International Engagement

The International Forum of Sovereign Wealth Funds [External Site] (IFSWF) is a voluntary group of sovereign wealth funds (SWFs) formed in 2009 with the intent of regularly meeting and exchanging views on issues of common interest to its members.  The Future Fund Board of Guardians is an IFSWF member and Australia has the distinction of being a founding member country.

The Future Fund Board of Guardians has determined that the Future Fund and Nation-building Funds adhere to IFSWF’s definition of a SWF by being:

  • ...special purpose investment funds or arrangements, owned by the general government.
  • [c]reated by the general government for macroeconomic purposes [to] hold, manage, or administer assets to achieve financial objectives, and employ a set of investment strategies which include investing in foreign financial assets.

IFSWF has developed the Santiago Principles [External Site], which are a voluntary set of principles and practices identifying appropriate governance and accountability arrangements for SWFs, as well as prudent and sound SWF investment practices.

The Board of Guardians has implemented the Santiago Principles explicitly with regard to the Future Fund [External Site].  However, this is also relevant to the Nation-building Funds as these funds draw on the same legal, institutional, investment and risk management frameworks as the Future Fund.

The Department of Finance is also assisting the Government of Papua New Guinea in establishing its own SWFs under the Joint Understanding between Papua New Guinea and Australia on further cooperation on the PNG LNG Project. Finance is delivering on the Australian Government’s commitment to provide technical advice and capacity building to PNG Government officers working on SWF matters.

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Contact information on this page: Funds and Actuarial Branch

Last updated: 28 August 2017