CEO of Australia’s US$255 billion sovereign wealth fund quits

Published Wed, Aug 26, 2026 · 04:27 PM

[SYDNEY] Australia has embarked on a global search to fill one of its highest-profile investment roles after the longtime head of its A$356 billion (US$255 billion) sovereign wealth fund announced his departure, adding to a string of senior exits.

Future Fund chief executive officer Raphael Arndt will step down at the end of 2026 after six years in the top job and almost two decades at the fund, according to a statement on Wednesday (Aug 26). Arndt, who previously served six years as chief investment officer, plans to return to the private sector.

The outgoing chief did not say whether he had secured a new role when asked on a call with reporters on Wednesday, but indicated he may return to Australia’s fund-management industry, where he worked earlier in his career.

“I actually think I can take the learnings that I’ve had from almost 20 years here and contribute that more broadly to the financial services and investment management industry,” Arndt said. 

Future Fund chair Greg Combet, on the same call, declined to confirm whether the fund had engaged an executive search firm to identify a new CEO, but described the process as “well advanced.” As an arm of the government, the fund typically requires staff to hold Australian citizenship, though exemptions can apply.

“It will be a global search for an Australian citizen appropriately qualified and with the appropriate sense of purpose,” Combet said. “We want to ensure that we get someone with the right values, not only the right skills and experience. But I think there should be a rich field of candidates.” Arndt’s total remuneration was A$1.7 million in the 24-25 financial year, according to the Future Fund’s annual report. 

Arndt’s exit adds to a series of changes at the top of the fund. CIO Ben Samild left last year to become chief strategist at the Abu Dhabi Investment Council, and his colleague Simon Fraser later joined him as head of derivatives. Two of the Future Fund’s most senior private-markets executives departed in March this year. 

Arndt faced questions during a parliamentary hearing in December about the fund’s culture and the number of senior staff departures. At the time, he said “there’s a story for every one of those people” who had left, but that it was something “we watch carefully.” The CEO was also questioned about travel expenses following press reports.

In April, the fund said it was reviewing 10 positions, including some investment roles, as part of a cost-cutting drive. Shortly afterward, it named Richard Brandweiner as CIO following a months-long search. The former Pendal Group CEO had spent the previous two years working as an independent director and consultant.

The Future Fund is one of Australia’s biggest investors in private markets, alongside the country’s major pension funds. About half its portfolio is invested in unlisted assets, including roughly 12 per cent in private equity and about 15 per cent in property and infrastructure, according to an update Wednesday.

The fund returned 14.8 per cent in the year through June, which Arndt attributed to its active equity, private-markets and hedge-fund investments, as well as a low allocation to bonds. It gained 7.7 per cent in the June quarter alone.

Other major sovereign funds also benefited from strong markets during the quarter. Japan’s Government Pension Investment Fund, for example, posted a record 8.2 per cent gain.

The Future Fund has also outperformed many global peers over the longer term. Its average annual return of 9 per cent over the decade through June compares with 6.3 per cent for 33 sovereign wealth funds analysed by State Street earlier this year, based on data through Dec 31.

“While it is true that the current CEO is known to be hands on and could have had a positive impact in performance, it is early to know who the successor will be,” said Diego Lopez, managing director at consultancy Global SWF, adding that the firm had generally delivered strong returns. “Traditionally at Future Fund, the CIO has become the CEO but the current CIO is still new in the job and it would seem unlikely that his promotion would be accelerated this early on.” BLOOMBERG