Investment Policy

Status


Approved

This policy is necessary to direct the investment of funds known to be in excess of immediate operational requirements. It is intended to generate an income stream and increase the funds available for future capital development.

Public
visibility
Approved on: 27 Jun 2013
Review cycle: 3 Years
Owned by

Operations

Approved by

College Board

Category: 
Policy Contact: 
Chief Operations Officer
Background: 

Historically, the College has not been in a position to accumulate funds to meet operational costs or future capital development. The College is committed to widening its funding base in order to be less reliant on tuition fee income, and to accumulate funds for future capital development.

Purpose: 

This policy is necessary to direct the investment of funds known to be in excess of immediate operational requirements. It is intended to generate an income stream and increase the funds available for future capital development.

Scope: 

This Policy applies to the Principal, Chief Operations Officer, Governing Board, Finance and Audit Sub-Committee and the Finance clerk.

Statement: 

Investment Plan Purpose

The purpose of any investment plan for the College is to:

  • Generate an income stream and a fund source for future capital development, for the support and benefit of the College;
  • Manage the investment of surplus funds not immediately required for the general operations of the College;
  • Manage donations and non-interest bearing loans made to the College;
  • Make investment decisions on behalf of the College;
  • Manage of Register of Investments on behalf of the College.

Trustee/Custodian

The Trustee/Custodian of the College investment portfolio shall be the Finance Committee of the governing Board of the College. The Finance committee shall be responsible to:

  • Manage all the investments under its control on behalf of the College;
  • Take reasonable care to ensure that the investments under its control are managed in accordance with the provisions of the governing Board of the College and any restrictive legislative requirements of the Incorporations Act of the State of Victoria;
  • Issue a report to the governing Board of the College, at least half yearly, on the state of the College‚Äôs investments.
  • Ensure that the Investment Portfolio is audited at least annually in accordance with the legislative requirements of the Incorporations Act of the State of Victoria

Allowable Investments

All investment decisions shall be made by the Finance Committee, and reported to the Governance Board at its scheduled meetings. Allowable investments, for the time being, shall include: * Investment Cash Management Funds; * Investment in government guaranteed bonds; * Investment in Fixed Interest Bearing Deposits with a Bank or Credit Union regulated by The Australian Prudential Regulation Authority (APRA) in accordance with the Banking Act 1959.

Non-Allowable Investments

For the time being, the Finance Committee shall not be permitted to invest in ordinary shares, other trading opportunities managed by Stock Markets, bullion or real estate. However, the Finance Committee shall be permitted to hold and manage any donations to the College of such investments.

The range of allowable investments may at any time be altered by a formal motion of the governing Board of the college.

Risk Warnings

The Finance Committee shall be responsible to report to the governing Board, in a timely manner, any perceived risks to the investment portfolio of the College and to take such remedial actions or interventions as directed by the governing Board. Risks shall be defined as the potential to lose all or part of the investment capital, or a conflict of interest which by arise amongst the investment parties.