Past performance is no guarantee of future success. At least that logic applies to the A$77bn ($79bn) Australian Future Fund, which has learned the hard way as returns slumped to 2.1% over the financial year to June 30, well down from the 12.4% of growth achieved a year earlier.

Mark Burgess, managing director of the Future Fund, said in a statement: "During the financial year investment markets were challenging as the situation in Europe and the US, combined with slowing growth in emerging markets, resulted in market corrections."