Future Fund sought briefing on ANZ markets scandal

The Future Fund did its own investigations into the ANZ bond trading scandal, contacting market participants to get a sense of how it might have happened.

Future Fund chief investment officer Ben Samild. Picture: Supplied

Australia’s $300bn Future Fund did its own diligence on the ANZ bond trading scandal and staff at the sovereign wealth fund gathered market intelligence on the nature of adverse market movements at the heart of the issue, a Freedom of Information search reveals.

Documents released to The Australian show Future Fund chief investment officer Ben Samild and his colleagues were given a briefing on allegations ANZ might have misled the Australian government’s debt agency in a 2023 bond placement. The bank denies wrongdoing.

These documents show the Future Fund contacted “stakeholders” in the months after ANZ revealed it was facing investigation over the $14bn bond placement in which the fed­eral government was the client.

Key points about ANZ’s alleged market manipulation were provided to Mr Samild and detailed elements of the Australian Office of Financial Management’s bond syndication program. These points were heavily redacted in the version provided to The Australian.

The AOFM reported ANZ to the Australian Securities & Investments Commission in mid-2023 over concerns the bank’s traders had unduly profited at the expense of the taxpayer when the bond deal was priced. ASIC’s investigation is ongoing.

An unnamed AOFM staff member described the steps involved in a typical government bond placement to Mr Samild, who was appointed CIO in 2023.

But the Future Fund refused to release most of its file because it would hurt the agency’s relationship with the market.

A Future Fund spokesman said the agency was keeping abreast of the ANZ matter.

“As you would expect, the Future Fund monitors events in the market and we continue to monitor this matter,” he said.

ANZ chief executive Shayne Elliott speaks at the bank’s annual general meeting. Picture: Arsineh Houspian

Future Fund FOI decision-maker Monique Saunders said the remainder of the notes drafted for Mr Samild contained “confidential and sensitive information from, and about, a range of stakeholders” provided on the basis it would “not be disclosed”.

That being so, Ms Saunders noted there was public interest in disclosing some elements of the document, which “could inform debate on a matter of public importance relating to the ANZ syndication dealings and reporting and how that was addressed by the Agency”.

“The Agency has regular meetings with stakeholders to obtain updates on issues that concern the Agency’s investments and portfolio, and economic or geopolitical issues more generally,” Ms Saunders wrote.

“It is important that the Agency is able to conduct these meetings, and receive frank feedback, so the Agency can obtain relevant market insights, stay up to date with matters affecting its investment strategy and portfolio, and that it becomes aware of issues or concerns early so that appropriate steps can be taken to protect its investments on behalf of the Australian government.”

The Future Fund has more than $24.8bn allocated to Australian equities including ANZ shares.

“Disclosure would damage the strong relationship of trust and reduce the ability of the Agency to conduct negotiations and investment activities with those stakeholders in the future,” Ms Saunders said.

Future Fund chief executive Raphael Arndt revealed late last year the agency had questioned Mineral Resources over the conduct of its boss Chris Ellison.

ANZ declined to comment.

Originally published as Future Fund sought briefing on ANZ markets scandal