The $117 billion Future Fund has returned 20 per cent over the past 12 months and 15 per cent for the first nine months of the financial year.
In a portfolio update as at 31 March 2015, the sovereign wealth fund announced a one-year return of 19.9 per cent, which is well above its target return of 6.1 per cent.
Since 2006, Future Fund has generated investment returns of $56.5 billion on the original contributions from government which were valued at $60.5 billion at the time of transfer.
Future Fund chair Peter Costello said the fund's "patient and disciplined approach to investing for the long term has delivered well".
"Given the enormous monetary stimulus around the world, asset prices are generally fully priced and in some cases overpriced," Mr Costello said.
"We remain focused on achieving the return target while avoiding excessive risk and this is particularly important as policymakers globally adjust settings with a view to delivering sustainable growth," he said.
Future Fund managing director David Neal said strong returns from all asset classes had contributed to the total portfolio outcome.
"Looking forward, however, we are conscious that prospective returns cannot be expected to match the returns generated over recent years and we will continue our practice of only taking risk when we believe it will be appropriately rewarded," Mr Neal said.
"We are closely monitoring the economic, policy and political drivers at play globally and will continue to adjust the portfolio with the aim of generating good returns in stronger markets while providing some risk mitigation in weaker periods."