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

6 - 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 7 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

Approval Details

Policy Sponsor

Deputy Vice Chancellor, Services and Resources

Approval Authority

Deputy Vice Chancellor, Services and Resources

Date for next review

01/04/2016

Revision History

Version

Approval date

Implementation date

Details

Author

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