Aussie sovereign wealth fund readies for lower future returns

Australia's sovereign wealth fund has enjoyed strong returns over the past few years, but there is a strong sense among its investment team that such performance cannot last – assets are perceived as overpriced and squeezing value out of international markets is becoming progressively more challenging.

However, Future Fund's flexible approach to investment means that it is well placed to cope with a change of direction. And its past returns speak for themselves (see graph). Over the past five