{"id":"F2009L02893","name":"Health and Hospitals Fund Investment Mandate Directions 2009","slug":"health-and-hospitals-fund-investment-mandate-directions-2009","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":80273,"registerId":"commonwealth-F2009L02893-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Health and Hospitals Fund Investment Mandate Directions 2009","content":"![](image.001.png)\n\nHealth and Hospitals Fund Investment Mandate Directions 20091\n\nNation-building Funds Act 2008\n\nWe, WAYNE SWAN, Treasurer, and LINDSAY TANNER, Minister for Finance and Deregulation, give these Directions under subsection 229 (1) of the Nation-building Funds Act 2008.\n\nDated 14 July 2009\n\nWAYNE SWAN LINDSAY TANNER\n\nTreasurer Minister for Finance and Deregulation\n\nPart 1 Preliminary\n\n1 Name of Directions\n\nThese Directions are the Health and Hospitals Fund Investment Mandate Directions 2009.\n\n2 Commencement\n\nThese Directions commence on the 15th day after they are given.\n\n> Note Section 42 of the Legislative Instruments Act 2003 (which deals with the disallowance of legislative instruments) does not apply to this instrument: see section 44 of that Act. Part 6 of that Act (which deals with the sunsetting of legislative instruments) does not apply to this instrument: see section 54 of that Act.\n\n3 Definitions\n\nIn these Directions:\n\n> Act means the Nation-building Funds Act 2008.\n\n> Board means the Future Fund Board of Guardians.\n\n> Fund means the Health and Hospitals Fund.\n\n> responsible Ministers has the same meaning as in the Act.\n\n4 Object of these Directions\n\n(1) The Health and Hospitals Fund is a financing source to enhance the Commonwealth’s ability to make payments in relation to the creation or development of health infrastructure.\n\n(2) The object of these Directions is to give guidance to the Board in relation to its investment strategy for the Fund. The Board is required by the Act to seek to maximise the return earned on the Fund, consistent with international best practice for institutional investment and subject to its obligations under the Act and any directions given by the responsible Ministers under the Act.\n\n(3) These Directions are given under subsection 229 (1) of the Act to articulate the Australian Government’s expectations of how the Fund will be invested and managed by the Board.\n\n(4) The responsible Ministers may review these Directions, including the benchmark return, in consultation with the Board. The first review is expected to occur before 1 July 2010.\n\nPart 2 Directions\n\n5 Benchmark return\n\n(1) The Board is to adopt a benchmark return on the Fund 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).\n\n(2) In targeting this benchmark return, the Board should invest in such a way as to minimise the probability of capital losses over a 12 month horizon.\n\n6 Board must consider impacts from its investment strategy\n\nIn undertaking its investment activities, the Board must act in a way that:\n\n(a) minimises the potential to effect any abnormal change in the volatility or efficient operation of Australian financial markets; and\n\n(b) is unlikely to cause any diminution of the Australian Government’s reputation in Australian and international financial markets.\n\n> Note\n\n> Note: 1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See http://www.frli.gov.au.","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"False. The Directions do not amend the Nation‑building Funds Act or change the statutory scope of the Health and Hospitals Fund; they set ministerial expectations on how the Fund should be invested (benchmark, short‑term capital‑loss avoidance, market conduct and reputational constraints) and provide for periodic review by responsible Ministers (see ss 4–6). They impose operational constraints on the Board rather than altering the Fund's statutory purpose."},"complexity_factors":["Use of a market‑linked benchmark (Australian three‑month bank bill swap rate + 0.3% p.a., rolling 12 months, net of fees) requires technical market implementation and monitoring (s 5).","Requirement to \"minimise the probability of capital losses over a 12 month horizon\" is a quantitative goal that is ambiguous in measurement and constrains asset allocation choices (s 5(2)).","Qualitative duties to avoid causing \"abnormal\" market volatility and harm to the Government's reputation demand discretionary judgment by the Board and monitoring of market impact (s 6).","The Directions sit alongside the Nation‑building Funds Act obligations (Board must still seek to maximise returns consistent with the Act), creating layered duties and potential trade‑offs (s 4(2) and opening provisions).","A ministerial review mechanism can alter expectations over time, adding regulatory uncertainty to long‑term investment planning (s 4(4)).","Instrument is short and relies on defined terms and the Act for substantive scope, so practical application depends on external statutory definitions and the Board's policies."],"plain_english_summary":"These Directions instruct the Future Fund Board of Guardians how to invest the Health and Hospitals Fund: adopt a benchmark return of the Australian three‑month bank bill swap rate + 0.3% per annum (rolling 12‑month, net of fees), minimise the probability of capital losses over 12 months, and avoid causing abnormal market volatility or damage to the Commonwealth’s financial reputation.\n\nThey affect the Board directly and, indirectly, taxpayers and health‑infrastructure payments by shaping risk appetite, expected returns and investment discretion; responsible Ministers may review the Directions."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The directions remain tightly focused on their original purpose: setting investment parameters for the Health and Hospitals Fund. The scope has not expanded beyond articulating the government's expectations for fund management, benchmark returns, and risk minimisation."},"complexity_factors":["Only 4 defined terms in section 3","Single, clear investment benchmark in section 5 (bank bill rate + 0.3%)","Minimal cross-referencing (only to Nation-building Funds Act 2008)","No nested exceptions or conditional logic","Short document (6 sections across 2 parts)","Straightforward operational mandate with limited discretionary language"],"plain_english_summary":"This document sets the investment rules for the Health and Hospitals Fund, a pot of government money set up to pay for hospitals and health infrastructure. It tells the Future Fund Board of Guardians (the investment managers) how to invest the money: they must aim for a return equal to the bank bill rate plus 0.3% per year, while avoiding risky investments that could lose money over a 12-month period. The Board must also avoid messing up financial markets or damaging Australia's reputation. The Treasurer and Finance Minister issued these directions in July 2009 and planned to review them by mid-2010."}},"importantCases":[],"_links":{"self":"/api/acts/health-and-hospitals-fund-investment-mandate-directions-2009","history":"/api/acts/health-and-hospitals-fund-investment-mandate-directions-2009/history","analysis":"/api/acts/health-and-hospitals-fund-investment-mandate-directions-2009/analysis","conflicts":"/api/acts/health-and-hospitals-fund-investment-mandate-directions-2009/conflicts","importantCases":"/api/acts/health-and-hospitals-fund-investment-mandate-directions-2009/important-cases","documents":"/api/acts/health-and-hospitals-fund-investment-mandate-directions-2009/documents"}}