(The corporation is supposed to target an average return of 2 to 3 per cent above the five‑year Australian government bond rate as the benchmark return of the portfolio over the medium to long term.)

The Arnott’s investment falls under the NRF priority category of “value add in agriculture, forestry and fisheries” – a mandate that conjures up the notion of using advanced technology to improve water usage or crop yield.

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Last month, the fund was used to invest $36 million in Patties Foods – famous for its Four’N Twenty meat pie brand. This company is the second-largest employer in the East Gippsland region, but again it is owned by an Asia Pacific private equity firm, which acquired the business for about $550 million in 2022.

Here, the NRF cited advanced manufacturing facilities. “Patties has an established market position, best-in-class manufacturing capability and nationwide supply chain, as well as decades-long relationships with major Australian supermarket chains,” the fund said in announcing its contribution to debt funding.

Indeed, the NRF has been under pressure to place more investment emphasis on underwriting projects that support net zero transition. Last week, it announced its first – a $100 million outlay for Intellihub, which is working on the deployment of a smart, connected energy grid in Australia.

Its mandate was to finance the transformation and diversification of Australia’s industry and economy, and to support the development of market‑leading enterprises in the priority areas of the Australian economy that deliver high value, internationally competitive products and services.

Investing in Tim Tams and Four’N Twenty pies seems like a positive move to ensure support for manufacturing and jobs, but linking these investments to transformation and diversification looks tenuous.

Yet NRF chief executive David Gall said the fund was supporting planned future-growth capital expenditure as the company expands production and prepares to take some of its most iconic brands to the global market.

“Arnott’s is a great Australian company, and its products are a source of pride and enjoyment for so many Australians,” Gall said.