Australia’s Wealth Fund Says Volatile Inflation Clouds Rate Path
- Future Fund CEO Arndt outlines caution amid inflation swings
- Fund’s cash allocation increases to 8.2% of main portfolio
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The chief of Australia’s sovereign wealth fund said monetary policymakers and investors are facing a tough task navigating turbulent inflation.
While inflation “is subsiding in much of the developed world,” it remains “higher and more volatile than investors have been used to,” Future Fund Chief Executive Officer Raphael Arndt said in a portfolio update Friday. It returned 11.9% in the 12 months to Sept. 30, taking the fund’s assets under management to A$230 billion ($151 billion).