Peter Costello was the federal cabinet's sole choice to take over the role of chairman of the $97 billion Future Fund, Finance Minister Mathias Cormann says.
The former Liberal federal treasurer was confirmed in the role on Tuesday, having been the acting chairman since January 11 following the resignation of David Gonski to become chairman of ANZ Bank.
Mr Costello, who was responsible for the establishment of the fund in 2006, was appointed to the fund's board in 2009 by the former Labor government following his decision to retire from politics.
Senator Cormann said the cabinet had decided to appoint an existing director of the board, rather than spreading the search wider.
"There was no short list beyond Peter Costello. He was judged by us to be the most appropriate choice," the minister told reporters in Canberra.
Mr Costello was the nation's longest-serving treasurer (1996-2007) and set up the fund to cover future public-servant liabilities.
A portfolio update on Monday found the fund posted significant growth of 17.2 per cent to $96.56 billion in 2013.
Since it was established with government contributions of $60.5 billion the fund has made a return of 6.9 per cent a year, just shy of its long-term target of 7.2 per cent a year.
Senator Cormann and Treasurer Joe Hockey also announced the appointment of John Poynton as a fund board member to the fund.
He brings to the role more than 40 years of experience in the financial services industry.
He is chairman of Azure Capital and a director of Crown Perth, and previously served as a director of the Export Finance and Insurance Corporation.
"Mr Poynton is an outstanding professional with very high standing in his field of expertise," Mr Hockey and Senator Cormann said in a statement.
Mr Costello and Mr Poynton have been appointed to their positions for five years from February 4.
