Commonwealth Numbered Acts Commonwealth Numbered Acts(1) The responsible Ministers may give the Future Fund Board written directions about the performance of its Higher Education Endowment Fund investment functions, and must give at least one such direction.
Note 1: Higher Education Endowment Fund investment function is defined in section 5.
Note 2: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901 .
Note 3: See also section 53 (additional obligations of responsible Ministers).
(2) Subsection (1) has effect subject to section 25.
(3) 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) enhancing the Commonwealth's ability to:
(i) make grants of financial assistance to eligible higher education institutions in relation to capital expenditure; and
(ii) make grants of financial assistance to eligible higher education institutions in relation to research facilities; and
(c) any Maximum Grants Rules that are in force; and
(d) such other matters as the responsible Ministers consider relevant.
(4) Directions under subsection (1) are to be known collectively as the Higher Education Endowment Fund Investment Mandate .
(5) A direction under subsection (1) 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.
(6) Subsection (5) does not limit subsection (1).
(7) Subsection (5) has effect subject to section 25.
(8) The Higher Education Endowment Fund Investment Mandate prevails over subsection (12) to the extent of any inconsistency.
(9) The responsible Ministers must not give a direction under subsection (1) that is inconsistent with this Act (other than subsection (12)).
(10) A direction under subsection (1) must not take effect before the 15th day after the day on which it is given.
(11) A direction under subsection (1) is a legislative instrument.
Note 1: Section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the direction--see section 44 of that Act.
Note 2: Part 6 (sunsetting) of the Legislative Instruments Act 2003 does not apply to the direction--see section 54 of that Act.
(12) In the performance of its Higher Education Endowment Fund investment functions, the Future Fund Board must seek to:
(a) maximise the return earned on the Fund over the long term, consistent with international best practice for institutional investment; and
(b) enhance the Commonwealth's ability to:
(i) make grants of financial assistance to eligible higher education institutions in relation to capital expenditure; and
(ii) make grants of financial assistance to eligible higher education institutions in relation to research facilities.
Note: Higher Education Endowment Fund investment function is defined in section 5.
(13) Subsection (12) has effect subject to:
(a) this Act; and
(b) a direction under subsection (1).