Two Aussie insto investors ace global governance test

Future Fund and Rest have achieved a perfect score on the 2026 assessment of Governance, Sustainability and Resilience (GSR) practices among global sovereign investors.

The Global SWF GSR scoreboard measures best practices among state-owned investors around the world.

Future Fund Management Agency chief executive Raphael Arndt said: "This recognition reflects our ongoing disciplined and joined-up approach to long-term investing, and our increased focus on responsible investment."

"As we mark our 20-year anniversary in 2026, it highlights our sustained focus on building a resilient, diversified portfolio that delivers returns for the benefit of future generations of Australians," he added.

La Caisse, Ontario Teachers' and BCI in North America; Norges Bank Investment Management; Nigeria Sovereign Investment Authority; Temasek in Singapore; and NZ Super were among other investors who also achieved a perfect score.

"We are very satisfied with the increasing response and accountability of sovereign investors, which recognize the importance of adopting best practices and embracing change and evolution," Global SWF founder and managing director Diego López said.

"This year, the nine perfect scorers from around the world demonstrated robustness and hardiness, in the context of geopolitical uncertainty and market volatility."

Global SWF noted the best results are found in institutions from Oceania, followed by Europe and North America. Asian funds just pass the test, while Middle Eastern, African and Latin American investors have averages below 50%.

It also found two-thirds of the assessed funds are already adopting and investing in artificial intelligence; and half of those, reported their first interaction with AI during the past 12 months.

While the average GSR score of all 200 funds slightly increased to 60% and sustainability and resilience scores improved, governance including transparency stayed flat.

Out of the 25 different elements on which funds are measured, three were modified to account for the increasing importance of relative financial performance, carbon emission statements, and adoption as well as investment in AI.