6.8 Treasury and Investment Policy
Treasury and Investment Policy
Purpose:
This policy guides the responsible and effective management of the University, and its controlled entities, investment and financing activities.
| 1 | Investment funds | Responsible |
|---|---|---|
| 1.1 | The University seeks to preserve and grow the value of its long term investment funds, provide a sustainable income stream and maintain a level of liquidity consistent with the investment strategy. | Deputy Vice-Chancellor (Student Services and Operations) |
| 1.2 |
Investment allocation decisions for longer-term investment funds will be managed to achieve: a) a return objective that is long term and not a year by year measure. b) a return, after fees, at least equal to the average increase in headline consumer price index plus a margin recommended by the University’s investment advisors and approved as part of the University’s annual strategic planning process. c) a diversified portfolio that mitigates the risk of a permanent loss of capital limit. d) returns with a lower volatility than would be experienced by investing solely in the public equity markets. e) a zero-carbon future. | Deputy Vice-Chancellor (Student Services and Operations) |
| 1.3 | Investment decisions will ensure investment funds maintain sufficient liquidity to mitigate existential risk. | Deputy Vice-Chancellor (Student Services and Operations) |
| 1.4 | The University's investment decisions will be governed by a negative and positive fossil fuel screen and considers the United Nations Sustainable Development Goals. | Deputy Vice-Chancellor (Student Services and Operations) |
| 1.5 | The University’s investments will be managed to realise the objectives of endowment funds and to meet annual spending requirements (eg scholarships, prizes, gifts and research). | Deputy Vice-Chancellor (Student Services and Operations) |
| 1.6 | Investment funds are managed to support the University in maintaining its consolidated debt to equity ratio. | Deputy Vice-Chancellor (Student Services and Operations) |
| 2 | Governance and risk management | |
| 2.1 | Any University financial decision will be compliant with relevant borrowing facilities’ covenants and undertakings and the University’s consolidated debt to equity ratio of 30 per cent and maintain a Moody’s investment grade credit rating at no lower than Aa2. | Deputy Vice-Chancellor (Student Services and Operations) |
| 2.2 | All aspects of enacting and administering borrowings or financing arrangements will be coordinated by the University’s treasury function, which will ensure appropriate controls are in place to manage risks. | Deputy Vice-Chancellor (Student Services and Operations) |
| 3 | Borrowings, debt and cash management | |
| 3.1 | Borrowing arrangements will ensure the University’s liquidity, maintain financial stability, and support the University’s long-term funding strategy. | Deputy Vice-Chancellor (Student Services and Operations) |
| 3.2 | The University will seek appropriate borrowings to minimise financing costs and provide stability through management of refinancing risk. | Deputy Vice-Chancellor (Student Services and Operations) |
| 3.3 | The University’s cash balances will be managed efficiently to ensure all obligations are met, at the lowest possible cost. | Deputy Vice-Chancellor (Student Services and Operations) |
29 June 2022 Once printed this is an uncontrolled document: Version history
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