Future Fund Appoints CIO, Looks to Grow Investment Team

Raphael Arndt takes over from David Neal as CIO of Australian public sector pension.

Australia’s $101 billion Future Fund has promoted Raphael Arndt to CIO and is seeking to grow its investment team with two appointments.

Arndt has worked at the Future Fund—which manages assets for the Australian public sector pension—since 2008 as head of infrastructure and timberland. In a statement, the Future Fund said he would begin his new role immediately.

Arndt succeeds David Neal, who was appointed CEO earlier this year. Before joining the Future Fund, Arndt worked at Melbourne-based infrastructure specialist Hastings Funds Management. He has also held a policy role at the Australian Council for Infrastructure Development.

The promotion of Arndt, an engineer by training and a specialist in infrastructure, highlights the Future Fund’s desire to boost its exposure to real assets to nearly 20% of the portfolio.

Neal said the new CIO “has the commercial and leadership skills to help us refine our investment thinking and processes. He is the ideal person to foster the collaboration and contest of ideas that is central to our investment process.”

Meanwhile Stephen Gilmore, head of investment strategy, is to take on responsibility for managing and monitoring risk in the portfolio, alongside his existing role that involves a focus on portfolio design and macroeconomic research. He joined the fund in 2009 and was appointed to his current role in 2010. He has worked at AIG, Morgan Stanley, the International Monetary Fund, and the Reserve Bank of New Zealand.

The Future Fund is on the hunt for an additional risk management role “to provide further depth and focus in our investment risk management and reporting capabilities”, Neal said.

Barry Brakey, head of property, is in charge of the infrastructure and timberland team while the fund seeks a permanent replacement for Arndt.

The appointment follows the hire of Joel Posters as head of environmental, social, and governance risk management in May.

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