41Future Drought Fund Investment Mandate

41 Future Drought Fund Investment Mandate

(1) The responsible Ministers may (subject to section 43) give the Future Fund Board written directions about the performance of its Future Drought Fund investment functions, and must give at least one such direction.

Note 1: Future Drought Fund investment function is defined in section 5.

Note 2: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.

(2) In giving a direction under subsection (1), the responsible Ministers must have regard to: (a) the need to maximise the return earned on the Future Drought Fund over the long term, consistent with international best practice for institutional investment; and (b) the need to enhance the Commonwealth’s ability to: (i) pay amounts payable by the Commonwealth under an arrangement made under section 21; and (ii) make grants under section 21; and (c) such other matters as the responsible Ministers consider relevant. (3) Directions under subsection (1) are to be known collectively as the Future Drought Fund Investment Mandate. (4) Without limiting subsection (1), a direction under that subsection may set out the policies to be pursued by the Future Fund Board in relation to: (a) matters of risk and return; and (b) the allocation of financial assets. A policy relating to the allocation of financial assets must not be inconsistent with a policy relating to matters of risk and return. Relationship between directions and other provisions of this Act (5) A direction under subsection (1): (a) prevails over section 42 to the extent of any inconsistency; and (b) must not otherwise be inconsistent with this Act. When direction takes effect (6) A direction under subsection (1) must not take effect before the 15th day after the day on which it is given. Direction is a legislative instrument (7) A direction under subsection (1) is a legislative instrument.

Note 1: Section 42 (disallowance) of the Legislation Act 2003 does not apply to the direction—see regulations made for the purposes of paragraph 44(2)(b) of that Act.

Note 2: Part 4 of Chapter 3 (sunsetting) of the Legislation Act 2003 does not apply to the direction—see regulations made for the purposes of paragraph 54(2)(b) of that Act.