SYDNEY (Reuters) -Australia's sovereign wealth fund, the Future Fund, said on Tuesday its valuation had reached A$252 billion ($166.22 billion) as it boosted its developed markets equity investments and reduced property and credit exposures in the past year.

The fund delivered a 12.2% return in the year ended June 30, which the Future Fund said was double its government-mandated target of 6.1%.

The portfolio update for the June quarter published on Tuesday showed the Future Fund now had A$65.13 billion invested in developed markets, accounting for a quarter of the fund's total investments. It was up from A$46.83 billion at the same time in 2024.

The Future Fund's Australian equity investments stood at A$27.2 billion, up from A$23.1 billion.

Its property investment portfolio was reduced from A$12 billion to A$11.1 billion and its credit investments were worth A$22.4 billion, down from A$24.82 billion last year.

Future Fund CEO Raphael Arndt said the fund had increased the level of "structural risk" to improve returns and raised its exposure to developed market currencies and commodities, including gold.

($1 = 1.5161 Australian dollars)