Future Fund approaches $118 billion

The Future Fund grew by a further $600 million during the September quarter to $117.8 billion, but its chairman warns of lower returns ahead.

The Future Fund managed to grow by a further $600 million during a September quarter dominated by volatility across financial markets.

The fund's holdings of $117.8 billion have doubled since its inception in 2006, helped by a return of 12.8 per cent in the past year.

However, fund chairman Peter Costello continues to warn future returns are expected to be lower.