Financial Services

Investment Portfolio Policy

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Related policies or legislation

The University of Western Australia Act 1911

The University's Investment Portfolio purpose is to maximise the investment return on available capital for an agreed level of risk.

It does this in order to:

  • provide support to the purpose and mission of the University over the long term
  • provide security and preservation of the real value of capital for future generations
  • provide capital growth to support University growth projections
  • provide funds to support the University's short-term spending commitments
  • provide a reasonable level of funding stability from year to year.

The University's investments are managed through a pool structure, enabling the appropriate pooling of funds and the management of pool-based risk-return profiles with each pool operating under a specific investment objectives and spending policies, which combine to satisfy the overall objectives for the University's investments.

The University's current approved investment pool structure consists of:

  • Cash Pool
  • Short Term Pool
  • Long Term Pool
  • Property Pool
  • Sustainable Investment Pool (currently closed pending establishment).

From time to time, other specific investments may be acquired as deemed suitable for the specific source of funds.

University funds should be invested in the most appropriate Pool taking into consideration the type of funds, the period of time for which the funds are likely to be held, any specific funding conditions and requirements and the individual contributor's sensitivity to investment income volatility. Financial Services can provide guidance on the investment of specific funds.

Investment income is distributed by Financial Services on a calendar-year basis to all funds nominated as entitled to receive investment income based on the average opening monthly balance at an approved distribution rate. The entitlement to receive investment income is generally determined at the time of creating a project grant taking into account the specific conditions of the funds and the University's guidelines for eligibility.

The University also supports saving funds for specific strategic initiatives and enables general operating funds to be placed in an interest earning deposit in accordance with University Interest Earning Deposit procedures.

Policy statement

The University's investments are managed under a formalised Senate approved Investment Policy Statement setting out the investment guidelines such as investment restrictions, asset allocation, performance objectives, performance benchmarks, spending policies for each investment pool and governance and management requirements.

The policy excludes investments of a strategic and/or intellectual property nature made by the University outside the operation of the University Investment Portfolio.

The University of Western Australia Act 1911 requires the investment of University monies as trust funds. Therefore, the investment of University funds must comply with Part III of the Trustees Act 1962, in particular:

  • meet the prudent person rule
  • be reviewed at least once each year.

Senate is responsible for approving the University's investment policy and accordingly the Investment Policy Statement provides the overarching policy under which University investment management occurs.