Future Fund shifts focus to housing and green energy investments

The Future Fund, Australia’s $230 billion sovereign wealth fund, will now focus on investing in housing, renewable energy, and infrastructure. This marks the first major change to its investment mandate since its creation in 2006. While the fund must still achieve commercial returns, it will prioritize projects that align with government goals, such as increasing housing supply and supporting the transition to net zero emissions. The fund has previously operated under a broad mandate to maximize returns. The government has committed to not withdrawing from the fund until at least 2032-33, ensuring its long-term role in the economy. Concerns have been raised about the potential impact on the fund's independence and investment focus.