Governance - Investment Funds

Investment Fund Legislation

The relevant legislation and the Administrative Arrangements Order sets the governance arrangements as summarised in the table below:



Future Fund

Future Fund Act 2006 

Medical Research Future Fund

Medical Research Future Fund Act 2015 

DisabilityCare Australia Fund

DisabilityCare Australia Fund Act 2013 

Future Drought Fund


Future Drought Fund Act 2019

Emergency Response Fund Emergency Response Fund Bill 2019

Aboriginal and Torres Strait Islander Land and Sea Future Fund

Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018 

Responsible Ministers

The responsible Ministers (Finance Minister and Treasurer) have the joint power, which may include to: issue an Investment Mandate for each fund, credit amounts to the fund, and arrange for debits through the relevant Special Account.

Investment Fund Principles

Investment funds involve the purchase and management of financial assets to fund a particular policy objective by subsequently drawing on earnings and / or capital. The establishment of an investment fund should therefore consider:

1. Is there a clear need to hypothecate funding outside the normal Budget process?
Unless there is a case to hypothecate resources, the Budget is the primary means for the allocation of resources.

2. Is there a clear need to hold financial assets (can a Special Account be used)?
Consideration should be given to the direct and indirect cost associated with investment funds, and the acquisition of financial assets.

3. What is the most efficient management arrangement for investment of financial assets, and who is best placed to manage these arrangements, taking into account the investment horizon, liquidity needs and risk appetite?
The acquisition and management of financial assets requires expertise, including risk and liquidity management expertise.

International Forum of Sovereign Wealth Funds

The International Forum of Sovereign Wealth Funds (IFSWF) is a voluntary group of sovereign wealth funds formed in 2009 with the intent of regularly meeting and exchanging views on issues of common interest to its members.

The Future Fund Board fully implements the Santiago Principles with regard to the Future Fund. The Future Fund Board is an IFSWF member and Australia has the distinction of being a founding member country.

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