Nation-building Funds' Investment Mandates

The Nation-building Funds Act 2008 [External Site] requires the responsible Ministers to issue Investment Mandates to the Future Fund Board of Guardians regarding the investments of the Nation-building Funds.

The Nation-building Funds’ Investment Mandates have the same purpose as the Future Fund Investment Mandate.  That is, the Investment Mandates are a mechanism for the Government to provide strategic investment guidance to the Future Fund Board of Guardians for the Nation-building Funds.

The Investment Mandates are updated only under special circumstances, such as where a new policy imperative has arisen or where there has been a significant change in the investment environment.

To date, only one Investment Mandate for each Nation-building Fund has been formally issued to the Board.

The Nation-building Funds' Investment Mandates are similar and came into effect on 29 July 2009.  They stipulate that for each Fund the Board is to adopt a benchmark return of the “Australian three-month bank bill swap rate +0.3 per cent per annum, calculated on a rolling 12-month basis (net of fees)”.  In targeting this benchmark return, the Board must minimise the probability of capital losses over a 12-month horizon.

As with the Future Fund Investment Mandate, the Nation-building Funds’ Investment Mandates are tabled in both Houses of Parliament but cannot be disallowed by either House.

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Contact information on this page: Funds and Actuarial Branch

Last updated: 15 July 2016