The Future Fund returned 11.7 per cent over the last 12 months, March, growing to a record $269.1 billion and shrugging off a turbulent March quarter shaped by the Iran conflict and stagflation fears.

CEO Raphael Arndt said in a statement that both the 11.7 per cent return and a 10-year 8.6 per cent pa return were both “well above [the Future Fund’s] mandate target.”

 “While our focus is on long-term returns, our positioning has helped protect the Fund over the quarter, with the value of the fund rising modestly, even as markets fell based on inflation concerns stemming from the closure of the Strait of Hormuz and the potential for a stagflationary global environment,” Arndt said.

“Over the year, risk markets were supportive but there was a significant change of sentiment in the March quarter. The portfolio result reflects the strong performance of risk markets and our neutral risk position, and the resilience measures we have built as set out in our discussion papers.”

The result comes as the Future Fund appoints a new chief investment officer to replace Ben Samild, who left the fund in September. Former Pendal CEO and First State Super CIO Richard Brandweiner will step into the role in June.

“We were pleased to announce the appointment of a new chief investment officer, Richard Brandweiner, who will commence on 1 July. Richard is an experienced investor and executive and has significant experience in leading investment teams to achieve their mandates. We look forward to welcoming him to the Future Fund.