquarie Investment Management
 
\
PIMCO Australia
High yield debt
 
\
Ares Management
 
\
Bain Capital Credit 
 
\
BlackRock Investment Management
 
\
Glen Point Capital
 
\
Hayfin Asset Management 
 
\
Lazard Asset Management 
 
\
Oak Hill Advisors
 
\
Oaktree Capital Management
 
\
PAG Holdings Limited
 
\
Quadrant Real Estate Advisors 
 
\
Westbourne Credit Management Limited
Distressed and event driven
 
\
Bain Capital Credit
 
\
Centerbridge Partners L.P
 
\
Oak Hill Advisors
 
\
Oaktree Capital Management

---

173
Asset Class
Manager
Alternatives
08
an R
Multi-strategy/relative value
 
\
Citadel Advisors
e
d f
 in e
 
\
Wellington Investment Management
re
de n
Macro-directional
 
\
MAN AHL Partners LLP
c
x es 
 
\
BlackRock Alternative Advisors 
 
\
Bridgewater Associates, Inc
 
\
Pendal Group
 
\
Citadel Advisors
f I
u n
t v
u e
 
\
Clocktower Group L.P.
r s
e g tin
 
\
Goldman Sachs Asset Management L.P.
e g f
ne o
 
\
Glen Point Capital
r r t
ati h
o
 
\
GMO Australia
e b
ns o e
 
\
Ionic Capital Management
n
f A efi
 
\
Key Square Capital Management LLC
u t o
st f 
r
 
\
QMS Capital Management
a  
lian
 
\
Athanor Capital L.P.
s
Alternative risk premia
 
\
Atom Investors L.P.
 
\
Elementum Advisors
 
\
Hiscox Re Insurance Linked Strategies Ltd
2 A
 
\
MAN FRM Investment Management Ltd
0 n
1 n
8 u
 
\
SouthPeak Investment Management
-2 a
0 l R
1
 
\
Wellington Investment Management
9 epo
Overlay strategies
 
\
Ashmore Investment Management Limited 
rt  
 
\
Insight Investment Management (Global)
 
\
Legal & General Investment Management Limited 
 
\
Macquarie Investment Management
 
\
PIMCO Australia
 
\
State Street Global Advisors Limited
 
\
UBS Securities Australia Limited
Cash
 
\
Colonial First State Global Asset Management
 
\
Macquarie Investment Management
 
\
PIMCO Australia

---

174
Appendix B
Investment Mandate Directions
Future Fund Investment Mandate Direction 2017
Part 1 Preliminary
Part 2 Direction
1. Name of Direction
6. Benchmark return
This Direction is the Future Fund Investment Mandate 
The Board is to adopt an average return of at least the 
Direction 2017.
Consumer Price Index (CPI) + 4 to + 5 per cent per annum 
over the long term as the benchmark return on the Fund.
2. Commencement
In targeting the benchmark return, the Board must 
This Direction commences on 1 July 2017, or on the 15th 
determine an acceptable but not excessive level of risk 
day after it is given to the Board, whichever occurs later.
for the Fund measured in terms such as the probability of 
Note: Section 42 of the Legislative Instruments Act 2003 (which deals 
losses in a particular year.
with the disallowance of legislative instruments) does not apply to this 
instrument: see section 44 of that Act. Part 6 of that Act (which deals 
7. Limits for holdings of listed companies
with the sunsetting of legislative instruments) does not apply to this 
instrument: see section 54 of that Act.
The Board must establish a limit for holdings on any listed 
company in order to prevent a breach of the statutory 
3. Revocation of Previous Direction
limits imposed by sections 21 and 84C of the Act.
The Future Fund Investment Mandate Direction 2014 is 
8. Board must consider impacts from its 
revoked in full.
investment strategy
4. Definitions
In undertaking its investment activities, the Board must 
In this Direction:
act in a way that:
Act means the Future Fund Act 2006.
(a) minimises the potential to effect any abnormal change 
in the volatility or efficient operation of Australian 
Fund means the Future Fund.
financial markets; and
Board means the Future Fund Board of Guardians.
(b) is unlikely to cause any diminution of the Australian 
responsible Ministers has the same meaning as 
Government’s reputation in Australian and 
in the Act.
international financial markets.
5. Object of this Direction
9. Corporate Governance
The object of this Direction is to give guidance to the 
The Board must have regard to international best practice 
Board in relation to its investment strategy for the Future 
for institutional investment in determining its approach to 
Fund. The Future Fund Board of Guardians is required 
corporate governance principles, including in relation to 
under section 18 of the Act to seek to maximise the return 
its voting policy.
earned on the Fund over the long term, consistent with 
international best practice for institutional investment 
and subject to its obligations under the Act and any 
directions given by the responsible Ministers under 
subsection 18(1) or subclause 8(1) of Schedule 1 of 
the Act.
This Direction is given under subsection 18(1) of the Act 
to articulate the Government’s expectations for how the 
Fund will be invested and managed by the Board.
Investments by the Future Fund will be confined to 
financial assets.

