Future fund may be internally managed
The estimated $140 billion that will go into the Federal Government’s Future Fund over the next 15 years may not be managed by external fund managers, but controlled internally by specialists selected by Treasury.
When contacted by Money Management this morning, a spokesperson for Treasury would not confirm or deny wide speculation that the money in the future fund would be managed by the Government through what it has dubbed the Future Fund Board of Guardians.
Legislation attached to the fund, which is being established to meet the superannuation liabilities of pubic servants, is due to be finalised within the next six weeks.
Speculation external companies would be denied the chance to manage the fund arose after the Federal Treasurer, Peter Costello, announced in a statement earlier today that former Commonwealth Bank chief executive David Murray had been appointed as chairman of the Future Fund.
The statement said other appointments to the governing board of the fund would be announced prior to the passage of the legislation. Treasury said appointees would be selected on the basis of their expertise in investment and corporate governance.
Murray will not commence his role as chairman until the related legislation is formally set. Until then, Treasury said Murray would be employed as a consultant to advise on the fund’s establishment.
He will join asset consultant Watson Wyatt, who has already been appointed by the Government to assist in determining how the money will be invested.
At the time of the appointment, Costello said Watson Wyatt would provide advice to the Government on a range of issues including the type of asset classes the Government might invest in, the expected returns and the associated level of risk.
David Murray was chief executive of the Commonwealth Bank from 1992 until his retirement earlier this year.
Recommended for you
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments for investments.
Inefficient data processes and systems mean advisers are spending over half of their time on product implementation and administration at the expense of clients, according to research.
With the regulator announcing its enforcement focus for 2025 last week, law firm Hall & Wilcox examines the areas which have dropped down the list in priority for the regulator.
