Economist warns Future Fund changes could set dangerous precedent

InvestorDaily

The government’s adjustment to the Future Fund’s mandate could set a dangerous precedent, warns an economist, raising concerns that it may pave the way for problematic future policies in the superannuation industry. Speaking on a recent episode of Relative Return Unplugged, AMP’s Shane Oliver said the government’s move is a “slippery slope”. “You start directing funds – Future Fund today, super funds tomorrow – to go into pet projects, you could ultimately detract from returns, which could lead to conflict,” the chief economist said.

“Normally, the requirement around such funds is to maximise returns with minimum risk or according to a level of risk tolerance and, in the case of super funds, to act in the best interest of members. If you then direct them to invest in certain sorts of things, then you are comprising that potentially.” On Thursday, Treasurer Jim Chalmers unveiled a new “statement of expectations”, directing the sovereign wealth fund to prioritise Australia’s key national goals, including supporting the energy transition, the supply of residential housing, and infrastructure.

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