---

175
Medical Research Future Fund Investment Mandate Direction 2015
Part 1 Preliminary
Part 2 Direction
08
an Re
1. Name of Direction
5. Benchmark return
d f
 in ere
de
This Direction is the Medical Research Future Fund 
The Board is to adopt an average return of at least the 
nc
x es
Investment Mandate Direction 2015.
Reserve Bank of Australia Cash Rate target + 1.5 to 2.0 
 
per cent per annum, net of investment fees, over a rolling 
2. Commencement
10 year term as the benchmark return on the Fund.
This Direction commences on the 15th day after it is given.
In targeting the benchmark return, the Board must 
Note: Section 42 of the Legislative Instruments Act 2003 (which deals 
determine an acceptable but not excessive level of risk 
f I
u n
t v
with the disallowance of legislative instruments) does not apply to this 
for the Fund measured in terms such as the probability of 
u e
r s
e g
instrument: see section 44 of that Act. Part 6 of that Act (which deals 
t
losses in a particular year. In determining the level of risk, 
in
with the sunsetting of legislative instruments) does not apply to this 
e g f
the Board must take into account:
n
instrument: see section 54 of that Act.
e o
r r t
a
 
\
the principle that the nominal value of the credits to 
ti h
o e b
n
3. Definitions
the Fund be preserved over the long term; and
s o en
f A e
In this Direction:
 
\
the principle to moderate the volatility of the 
fi
u t o
s
Act means the Medical Research Future Fund Act 2015.
maximum annual distribution.
t f 
ra  
lia
Board means the Future Fund Board of Guardians.
6. Board must consider impacts from its 
ns
Fund means the Medical Research Future Fund.
investment strategy
responsible Ministers has the same meaning as 
In undertaking its investment activities, the Board must 
in the Act.
act in a way that:
2 A
(a) minimises the potential to effect any abnormal change 
0 n
1 n
4. Object of this Direction
in the volatility or efficient operation of Australian 
8 u
-2 a
financial markets; and
0 l R
The Fund has been established to provide grants of 
19 ep
financial assistance to support medical research and 
(b) is unlikely to cause any diminution of the Australian 
or
medical innovation over the long term.
t 
Government’s reputation in Australian and 
 
The object of this Direction is to give guidance to the 
international financial markets.
Board in relation to its investment strategy for the Fund. 
The Board is required under section 40 of the Act to:
7. Corporate Governance
The Board must have regard to international best practice 
 
\
seek to maximise the return earned on the Fund over 
the long term, consistent with international best 
for institutional investment in determining its approach to 
practice for institutional investment; and
corporate governance principles, including in relation to 
its voting policy.
 
\
to enhance the commonwealth’s ability to provide 
grants of financial assistance to support medical 
research and innovation, subject to its obligations 
under the Act and any directions given by the 
responsible Ministers under the Act.
This Direction is given under subsection 39(1) of the Act 
to articulate the Government’s expectations for how the 
Fund will be invested and managed by the Board.

---

176
Aboriginal and Torres Strait Islander Land and Sea Future Fund 
Investment Mandate Direction 2019
Part 1 Preliminary
Part 2 Direction
1. Name
5. Object
This Direction is the Aboriginal and Torres Strait 
(1) The object of this Direction is to give guidance to the 
Islander Land and Sea Future Fund Investment Mandate 
Board in relation to its investment strategy for the Fund. 
Direction 2019.
(2) The Board must seek to maximise the return earned on 
2. Commencement
the Fund over the long term, consistent with international 
best practice for institutional investment, pursuant to 
This Direction commences on the 15th day after it is 
section 33 of the Act, and subject to its obligations under 
given to the Board.
the Act and any directions given by the Responsible 
Note 1: Section 42 (disallowance) of the Legislation Act 2003 does 
Ministers under subsection 32(1) of the Act. 
not apply to the direction — see regulations made for the purposes of 
(3) This Direction is given under subsection 32(1) of the 
paragraph 44(2)(b) of that Act.
Act to articulate the Government’s expectations for how 
Note 2: Part 4 of Chapter 3 (sunsetting) of the Legislation Act 2003 does 
the Fund will be invested and managed by the Board. This 
not apply to the direction — see regulations made for the purposes of 
sets out matters of risk and return for the Fund.
paragraph 54(2)(b) of that Act.
3. Authority
6. Benchmark return and acceptable level 
of risk
This Direction is made under the Aboriginal and Torres 
Strait Islander Land and Sea Future Fund Act 2018.
(1) The Board is to adopt an average return over the long 
term of at least the Consumer Price Index + 2.0 to + 3.0 
4. Definitions
per cent per annum, net of costs, as the benchmark 
return on the Fund.
In this Direction:
(2) During the initial transition period, as the Board 
Act means the Aboriginal and Torres Strait Islander Land 
develops a long-term strategic asset allocation, 
and Sea Future Fund Act 2018.
the Government anticipates a return lower than the 
Board means the Future Fund Board of Guardians 
benchmark return.
established by section 34 of the Future Fund Act 2006.
Acceptable level of risk
Consumer Price Index means the All Groups Consumer 
(1) In constructing a portfolio, the Board:
Price Index number, being the weighted average of the 
8 capital cities, published by the Australian Bureau of 
(a) must determine an acceptable but not excessive 
Statistics.
level of risk for the Fund, including having regard 
to the plausible capital loss from investment 
Fund means the Aboriginal and Torres Strait Islander Land 
returns over the forward three-year period; and
and Sea Future Fund established by the Act.
(b) must have regard to its obligations under section 
Future Fund Act means the Future Fund Act 2006.
17 of the Act.
ILSC means the Indigenous Land and Sea Corporation 
(2) The Government acknowledges that targeting the 
established by section 191A of the Aboriginal and Torres 
long-term benchmark return implies accepting the 
Strait Islander Act 2005.
risk of capital losses, in adverse markets, that may be 
Responsible Ministers has the same meaning as 
15-20 per cent of the portfolio over a three-year period.
in the Act.

