Policy University Management FMPM 200 - FMPM 399 - Assets FMPM 302 Authorised Limits - Investments

FMPM 302 Authorised Limits - Investments

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Asset Allocation Guidelines

Cash Portfolio

S&P Rating Short Term Ratings (for terms up to 12 months)	Maximum Portfolio Exposure	Maximum Term	Maximum Exposure To Any One Institution
QTC	75.00%	3 years	75.00%
A1+	100.00%	3 years	50.00%
A1	60.00%	2 years	25.00%
A2	30.00%	1 year	10.00%
A3	15.00%	1 year	5.00%
Unrated but APRA regulated	15.00%	1 year	5.00%

S&P Rating Long Term Ratings (for terms between 1 and 3 years)	Maximum Portfolio Exposure	Maximum Term	Maximum Exposure To Any One Institution
QTC	75.00%	3 years	75.00%
AAA (+or-); AA+; AA	100.00%	3 years	50.00%
AA-; A (+or-);	60.00%	2 years	25.00%
BBB+	30.00%	1 year	10.00%
BBB & BBB-	15.00%	1 year	5.00%
Unrated but APRA regulated	15.00%	1 year	5.00%

Where any investment is downgraded below the minimum acceptable rating level, approval for continuing with or selling the investment arrangement is to be obtained from the Deputy Vice Chancellor, Services and Resources as soon as this information becomes known.

Managed Funds

Asset Allocation Based on Market Value	Percentage %	Maximum Exposure any One Institution (per Fund Manager)
Australian Equities	30 – 70	20%
International Equities	5 - 30	20%
Property	0 - 15	30%
Fixed Interest/Global Credit	0 - 20	50%
Diversified Alternatives	0 – 18	20%
Cash	0 - 35	50%
Expected Rate of Return - After fees over rolling 5 year period that exceed CPI	4.0 – 5.0 %pa
Expected Risk /Return	Moderate to Average Risk and Return
Likelihood of negative return	1 in 5 years

GAIN OR LOSS (based on cost)

Asset Allocation

Gain or loss

> or equal to

Each and every Class

Either > or equal to 20% of cost or >$50,000

Administration

NOTE: Printed copies of this procedure are uncontrolled, and currency can only be assured at the time of printing.

Approval Details

Policy Domain	University Management
Policy Sub-domain	Finance
Policy Custodian	Chief Financial Officer
Approval Authority	Vice Chancellor
Date for next Major Review	02/12/2023

Revision History

Version	Approval date	Implementation date	Details	Author
21-1	23/11/2021	23/11/2021	Amendments to Strategic Asset Allocation limit Cash to 0% (from 5%) - 35%, Likelihood of negative return amended to 1 in 5 years (from 7 years) approved by Finance Committee (4/21)	Deputy Director, Financial and Business Services
20-1	02/12/2020	02/12/2020	Amendments to Strategic Asset Allocation limit Cash to 5% (from 10%) approved by Finance Committee (3/20)	Senior Finance Officer
15-01	09/09/2015	10/09/2015	Policy Sponsor and Approval Authority updated to reflect the approved Policy and Delegations Framework	Quality Standards and Policy Unit
15-3	13/08/2015	04/09/2015	Further amendments to maximum term limits (under the S&P ratings columns) as approved by Finance Committee (refer to 4/15 minutes for details)
15-2	6/08/2015	13/08/2015	Amendments to maximum term limits for investments – Approved by Investment Sub-Committee (refer to (3/15) minutes for details).
15-1	23/10/2014	23/06/2015	Amendments to investment category limits
13-01	11/04/2013	11/04/2013
07-02	08/05/2008	19/05/2008
07-01	08/03/2007	04/04/2007
03-01	03/2003	03/2003