Australia’s Future Fund tilts to gold and active stock pickers as global risks rise

18 November 2025 | Melbourne, VIC – Australia’s sovereign wealth fund, the Future Fund, has increased its allocation to gold and expanded its use of active equity managers, positioning the A$250bn portfolio for a more volatile backdrop marked by higher-for-longer inflation, geopolitical shocks and shifting supply chains.

Key points
• Higher gold exposure: Gold is being used as a portfolio hedge against macro shocks and policy uncertainty.
• More active management: The fund is adding specialist stock-picking mandates to exploit dispersion across regions, sectors and styles, complementing its existing passive exposures.
• Selective on bonds: Preference remains for shorter-duration and flexible fixed income over traditional long-dated, fixed-rate bonds given inflation and rate risks.
• Diversification by region and factor: The portfolio mix continues to broaden beyond the US, with a focus on developed markets where liquidity and governance support active strategies.

Why it matters
The moves reflect a view that the investment environment is becoming less forgiving for static, index-heavy portfolios. Increased gold and active risk aim to cushion drawdowns while capturing idiosyncratic alpha as correlations break down and winners/losers diverge more sharply.

Comments from management
Management commentary: Future Fund CEO Raphael Arndt has cautioned that the risk of economic shocks is rising, and that the portfolio is being positioned with more resilience (via gold and diversification) and more agility (via active managers) to deal with persistent inflation and policy uncertainty.

What to watch next
• Further detail on manager appointments and regional tilts as the active program scales.
• Any updates to real assets and private markets weightings as the fund balances inflation protection with liquidity.
• Ongoing stance on duration and credit risk within fixed income as inflation data and central-bank guidance evolve.