---

177
7. Board must consider impacts from its 
08
investment strategy
an Re
d f
(1) In undertaking its investment activities, the Board 
 in ere
de
must act in a way that:
nc
x es
(a) minimises the potential to effect any abnormal 
 
change in the volatility or efficient operation of 
Australian financial markets; and
(b) is unlikely to cause any diminution of the 
f I
u n
Australian Government’s reputation in Australian 
t v
u e
and international financial markets.
r s
e g tin
e g f
n
8. Corporate governance
e o
r r t
ati h
(1) The Board must have regard to international best 
o e b
ns o
practice for institutional investment in determining 
en
f A e
its approach to corporate governance principles, 
fi
u t o
including in relation to its voting policy.
st f 
ra  
lia
9. Reporting
ns
The Board must publish quarterly portfolio updates on its 
website showing:
(a) actual returns against benchmark return; and
2 A
(b) asset allocations by category.
0 n
1 n
8 u
-2 a
0 l R
19 eport  

---

178
DisabilityCare Australia Fund Investment Mandate Directions 20141
Part 1 Preliminary
(3) These Directions are given under subsection 29(1) of 
the Act to articulate the Government’s expectations 
1. Name of Directions
for how the Fund will be invested and managed by 
the Board. 
These Directions are the DisabilityCare Australia Fund 
Investment Mandate Directions 2014.
(4) The responsible Ministers may review these 
Directions, in consultation with the Board, including 
2. Commencement
after any request by the Board in the context of any 
material changes to either the prevailing investment 
These Directions commence on the 15th day after they 
conditions or the cashflow position of the Fund.
are given.
Note: Section 42 of the Legislative Instruments Act 2003 (which deals 
Part 2 Directions
with the disallowance of legislative instruments) does not apply to this 
instrument: see section 44 of that Act. Part 6 of that Act (which deals 
5. Investment Objectives
with the sunsetting of legislative instruments) does not apply to this 
instrument: see section 54 of that Act. 
(1) The Board should invest in such a way as to 
minimise the probability of capital losses over a  
3. Definitions
12 month horizon.
In these Directions:
(2) Subject to the Board’s obligations under section 23 
Act means the DisabilityCare Australia Fund Act 2013.
of the Act and to (1) above, the Board is to adopt a 
benchmark return on the Fund of the Australian three 
Board means the Future Fund Board of Guardians.
month bank bill swap rate + 0.3 per cent per annum, 
Fund means the DisabilityCare Australia Fund.
calculated on a rolling 12-month basis (net of fees).
Responsible Ministers has the same meaning as 
6. The Board must consider impacts from its 
in the Act.
investment strategy
4. Object of these Directions
In undertaking its investment activities, the Board must 
act in a way that:
(1) The DisabilityCare Australia Fund is a financing 
source to enhance the Commonwealth’s ability 
(1) minimises the potential to effect any abnormal 
to reimburse the States and Territories and the 
change in the volatility or efficient operation of 
Commonwealth for the expenditure incurred in 
Australian financial markets; and
relation to the National Disability Insurance Scheme 
(2) is unlikely to cause any diminution of the 
Act 2013.
Commonwealth Government’s reputation in Australian 
(2) The object of these Directions is to give guidance to 
and international financial markets.
the Board in relation to its investment strategy for 
the Fund. The Board is required by the Act to seek to 
maximise the return earned on the Fund, consistent 
with international best practice for institutional 
investment, subject to its obligations under the Act 
and any directions given by the responsible Ministers 
under the Act.
Note:
1.  All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the  
Legislative Instruments Act 2003. See www.frli.gov.au.

---

179
Building Australia Fund Investment Mandate Directions 20091
Part 1 Preliminary
(3) These Directions are given under subsection 35 (1) 
08
of the Act to articulate the Australian Government’s 
an R
expectations of how the Fund will be invested and 
e
1. Name of Directions
d f
 in e
managed by the Board.
re
de
These Directions are the Building Australia Fund 
nc
(4) The responsible Ministers may review these 
x es
Investment Mandate Directions 2009.
Directions, including the benchmark return, in 
 
2. Commencement
consultation with the Board. The first review is 
expected to occur before 1 July 2010.
These Directions commence on the 15th day after they 
are given.
f I
u n
t v
u e
Note: Section 42 of the Legislative Instruments Act 2003 (which deals 
r s
e g
Part 2 Directions
t
with the disallowance of legislative instruments) does not apply to this 
in
e g f
instrument: see section 44 of that Act. Part 6 of that Act (which deals 
ne o
with the sunsetting of legislative instruments) does not apply to this 
5. Benchmark return
r r t
a
instrument: see section 54 of that Act. 
ti h
o e b
(1) The Board is to adopt a benchmark return on the Fund 
ns o e
of the Australian three month bank bill swap rate + 0.3 
n
3. Definitions
f A e
per cent per annum, calculated on a rolling 12 month 
fi
u t o
In these Directions:
s
basis (net of fees).
t f 
ra  
l
Act means the Nation-building Funds Act 2008.
ia
(2) In targeting this benchmark return, the Board should 
ns
Board means the Future Fund Board of Guardians.
invest in such a way as to minimise the probability of 
capital losses over a 12 month horizon.
Fund means the Building Australia Fund.
responsible Ministers has the same meaning as 
6. Board must consider impacts from its 
in the Act.
investment strategy
2 A
0 n
1 n
In undertaking its investment activities, the Board must 
8 u
-2 a
4. Object of these Directions
act in a way that:
0 l R
19 ep
(1) The Building Australia Fund is a financing source 
(a) minimises the potential to effect any abnormal change 
or
to enhance the Commonwealth’s ability to make 
t 
in the volatility or efficient operation of Australian 
 
