The Future Fund sees rising interest rates around the world as the key risk to investment over the next few years, warning accommodative monetary policy is "unsustainable".
Interest rates rises "mechanically" have an impact on the value of assets, the fund's chief executive officer David Neal told a Senate hearing on Tuesday.
"It's possible that can be offset. If we have a very buoyant global economy that risk need not materially impair asset prices."
Earlier the fund - set up in 2006 to cover future superannuation liabilities of public servants - released an update of its portfolio for the September quarter showing it has grown to $134.5 billion.
The fund has added $74 billion since its inception and returned 7.8 per cent over the past 10 years, comfortably ahead of its mandated target which equates to 6.8 per cent.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
The mandate was from July 1 trimmed to inflation plus four to five per cent, from 4.5 to 5.5 per cent, to better cope with the present investment environment.
Meanwhile, the federal government has confirmed it will not be drawing down from the fund until 2026 rather than 2021 as initially envisaged.
In both cases, Mr Neal said the fund has not had to change its investment structure.
In August, chairman Peter Costello dismissed suggestions that given the Future Fund's success it could run as a superannuation default fund.
Since then, the former federal treasurer, who was not at Tuesday's hearing, has spruiked the idea of workers superannuation being run by a new government agency.
Quizzed on the issue, Finance Minister Mathias Cormann told the hearing he was not aware of the government considering such an agency.
