Robust statutory and investment governance arrangements are central to the effective operation of our organisation in pursuit of our investment objectives.
Legislation
The core statutory governance arrangements for the funds we manage are set out in the following legislation:
- Future Fund - Future Fund Act 2006
- Medical Research Future Fund - Medical Research Future Fund Act 2015
- Aboriginal and Torres Strait Islander Land and Sea Future Fund - Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018
- DisabilityCare Australia Fund - DisabilityCare Australia Fund Act 2013
- Future Drought Fund - Future Drought Fund Act 2019
- Emergency Response Fund - Emergency Response Fund Act 2019
This legislation sets out the roles and responsibilities of the Government and of the Board of Guardians (Board) and the Future Fund Management Agency (Agency).
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) applies to the Agency together with other Commonwealth rules, policies and guidelines. Aspects of the PGPA Act also apply to the Board.
Agency staff are employed under the Public Service Act 1999.
Governance and accountability
Legislation establishes the independence of the Board and ensures that investment decisions and activities are conducted at arm’s length from government.
The Board is responsible for investing the assets of the funds in accordance with the legislation and investment mandates.
The Treasurer and the Minister for Finance have oversight of the funds subject to the independence of the Board. The Government's role includes appointing Board members and setting the investment mandates for each of our funds.
The legislation provides accountability arrangements for the Board and Agency, including the tabling in Parliament of an annual report and audited financial statements. We publish quarterly portfolio updates to provide details of the investment activity and performance of the funds. We also publish speeches, editorial and media releases and regularly engage with the media. Read more about how you can access our information.
The Government has provided a Statement of Expectations to the Board and Agency. The Board and the Agency have responded with a Statement of Intent.
We routinely appear before Estimates hearings of the Senate Committee on Finance and Public Administration to provide the Committee with updates on the operations and the performance of the Funds.
Santiago Principles
As a sovereign wealth fund and founding member of the International Forum of Sovereign Wealth Funds, we fully implement the Santiago Principles. The principles provide a framework of generally accepted governance accountability arrangements and prudent investment practices.
This document describes how the Board of Guardians implements the Santiago Principles.
Read more about our global network.