payments in relation to the creation or development 
financial markets; and
of transport, communications, energy and water 
infrastructure, and eligible national broadband 
(b) is unlikely to cause any diminution of the Australian 
network matters.
Government’s reputation in Australian and 
international financial markets.
(2) The object of these Directions is to give guidance to 
the Board in relation to its investment strategy for 
the Fund. The Board is required by the Act to seek to 
maximise the return earned on the Fund, consistent 
with international best practice for institutional 
investment and subject to its obligations under the 
Act and any directions given by the responsible 
Ministers under the Act.
Note:
1.  All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the  
Legislative Instruments Act 2003. See www.frli.gov.au.

---

180
Education Investment Fund Investment Mandate Directions 20091
Part 1 Preliminary
(3) These Directions are given under subsection 154 (1) 
of the Act to articulate the Australian Government’s 
1. Name of Directions
expectations of how the Fund will be invested and 
managed by the Board.
These Directions are the Education Investment Fund 
Investment Mandate Directions 2009.
(4) The responsible Ministers may review these 
Directions, including the benchmark return, in 
2. Commencement
consultation with the Board. The first review is 
expected to occur before 1 July 2010.
These Directions commence on the 15th day after they 
are given.
Note: Section 42 of the Legislative Instruments Act 2003 (which deals 
Part 2 Directions
with the disallowance of legislative instruments) does not apply to this 
instrument: see section 44 of that Act. Part 6 of that Act (which deals 
with the sunsetting of legislative instruments) does not apply to this 
5. Benchmark return
instrument: see section 54 of that Act.
(1) The Board is to adopt a benchmark return on the Fund 
3. Definitions
of the Australian three month bank bill swap rate + 0.3 
per cent per annum, calculated on a rolling 12 month 
In these Directions:
basis (net of fees). 
Act means the Nation-building Funds Act 2008.
(2) In targeting this benchmark return, the Board should 
Board means the Future Fund Board of Guardians.
invest in such a way as to minimise the probability of 
capital losses over a 12 month horizon.
Fund means the Education Investment Fund.
responsible Ministers has the same meaning as 
6. Board must consider impacts from its 
in the Act.
investment strategy
In undertaking its investment activities, the Board must 
4. Object of these Directions
act in a way that:
(1) The Education Investment Fund is a financing source 
(a) minimises the potential to effect any abnormal 
to enhance the Commonwealth’s ability to make 
change in the volatility or efficient operation of 
payments in relation to the creation or development of 
Australian financial markets; and
higher education, research, vocational education and 
training and eligible education infrastructure, and to 
(b) is unlikely to cause any diminution of the Australian 
make transitional Higher Education Endowment Fund 
Government’s reputation in Australian and 
payments.
international financial markets.
(2) The object of these Directions is to give guidance to 
the Board in relation to its investment strategy for 
the Fund. The Board is required by the Act to seek to 
maximise the return earned on the Fund, consistent 
with international best practice for institutional 
investment and subject to its obligations under the 
Act and any directions given by the responsible 
Ministers under the Act.
Note:
1.  All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the  
Legislative Instruments Act 2003. See www.frli.gov.au.

---

Appendix C
181
List of Requirements
This list of requirements is provided as a checklist against the requirements detailed in Resource Management Guide No. 
135. ‘Annual reports for non-corporate Commonwealth entities’, in line with reporting requirements under 17AJ(d) of the 
PGPA rule.
PGPA Rule Reference
Part of Report
Description
Requirement
08
an R
17AD(g)
Letter of transmittal
e
d f
 in e
17AI
P03
A copy of the letter of transmittal signed and 
Mandatory
re
de n
dated by accountable authority on date final text 
c
x es
approved, with statement that the report has been 
 
prepared in accordance with section 46 of the 
Act and any enabling legislation that specifies 
additional requirements in relation to the annual 
report.
f I
u n
t v
u e
17AD(h)
Aids to access
r s
e g tin
e g f
17AJ(a)
P01
Table of contents.
Mandatory
ne o
r r t
a
17AJ(b)
P188-191
Alphabetical index.
Mandatory
ti h
o e b
n
17AJ(c)
P187
Glossary of abbreviations and acronyms.
Mandatory
s o en
f A e
17AJ(d)
P181-186
List of requirements.
Mandatory
fi
u t o
s
17AJ(e)
Inside front cover
Details of contact officer.
Mandatory
t f 
ra  
li
17AJ(f)
Inside front cover
Entity’s website address.
Mandatory
ans
17AJ(g)
Inside front cover
Electronic address of report.
Mandatory
17AD(a)
Review by accountable authority
17AD(a)
P06-07
A review by the accountable authority of the entity. Mandatory
17AD(b)
Overview of the entity
2 A
0 n
1 n
8 u
17AE(1)(a)(i)
P10-15
A description of the role and functions of the entity. Mandatory
-2 a
0 l R
1
17AE(1)(a)(i )
P70-80
A description of the organisational structure of the 
Mandatory
9 ep
entity.
ort  
17AE(1)(a)(i i)
P10-15, P32-69
A description of the outcomes and programmes 
Mandatory
administered by the entity.
17AE(1)(a)(iv)
P10-15, P166-168 A description of the purposes of the entity as 
Mandatory
included in corporate plan.
17AE(1)(aa)(i)
P77
Name of the accountable authority or each member  Mandatory
of the accountable authority.
17AE(1)(aa)(i )
P77
Position title of the accountable authority or each 
Mandatory
member of the accountable authority.
17AE(1)(aa)(i i)
P77
Period as the accountable authority or member 
Mandatory
of the accountable authority within the reporting 
period.
17AE(1)(b)
Not applicable
An outline of the structure of the portfolio of the 
Portfolio 
entity.
departments 
– mandatory

