University Council

Investment (GLP5)


Governance Level Principle - No. GLP5

Relevant UTAS Ordinance and/or
Rule Reference No.
Ordinance 1 (Role of Council), 5 (Council Committees)
Relevant State/Federal Govt.
Legislation
University of Tasmania Act 1992
Commencement Date 8 April 2005
Review Date 8 June 2010

 

1. Statement of Context

Council, as governing body of the University, determines the investment policies of the University. The University pursues a policy of maximising the investment return on cash balances, reserves and restricted funds, in an economic and efficient manner, subject to an overriding commitment to financial prudence in managing investment funds, and in accordance with the investment criteria detailed in clause (3).

2. Objectives

The objectives of this principle are to:

  • establish criteria for the investment of University funds; and
  • describe roles, responsibilities and acountabilities.

3. Criteria

The University holds specific funds which are classified as trusts. These are subject to a Trust Funds Investment Policy. All funds other than Trust Funds are classified as investment funds and are subject to a General Funds Investment Policy.

The criteria for investment are:

  • Safety of Capital – Safety of capital is a dominant consideration in all investment decisions;
  • Liquidity – Investments are managed to ensure that sufficient funds are available to meet liabilities as and when they fall due; and
  • Returns – Long-term investments reflect the objective of maximising returns in excess of the inflation rate consistent with moderate risk exposure and to provide consistent real income over the long term.

Investment performance is measured by comparison with agreed benchmarks.

4. Implementation

Council approves University policies for investments on the recommendation of the Finance Committee.

The Finance Committee is responsible for:

  • developing the General Funds Investment Policy and the Trust Funds Investment Policy;
  • ensuring that investment decisions are consistent with this Principle and approved policies;
  • appointing one or more Investment Managers to manage funds on behalf of the University, and an investment consultant to provide expert and independent advice in respect to investment strategy and management; and
  • monitoring and reporting to Council on the investment of University funds.

The investment policies establish operational delegations to Investment Managers and the Executive Director Finance and Administration.

 

Approved by Council on 8 April 2005
Reviewed Council June 2006 (Resolution no. 06/3/43)