CANBERRA, Nov 21 (Bernama-Xinhua) -- The Australian government has said it will direct the country's sovereign wealth fund, the Future Fund, to invest in the green energy transition, housing and infrastructure.
Treasurer Jim Chalmers and Minister for Finance Katy Gallagher announced on Thursday that the government will introduce a new investment mandate and statement of expectations for the independently managed A$230 billion (US$149.6 billion) Future Fund.
The changes will require the fund to consider national domestic priorities, including housing supply, the net-zero emissions transition and the delivery of improved infrastructure when making investment decisions.
The directive will reiterate that the fund's primary objective is to maximise returns, and it will still be required to earn at 4-5 percentage points above inflation each year on average.
"The fund's primary focus will remain on maximising its returns, and at the same time, our changes will help it maximise its role in delivering for Australians in the future," Chalmers and Gallagher said in a joint statement.
The Future Fund was established in 2006 with a government seeding investment of A$60.5 billion (US$39.3 billion). It has averaged annual returns of 8.3 per cent over the last decade and has grown to A$230 billion, approximately 10 per cent of Australia's gross domestic product.
The government also on Thursday committed to not drawing down on the fund's capital until at least 2032-33, a six-year extension when it would then be used for its initial purpose of helping to pay the pensions of retired public servants.
Chalmers in January appointed Greg Combet, who served as Australia's Minister for Climate Change and Energy Efficiency from 2010 to 2013, as the chair of the fund.
-- BERNAMA-XINHUA