---

182
PGPA Rule Reference
Part of Report
Description
Requirement
17AE(2)
Not applicable
Where the outcomes and programs administered 
If applicable, 
by the entity differ from any Portfolio Budget 
Mandatory
Statement, Portfolio Additional Estimates 
Statement or other portfolio estimates statement 
that was prepared for the entity for the period, 
include details of variation and reasons for change.
17AD(c)
Report on the Performance of the entity
17AD(c)(i); 16F
P166-168
Annual performance statement in accordance with  Mandatory
paragraph 39(1)(b) of the Act and section 16F of 
the Rule.
17AD(c)(i )
Report on Financial Performance
17AF(1)(a)
P32-69
A discussion and analysis of the entity’s financial 
Mandatory
performance.
17AF(1)(b)
P164
A table summarising the total resources and total 
Mandatory
payments of the entity.
17AF(2)
Not applicable
If there may be significant changes in the financial  If applicable, 
results during or after the previous or current 
Mandatory
reporting period, information on those changes, 
including: the cause of any operating loss of the 
entity; how the entity has responded to the loss 
and the actions that have been taken in relation 
to the loss; and any matter or circumstances 
that it can reasonably be anticipated will have a 
significant impact on the entity’s future operation 
or financial results.
17AD(d)
Management and Accountability
Corporate Governance
17AG(2)(a)
P81
Information on compliance with section 10 
Mandatory
(fraud systems).
17AG(2)(b)(i)
P03
A certification by accountable authority that fraud 
Mandatory
risk assessments and fraud control plans have 
been prepared.
17AG(2)(b)(i )
P03
A certification by accountable authority that 
Mandatory
appropriate mechanisms for preventing, detecting 
incidents of, investigating or otherwise dealing 
with, and recording or reporting fraud that meet the 
specific needs of the entity are in place.
17AG(2)(b)(i i)
P03
A certification by accountable authority that all 
Mandatory
reasonable measures have been taken to deal 
appropriately with fraud relating to the entity.

---

183
PGPA Rule Reference
Part of Report
Description
Requirement
17AG(2)(c)
P70-81
An outline of structures and processes in place for  Mandatory
08
the entity to implement principles and objectives of 
an Re
corporate governance.
d f
 in ere
17AG(2)(d) – (e)
Not applicable
A statement of significant issues reported to 
If applicable, 
de nc
x es
Minister under paragraph 19(1)(e) of the Act that 
Mandatory
 
relates to non compliance with Finance law and 
action taken to remedy non-compliance.
External Scrutiny
17AG(3)
P70-81
Information on the most significant developments 
Mandatory
f I
u n
t v
in external scrutiny and the entity’s response to 
u e
r s
e g t
the scrutiny.
in
e g f
n
17AG(3)(a)
Not applicable
Information on judicial decisions and decisions 
If applicable, 
e o
r r t
a
of administrative tribunals and by the Australian 
Mandatory
ti h
o e b
Information Commissioner that may have a 
ns o e
significant effect on the operations of the entity.
n
f A efi
u t o
17AG(3)(b)
Not applicable
Information on any reports on operations of the 
If applicable, 
st f 
r
entity by the Auditor General (other than report 
Mandatory
a  
lia
under section 43 of the Act), a Parliamentary 
ns
Committee, or the Commonwealth Ombudsman.
17AG(3)(c)
Not applicable
Information on any capability reviews on the entity 
If applicable, 
that were released during the period.
Mandatory
Management of Human Resources
2 A
0 n
17AG(4)(a)
P82-85
An assessment of the entity’s effectiveness in 
Mandatory
1 n
8 u
-
managing and developing employees to achieve 
2 a
0 l R
1
entity objectives.
9 epor
17AG(4)(aa)
P86-89
Statistics on the entity’s employees on an ongoing 
Mandatory
t  
and non ongoing basis, including the following:
(a) statistics on full time employees;
(b) statistics on part time employees;
(c) statistics on gender
(d) statistics on staff location
17AG(4)(b)
P86-89
Statistics on the entity’s APS employees on an 
Mandatory
ongoing and non ongoing basis; including the 
following:
 
\
Statistics on staffing classification level;
 
\
Statistics on full time employees;
 
\
Statistics on part time employees;
 
\
Statistics on gender;
 
\
Statistics on staff location;
 
\
Statistics on employees who identify as 
Indigenous.

