Nation-building Funds' Investment Mandates
The Nation-building Funds Act 2008  requires the responsible Ministers to issue Investment Mandates to the Future Fund Board of Guardians regarding the investments of the Nation-building Funds.
The Nation-building Funds’ Investment Mandates have the same purpose as the Future Fund Investment Mandate. That is, the Investment Mandates are a mechanism for the Government to provide strategic investment guidance to the Future Fund Board of Guardians for the Nation-building Funds.
The Investment Mandates are updated only under special circumstances, such as where a new policy imperative has arisen or where there has been a significant change in the investment environment.
To date, only one Investment Mandate for each Nation-building Fund has been formally issued to the Board.
The Nation-building Funds' Investment Mandates are similar and came into effect on 29 July 2009. They stipulate that for each Fund the Board is to adopt a benchmark return 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)”. In targeting this benchmark return, the Board must minimise the probability of capital losses over a 12-month horizon.
As with the Future Fund Investment Mandate, the Nation-building Funds’ Investment Mandates are tabled in both Houses of Parliament but cannot be disallowed by either House.
- BAF Investment Mandate 
- BAF Investment Mandate Explanatory Statement 
- EIF Investment Mandate 
- EIF Investment Mandate Explanatory Statement 
Last updated: 15 July 2016