Future Fund hunts for new chair

The $250 billion Future Fund is searching for a new chair after Peter Costello flagged his intention to step down after 14 years in the role.

Canberra has confirmed that the former liberal treasurer's long stint - first as a board member and then chair - will end in February.

This announcement follows the appointment of Mary Reemst to the Future Fund board, with sources seeing her as a prime contender for the top governance job

Costello established the sovereign wealth fund as John Howard's treasurer in 2006 to fund public sector liabilities with $60.5 billion in budget surpluses and proceeds from the privatisation of Telstra.

A spokesman for federal treasurer Jim Chalmers thanked Costello for "his significant contribution" and said a "merit-based" recruitment process will now start to find a replacement.

"As treasurer, Costello was instrumental in the establishment of the Future Fund in 2006 and setting up its initial investment mandate."
He leaves with the government's appreciation and respect.

"During his time at the FAA, its portfolio has grown steadily and is today with more than 200 billion but it's delivered an average annual return of 8.8 per annum over the past decade."

The government will also carefully consider any future board vacancies as an opportunity to refresh and renew future federal leadership," the spokesperson said.