---

184
PGPA Rule Reference
Part of Report
Description
Requirement
17AG(4)(c)
P90
Information on any enterprise agreements, 
Mandatory
individual flexibility arrangements, Australian 
workplace agreements, common law contracts 
and determinations under subsection 24(1) of the 
Public Service Act 1999.
17AG(4)(c)(i)
P90
Information on the number of SES and non SES 
Mandatory
employees covered by agreements etc identified in 
paragraph 17AG(4)(c).
17AG(4)(c)(i )
P96
The salary ranges available for APS employees by 
Mandatory
classification level.
17AG(4)(c)(i i)
P96
A description of non salary benefits provided to 
Mandatory
employees.
17AG(4)(d)(i)
P97
Information on the number of employees at each 
If applicable, 
classification level who received performance pay.
Mandatory
17AG(4)(d)(i )
P97
Information on aggregate amounts of performance 
If applicable, 
pay at each classification level.
Mandatory
17AG(4)(d)(i i)
P97
Information on the average amount of performance 
If applicable, 
payment, and range of such payments, at each 
Mandatory
classification level.
17AG(4)(d)(iv)
P97
Information on aggregate amount of performance 
If applicable, 
payments.
Mandatory
Assets Management
17AG(5)
Not applicable
An assessment of effectiveness of assets 
If applicable, 
management where asset management is a 
mandatory
significant part of the entity’s activities.
Purchasing
17AG(6)
P164
An assessment of entity performance against the 
Mandatory
Commonwealth Procurement Rules.
Consultants
17AG(7)(a)
P164
A summary statement detailing the number of 
Mandatory
new contracts engaging consultants entered into 
during the period; the total actual expenditure 
on all new consultancy contracts entered into 
during the period (inclusive of GST); the number of 
ongoing consultancy contracts that were entered 
into during a previous reporting period; and the 
total actual expenditure in the reporting year on the 
ongoing consultancy contracts (inclusive of GST).

---

185
PGPA Rule Reference
Part of Report
Description
Requirement
17AG(7)(b)
P164
A statement that “During [reporting period], 
Mandatory
08
[specified number] new consultancy contracts 
an Re
d f
were entered into involving total actual expenditure 
 in ere
of $[specified million]. In addition, [specified 
de nc
x
number] ongoing consultancy contracts were 
es
 
active during the period, involving total actual 
expenditure of $[specified million].”
17AG(7)(c)
P164
A summary of the policies and procedures for 
Mandatory
selecting and engaging consultants and the main 
f I
u n
categories of purposes for which consultants were 
t v
u e
r s
selected and engaged.
e g tin
e g f
17AG(7)(d)
P164
A statement that “Annual reports contain 
Mandatory
ne o
information about actual expenditure on contracts 
r r t
ati h
for consultancies. Information on the value of 
o e b
ns o
contracts and consultancies is available on the 
en
f A e
AusTender website.”
fi
u t o
s
Australian National Audit Office Access Clauses
t f 
ra  
li
17AG(8)
Not applicable
If an entity entered into a contract with a value of 
If applicable, 
ans
more than $100 000 (inclusive of GST) and the 
Mandatory
contract did not provide the Auditor General with 
access to the contractor’s premises, the report must 
include the name of the contractor, purpose and 
value of the contract, and the reason why a clause 
2 A
0 n
allowing access was not included in the contract.
1 n
8 u
-2 a
Exempt contracts
0 l R
19 ep
17AG(9)
P164
If an entity entered into a contract or there is a 
If applicable, 
or
standing offer with a value greater than $10 000 
Mandatory
t  
(inclusive of GST) which has been exempted from 
being published in AusTender because it would 
disclose exempt matters under the FOI Act, the 
annual report must include a statement that the 
contract or standing offer has been exempted, 
and the value of the contract or standing offer, to 
the extent that doing so does not disclose the 
exempt matters.
Small business
17AG(10)(a)
P164
A statement that “[Name of entity] supports small 
Mandatory
business participation in the Commonwealth 
Government procurement market. Small and 
Medium Enterprises (SME) and Small Enterprise 
participation statistics are available on the 
Department of Finance’s website.”

---

186
PGPA Rule Reference
Part of Report
Description
Requirement
17AG(10)(b)
P164
An outline of the ways in which the procurement 
Mandatory
practices of the entity support small and medium 
enterprises.
17AG(10)(c)
Not applicable
If the entity is considered by the Department 
If applicable, 
administered by the Finance Minister as material 
Mandatory
in nature—a statement that “[Name of entity] 
recognises the importance of ensuring that small 
businesses are paid on time. The results of the 
Survey of Australian Government Payments to Small 
Business are available on the Treasury’s website.”
Financial Statements
17AD(e)
P98-162
Inclusion of the annual financial statements in 
Mandatory
accordance with subsection 43(4) of the Act.
Executive Remuneration
17AD(da)
P90-95
Information about executive remuneration in 
Mandatory
accordance with Subdivision C of Division 3A of 
Part 2-3 of the Rule.
17AD(f)
Other Mandatory Information
17AH(1)(a)(i)
Not applicable
If the entity conducted advertising campaigns, 
If applicable, 
a statement that “During [reporting period], 
Mandatory
the [name of entity] conducted the following 
advertising campaigns: [name of advertising 
campaigns undertaken]. Further information 
on those advertising campaigns is available at 
[address of entity’s website] and in the reports on 
Australian Government advertising prepared by the 
Department of Finance. Those reports are available 
on the Department of Finance’s website.”
17AH(1)(a)(i )
P165
If the entity did not conduct advertising campaigns,  If applicable, 
a statement to that effect.
Mandatory
17AH(1)(b)
P165
A statement that “Information on grants awarded 
If applicable, 
by [name of entity] during [reporting period] is 
Mandatory
available at [address of entity’s website].”
17AH(1)(c)
P165
Outline of mechanisms of disability reporting, 
Mandatory
including reference to website for further 
information.
17AH(1)(d)
P165
Website reference to where the entity’s Information  Mandatory
Publication Scheme statement pursuant to Part II 
of FOI Act can be found.
17AH(1)(e)
Not applicable
Correction of material errors in previous annual 
If applicable, 
report.
mandatory
17AH(2)
P32-67
Information required by other legislation.
Mandatory

