Media release – Future Fund, 28 February 2022
Russia update
The Future Fund has implemented all sanctions imposed by Australia, the United States and the European Union to date. We have devoted significant resources to compliance and will continue to do so as additional sanctions are announced.
The Fund holds around 0.1% of the Fund or around $200 million in companies listed on the Russian stock exchange.
We have no holdings in Russian sovereign debt or other fixed income.
We will be winding down the remaining exposure (which is not currently subject to divestment sanctions) as market conditions permit.
Media release – Senator Nick McKim, 1 March 2022
Future Fund’s Russia divestment should set a precedent
The Future Fund’s decision to divest its $200m of holdings in Russian companies is a welcome step that should set a precedent for its other investment decisions, the Greens say.
“It is encouraging that the Future Fund has moved quickly and decisively in response to sanctions against Russia, and even gone beyond what was strictly required,” Greens Economic Justice spokesperson Senator Nick McKim said.
“However, it is inconsistent with what happened with other Future Fund investments like those into companies with ties to the Myanmar military junta – where investment fund managers were delegated these important decisions, and nearly a year passed before action was taken.”
“Australians have a right to know how the Future Fund is investing their money. Rather than ad hoc decisions based on the vibe of the thing, there should be clear rules setting out which sectors and companies the Fund will avoid.”
“Those rules should include not investing in weapons manufacturers or fossil fuel companies.”
“We need far greater transparency about where the Future Fund is investing Australians’ money. We only know about its investments into companies facilitating human rights abuses in Yemen and Myanmar through Freedom of Information requests.”
“There is a Government Bill currently before Parliament that would shield the Future Fund’s investment decisions from Freedom of Information Laws – this would be a serious regressive step, and the Greens will stand against it.”
“Were this Bill to pass unamended, it would mean the public would not find out about how much Australian money is being invested into which companies.”
