IN-CONFIDENCE
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THE FUTURE FUND’S INVESTMENT POLICIES –
RESPONSIBLE INVESTING
Issue
The Future Fund Board’s investment decisions continue to receive interest from the
media, specifically in relation to investments in ** text has been redacted **
nuclear weapons * redacted *.
Headline Statement
•
The Government is committed to the investment activities of the Future Fund
Board remaining independent of Government and will not interfere in its
investment decisions. This is in the best interest of the tax payer.
•
The Government is satisfied that the Future Fund is making investments
consistent with Australian domestic law and Australia’s obligations under
international conventions.
Key Points
•
The Future Fund Board, as part of its broad investment portfolio, invests in a
large number of entities across a wide variety of activities.
•
The Government expresses its broad expectations for how the Future Fund will
be invested and managed through the Investment Mandate. This is the best
mechanism to balance the Future Fund Board’s independence with the
requirement that they have regard to international best practice for institutional
investment in undertaking its investment decisions.
•
The Future Fund Board has independently identified in its investment policies
circumstances where it will limit its investment activities; it takes account of
Australian law and international conventions to which Australia is a signatory.
•
The Future Fund Board’s Investment Policies are subject to regular review.
When reviewing its Investment Policies the Board gives consideration to
practices across the investment industry, both domestically and internationally,
including environmental, social and governance (ESG) principles.
•
As part of this, I understand that the Board is currently giving consideration to
ESG issues and I have asked the Chair to keep me informed of progress.
Contact: Greg Feeney
Division: Funds and Superannuation
Date Updated: 15 August 2011
Phone: 02 6215 3422
Cleared by: Alan Greenslade
Cleared by Adviser:
IN-CONFIDENCE
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IN-CONFIDENCE
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If Asked: Has the Government or the Future Fund sought or received legal advice on
the investments made by the Future Fund in relation to the application of domestic
law and Australia’s obligations under international conventions?
•
Yes (see cautionary note on the legal advice below).
Policy Commitments
•
N/A
Contact: Greg Feeney
Division: Funds and Superannuation
Date Updated: 15 August 2011
Phone: 02 6215 3422
Cleared by: Alan Greenslade
Cleared by Adviser:
IN-CONFIDENCE
2
IN-CONFIDENCE
FMG-FM04
Legal Advice
Finance has received legal advice from the Office of International Law of the AttorneyGeneral’s Department (OIL) and the Australian Government Solicitor (AGS) on this issue.
** half a line of text has been redacted **
 The Government is satisfied that the Future Fund is making investments consistent
with Australian domestic law and Australia’s obligations under international
conventions.
Legal Services Branch advises that it is important that the content or substance of any legal
advice is not released nor even alluded to as this would risk waiving Legal Professional
Privilege. It is appropriate to answer a direct question about whether advice has been
sought or received but to go no further.
Background
The Investment Mandate guides the Board, setting a long-term benchmark return, without
excessive risk and does not seek to direct the Future Fund Board about specific investments.
* redacted *
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.
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Nuclear Weapons
The International Campaign to Abolish Nuclear Weapons (ICAN) argues in correspondence
to Government Ministers and Senior Labor MPs (sent 26 May 2011) that the Future Fund is
acting inconsistently with its own investment policy and is in breach of Australian law.
* redacted *
** a line and a half of text has been redacted **
.
Contact: Greg Feeney
Division: Funds and Superannuation
Date Updated: 15 August 2011
Phone: 02 6215 3422
Cleared by: Alan Greenslade
Cleared by Adviser:
IN-CONFIDENCE
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