Commonwealth Numbered Acts Commonwealth Numbered Acts(1) The responsible Ministers may give the Board written directions about the performance of its 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 .
(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 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).
(6) The 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 for the purposes of the Legislative Instruments Act 2003 .
Note: Section 42 of the Legislative Instruments Act 2003 does not apply to the direction—see section 44 of that Act.
(10) In the performance of its 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: 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 Investment Mandate in consultation with the Board.
Note: If there is to be a change in the Investment Mandate, the responsible Ministers must consult the Board under section 19.