Future Fund’s quiet on intentions to take over management from Queensland Investment Corp

As dawn breaks on State Budget day, there are clouds on the horizon for the government-owned QIC, which could stand to lose billions of dollars in funds under management – and the millions in revenue it makes from managing them.

Future Fund’s Greg Combet and QIC’s Kylie Rampa.

As dawn breaks on State Budget day, there are clouds on the horizon for the $112bn Queensland Investment Corporation (QIC), which could stand to lose billions of dollars in funds under management – and the millions in revenue it makes from managing them.

The Federal Government’s Future Fund has moved to manage its investments internally and has already ditched Dexus as manager of its 20 per cent stake in Melbourne Airport.

Chairman of the $308bn fund, former Labor minister Greg Combet, last week said the change would “increase our flexibility and reinforce our focus on value for money.”

Kylie Rampa. Picture: Brett Lethbridge

The state-owned QIC, headed by CEO Kylie Rampa (pictured), manages Melbourne’s EastLink toll road network on behalf of the Future Fund, which acquired a 19.8 per cent stake in the $4bn asset a year ago.

It also owns and manages $600m solar and wind power business Tilt Renewables and the $9.7bn Port of Melbourne on behalf of the fund.

The corporation declined to answer specific questions on whether their managed assets were on the fund’s hit list, citing client confidentiality.

A Future Fund spokesman said it “does not comment on individual assets or managers”, so no clues there either – although Combet’s speech did hold a glimmer: “We do not anticipate a significant shift away from the way in which we partner with our external managers. We continue to recognise the benefits these partnerships bring in terms of insights and skills and our ability to remain focused on the overall portfolio.”

Tell that to Dexus.

Queensland Investment Corporation’s head office in Brisbane. Picture: David Clark

The uncertainty comes at a time when speculation is rife the Crisafulli administration is looking at a seismic restructure of QIC, or a potential merger with the Queensland Treasury Corporation (QTC).

As reported in Citybeat in February, QIC paid performance and retention payments in excess of $91m last financial year to its 878 staff, more than the $88m dividend it paid to the Queensland Government.

Another lead balloon delivered in the past year was Rampa’s revelation in parliament that QIC had written down its 5.4 per cent stake in embattled London utility company Thames Water to zero.

QIC has not revealed what it paid for its shares in 2006, so we’ll have to employ a bit of Citybeat maths.

In 2006, Macquarie bought a 48 per cent share of Thames Water for 2.3bn pounds - around $5.6bn, accounting for the weak Aussie dollar at the time.

Could it be that QIC’s bath in the Thames cost it a splash over $635m? Brrrr.

A Thames Water van is seen parked in London after British utility Thames Water says a U.S. investment firm has dropped a rescue bid for the debt-burdened company, Tuesday, June 3, 2025. Photo: AP

Betting the house

Social and affordable housing developer BHC is hoping donors will help it deliver a pilot project aimed at tackling the state’s housing crisis.

The Chermside Housing Pilot Project wants to build three, three-bedroom affordable townhouses, designed specifically for single parent families.

The project is slated for a $1m block of land at Chermside donated by Brisbane City Council.

The council has also funded a third of the project costs – but CEO Rebecca Oelkers said the group needed another $2 million.

“We are so grateful to Brisbane City Council which has funded one third of the project costs, and we’re calling on those individuals or organisations with the capacity for large philanthropic donations to help us reach our goal of $2 million to bring it to life,” she said.

“Arkhefield, Saunders Havill Group and Colliers have offered their in-kind services to help us deliver the project, beginning with the lodgement of a Development Application.”

Originally published as Future Fund’s quiet on intentions to take over management from Queensland Investment Corp