---

Appendix D
187
Glossary of abbreviations and acronyms
AASB
Australian Accounting Standards Board
AC
Companion of the Order of Australia
08
an R
ANAO
Australian National Audit Office
e
d f
 in ere
AO
Officer of the Order of Australia
de nc
x es
APS
Australian Public Service
 
ATO
Australian Taxation Office
CPI
Consumer Price Index
EEE
Equivalent Equity Exposure
f I
u n
t v
ESG
Environmental, social and governance (risk management)
u e
r s
e g ti
FFIC
Future Fund Investment Company
n
e g f
ne o
FFMA
Future Fund Management Agency
r r t
ati h
FoI Act
Freedom of Information Act 1982
o e b
ns o e
GST
Goods and Services Tax
n
f A efi
IFSWF
International Forum of Sovereign Wealth Funds
u t o
st f 
ra  
KMP
Key Management Personnel
lian
MRFFIC
Medical Research Future Fund Investment Company
s
OECD
Organisation for Economic Co-operation and Development
PGPA Act
Public Governance, Performance and Accountability Act 2013
SWF
Sovereign wealth fund
2 A
0 n
1 n
8 u
-2 a
0 l R
19 eport  

---

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Index
A
C
Aboriginal and Torres Strait Islander Land and Sea Future 
Carne, Sarah  21
Fund Act 2018  11, 70, 110, 161, 176
Cash  19, 25, 43, 51, 55, 61, 63, 64, 65, 66, 67, 68, 105, 106, 
Advertising  164, 165
109, 113, 126, 134, 137, 138, 141, 142, 153, 156, 161, 167, 
173, 175
Alternatives  34, 40, 41, 51, 54, 173
Cash flow  05, 27, 34, 38, 43, 46, 51, 54, 61, 63, 64, 66, 
Annual performance statement  166, 182
109, 134
Arndt, Raphael  09, 21, 32, 78, 91, 92, 93
Commonwealth Procurement Rules  164, 184
Asset Review Committee  21, 25
Compliance  25, 75, 81, 83
Audit & Risk Committee  75, 76, 81
Conflicts Committee  75, 76
Australian dollar(s)  25, 44, 48, 59, 118, 119, 127, 128, 
Consultants  26, 50, 60, 62, 65, 69, 164
129, 130, 143
Consumer Price Index (CPI)  11, 34, 35, 37, 61, 167, 174, 
Australian Government  11, 12, 25, 35, 48, 52, 59, 61, 63, 
176
65, 67, 71, 74
Contributions  05, 11, 34, 51, 52, 61, 63, 64, 65, 66, 71, 82, 
B
96, 105, 107, 109, 132
Brake, Sue  09, 21, 83
Corporate Plan  166, 167, 168
Board of Guardians  2, 03, 06, 07, 09, 10, 11, 61, 63, 67, 72, 
Costello, Peter  03, 07, 72, 75, 76, 77, 91, 93, 166
75, 76, 77, 91, 98, 99, 101, 103, 110, 115, 166, 170, 174, 175, 
Costs  11, 24, 41, 48, 49, 50, 54, 59, 60, 62, 65, 68
176, 178, 179, 180, 188
Currency  25, 48, 59, 124, 127, 128, 129, 130, 137, 138, 141, 
Business strategy  13, 14, 15, 92
142, 145
Cyber security  81
D
Debt  19, 34, 42, 43, 51, 55, 127, 128, 129, 130, 172
Department of Finance  71, 161, 164, 185, 186
Developed markets  33, 40, 43, 44, 46, 53
Direct cost ratio  49, 50, 59, 60, 62, 65, 68, 69
Direct costs  49, 50, 59, 60, 62, 65, 68, 69
DisabilityCare Australia Fund Act 2013  12, 70, 110, 
161, 178
Disruption  27, 28, 45
Drawdown(s)  10, 11

---

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E
G
Earnings  05, 06, 25, 27, 34, 39, 48, 51, 61, 63, 66, 105, 107, 
Geography  09, 26, 34, 51, 145, 146
08
an R
122, 145, 151
e
George, David  09, 21
d f
 in ere
Emerging market(s)  19, 43, 48, 59
de
Governance  2, 07, 24, 26, 29, 30, 70, 71, 72, 73, 74, 79, 80, 
nc
x es
Employee(s)  14, 31, 83, 84, 86-89, 90, 97, 111, 116, 131, 
165, 174, 175, 177, 183, 187
 
