18Future Fund Investment Mandate

#### 18 Future Fund Investment Mandate (1) The responsible Ministers may give the Board written directions about the performance of its Future Fund investment functions, and must give at least one such direction. > Note: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901. (1A) Subsection (1) has effect subject to section 18A. (2) In giving a direction under subsection (1), the responsible Ministers must have regard to: (a) maximising the return earned on the Fund over the long term, consistent with international best practice for institutional investment; and (b) such other matters as the responsible Ministers consider relevant. (3) Directions under subsection (1) are to be known collectively as the Future Fund Investment Mandate. (4) A direction under subsection (1) may set out the policies to be pursued by the 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. (5) Subsection (4) does not limit subsection (1). (5A) Subsection (4) has effect subject to section 18A. (6) The Future Fund Investment Mandate prevails over subsection (10) to the extent of any inconsistency. (7) The responsible Ministers must not give a direction under subsection (1) that is inconsistent with this Act (other than subsection (10)). (8) A direction under subsection (1) must not take effect before the 15th day after the day on which it is given. (9) A direction under subsection (1) is a legislative instrument. > Note: 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. (10) In the performance of its Future Fund investment functions, the Board must seek to maximise the return earned on the Fund over the long term, consistent with international best practice for institutional investment. > Note: Future Fund investment function is defined in section 5. (11) Subsection (10) has effect subject to: (a) this Act; and (b) a direction under subsection (1); and (c) a direction under subclause 8(1) of Schedule 1. (12) Before the first occasion on which an amount is debited from the Fund Account for the purpose of discharging, in whole or in part, an unfunded superannuation liability, the responsible Ministers must review the Future Fund Investment Mandate in consultation with the Board. > Note: If there is to be a change in the Future Fund Investment Mandate, the responsible Ministers must consult the Board under section 19.