Summary
The Western Australian Future Fund was launched in December 2012, with an initial $300 million investment. Fund distributions toward infrastructure will begin in 2032.
Background
In the 2012-13 Western Australia budget, the fund was announced by setting aside accumulating a portion of the royalty revenue from Western Australia’s finite mineral resources. Royal assent was given to the Western Australian Future Fund Bill 2012 with the Act coming into operation on November 29, 2012. The Western Australia Future Fund is initially being funded by the transfer of over $1 billion in seed capital (over the period 2012-13 to 2015-16) being monies from the Royalties for Regions (RfR) Fund. Once the seed capital is in place in 2016-17; for each of the 16 years thereafter, the fund will receive at least one percent of Western Australia’s annual royalty revenue per annum.
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Strategy & Objectives
In the beginning the fund will be allowed to invest in overseas investments in cash and bonds, but not equities.
Governance
The sovereign wealth fund is being managed by the Western Australia Treasury Corporation and Department of Treasury.
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