Australia’s Future Fund Chief Executive Officer Raphael Arndt will step down at the end of the year after six years in the role, marking the departure of the longest-serving CEO in the sovereign wealth fund’s 20-year history.
Future Fund chair Greg Combet announced the leadership transition on Wednesday, but did not name a successor. Arndt is expected to return to the private sector following his departure, as per media reports.
“I leave the Future Fund with a highly capable leadership team that is supported by a strong board,” Arndt said.
Arndt joined the fund’s senior leadership as chief investment officer, a position he held for six years before becoming CEO. His tenure as chief executive has coincided with a period of strong investment performance and continued growth in the fund’s asset base.
Future Fund reports strong returns
The leadership change comes as the Future Fund reported a 14.8% return for the year ended June 30, significantly above its government-mandated target of 8% and ahead of the 12.2% return recorded a year earlier.
The fund’s total assets increased to A$356 billion at the end of June, up from A$337.2 billion three months earlier. Its investments in Australian equities also rose during the quarter, reaching A$30.4 billion compared with A$28.7 billion previously.
The latest results underline the financial strength of the fund as it prepares for a change at the top.
Search for successor begins
Combet has yet to announce who will succeed Arndt as CEO. The appointment will be closely watched as the Future Fund enters its next phase under new leadership.
Established in 2006, the Future Fund is Australia’s sovereign wealth fund and manages investments on behalf of the Australian government. Arndt’s departure will bring an end to one of the longest CEO tenures in the organisation’s history.