134, 135
GST  106, 108, 118, 159, 164, 184, 185, 187
Equities  21, 40, 53, 78, 127, 128, 129, 130, 154, 155, 157, 
158, 170
H
f I
Environmental, social and governance (ESG)  26, 27, 28, 
u n
Hedged  25
t v
u e
30, 31, 165, 187
r s
e g t
Hedge fund(s)  28, 41, 49
in
e g f
Expenses  70, 71, 104, 106, 111, 116, 117, 118, 120, 131, 
ne o
r
136, 159, 162
r t
a
I
ti h
o e b
n
Illiquidity  24, 44
s o e
F
n
f A efi
Fees  11, 24, 41, 45, 49, 54, 60, 91, 104, 106, 120, 131, 161, 
Infrastructure  12, 13, 19, 26, 27, 28, 43, 44, 45, 56, 73, 78, 
u t o
s
114, 146, 160, 163, 166, 179, 180
t f 
167, 175, 178, 179, 180
ra  
lia
International Forum of Sovereign Wealth Funds  31, 71, 
n
Financial statements  03, 49, 71, 98, 103, 109, 110, 111, 
s
112, 113, 114, 115, 116, 117, 118, 120, 134, 149, 152, 159, 
187
161, 162, 186
Investment beliefs  24
Flaherty, Erin  73, 75, 76, 91, 93
Investment Committee  21, 26, 78, 81
2 A
Flexible work arrangements  84
0
Investment manager(s)  21, 25, 30, 132
n
1 n
8 u
-
Fraser, John  07, 73, 75, 76, 91, 93
2 a
Investment Mandate Directions  167, 174-180
0 l R
19 e
Fraud  03, 81
p
Investment policies  146
ort 
Freedom of Information  165, 187
 
Investment strategy  06, 18, 24, 26, 45, 49, 52, 59, 61, 62, 
Future Drought Fund  07, 12, 67
65, 68, 77, 110, 145, 168, 174, 175, 176, 177, 178, 179, 180
Future Fund Act 2006  03, 25, 26, 50, 60, 62, 65, 69, 70, 
J
91, 110, 119, 159, 160, 166, 174, 176
Joined-up  19
Future Fund Management Agency  2, 03, 07, 09, 10, 77, 96, 
97, 98, 103, 110, 164, 166, 187

---

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K
O
Kay, Carolyn  73, 75, 76, 91, 93
OECD  25, 187
Key Management Personnel  91, 92, 93, 135, 187
Operational Risk & Compliance Committee  81
Kvarnskog, Björn  21
Overlays  19
L
P
Large, Richard  09, 17, 23, 78, 83, 91, 92, 93
Performance related pay  90, 91, 92, 97
Legislation  10, 11, 70, 71, 75, 166, 181, 186
Portfolio Budget Statements  71, 162, 166, 167, 168
Liquidity  08, 24, 25, 45, 48, 59, 64, 67, 111, 126, 136, 146
Poynton, John  07, 74, 75, 76, 91, 93
Listed equities  19, 30, 40, 53, 121, 123, 141, 142, 153, 156
Price, Cameron  79, 91, 92, 93
Look-through costs  49, 50, 60
Private equity  19, 28, 47, 49, 58, 170
M
Private markets  09, 18, 19, 31
Property  26, 27, 28, 43, 45, 46, 57, 171
Management Committee  77, 81, 90, 91, 92
Public Governance, Performance and Accountability Act 
Manager Review Committee  21, 25
2013  03, 70, 103, 110, 112, 166, 187
Mann, Paul  78, 91, 92, 93
Public Service Act 1999  77, 85, 110, 184
McKellar, Gordon  79, 91, 92, 93
R
McPherson, Elizabeth  79, 91, 92, 93
Remuneration  31, 50, 60, 62, 65, 69, 75, 90, 92, 93, 94, 96, 
Medical Research Future Fund Act 2015  11, 70, 110, 
97, 104, 116, 120, 135, 159, 186
161, 175
Remuneration & Nominations Committee  75, 90
Minister for Finance  71, 72, 103, 111, 166
Remuneration Report  29, 90-97
Murray, Hugh  21
Reserve Bank of Australia  11, 51, 52, 73, 167, 175
mytime  84
Resource statement  163
N
Risk management  09, 26, 35, 52, 74, 80, 81, 109, 115, 
National Disability Insurance Scheme  12, 13, 64, 178
136-158
National Disability Insurance Scheme Act 2013  178
S
Nation-building Funds Act 2008  12, 70, 110, 161, 179, 
Santiago Principles  71
180
Sharpe ratio  48
Neal, David  07, 09, 21, 77, 91, 92, 93
Sovereign wealth fund  10, 17, 37, 71, 112, 166, 187
Norris, Wendy  09, 21
Superannuation liabilities  110, 116, 160, 163, 166

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Tax(es)  25
08
an Re
Taxation  115, 117, 118, 136, 150, 187
d f
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de
Timberland  44, 45, 172
nc
x es
Treasurer  72, 135, 166
 
V
Venture capital  28, 38, 47, 58, 145
f I
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t v
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Volatility  32, 33, 41, 42, 43, 44, 48, 49, 52, 54, 59, 174, 
e
r s
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175, 177, 178, 179, 180
in
e g f
ne o
Voting  21, 28, 29, 30, 31, 174, 175, 177
r r t
ati h
o e b
Voting principles  28, 29
ns o enf Aefi
W
u t o
st f 
r
Wachtel, Michael  74, 75, 76, 91, 93
a  
lian
Wilson, Jane  74, 75, 76, 91, 93
s
Withdrawals  05, 11, 34, 51, 61, 63, 64, 66
Workforce  83, 84, 85
Work, health and safety  84
2 A
0 n
1 n
8 u
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19 eport  

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194
futurefund.gov.au

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Document Outline

• Sweeney - FOI - Final Decision letter - FULLY EXECUTED - 030720
• Future Fund 2018-19 Annual Report

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