David Neal, who is currently the chief investment officer (CIO) of Future Fund, will take up the role of managing director on 4 August 2014.
Future Fund chief financial officer Paul Mann will continue in his capacity as acting managing director until Mr Neal starts his new role.
Former managing director Mark Burgess announced his intention to leave Future Fund for the private sector in September 2013.
The fund will immediately commence a process to appoint a new CIO in accordance with Australian public service recruitment requirements, according to a statement by the fund.
Mr Costello said Mr Neal was a "world-class investor and leader" and "the search process confirmed he was the best-qualified person for the role".
"He has played a pivotal role in establishing the fund, building its credibility and delivering strong returns for Australia. The board is confident he and his team will build on this and strengthen the fund’s reputation as a leading global investment institution," said Mr Costello.
“I would also like to thank the chief financial officer, Paul Mann, for his leadership as acting managing director during this process.”
Mr Neal has served as the CIO of Future Fund since July 2007 and was previously head of investment consulting with Watson Wyatt Australia.
