About one-quarter of the Future Fund’s $340 billion portfolio is exposed to artificial intelligence in a meaningful way. So it might surprise taxpayers that chief executive Raphael Arndt is happy to concede that it’s nigh on impossible for long-term investors to pick the winners and losers from what he describes as “certainly, the most significant technological development of a generation, perhaps longer”.But for Arndt, this is exactly the point. Rather than trying to pick winners, the Future Fund has embarked on an ambitious project to map the AI ecosystem in an attempt to build a framework that Australia’s sovereign wealth fund can use to identify where and how value will be created in the AI revolution, what macroeconomic forces could shape returns over time, and how AI investment opportunities will change.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
25pc of Future Fund is tied to AI. Here’s its plan to ride the boom
The $340 billion sovereign wealth fund is heavily exposed to the AI trade. But it knows it can’t pick winners and losers, and so is looking to a different approach.
TL;DRAI
Australia's Future Fund ($340B, 25% AI) accepts picking AI winners is nearly impossible, so it's mapping the ecosystem to identify value creation. For tech leaders: portfolio-wide AI diversification beats individual bets as macro forces reshape returns.
152 words~1 min read
