Attachment A UWA Investment pool structure Long Term Medium Term Short Term Cash The pool contains funds The pool represents The pool represents the The pool consists of a permanent or long funds of a working capital of the of a core cash term nature. nature and University and is component may include a portion considered to be of short including bank of the University’s term nature and accounts, term Pool Structure working capital that has investments are managed deposits and cash a medium term horizon to provide liquidity. funds under and a moderate level of management. risk tolerance. Growth: 80% Growth: 40% Growth: 0% Strategic Asset Defensive: 100% Allocation Defensive: 20% Defensive: 60% Defensive: 100% CPI+5% CPI+3.5% CPI+2% RBA Cash Rate Performance Over rolling 12 Objective Over rolling 10 years Over rolling 5 years Over rolling 3 years months Risk Loss: 1 in 5 yrs or Risk Loss: 1 in 8 yrs or Risk Loss: 1 in 25 yrs or Risk Objective Risk Loss: nil or 0% 20% 12% 4% Time Horizon 8+ years 4 7 years 1 3 years 0 - 1 year – – To exceed (after fees) To exceed fees) To exceed (after fees) the the return on the the return on the return on the weighted To equal (after Performance weighted composite weighted composite composite strategic fees) Bloomberg Benchmark strategic benchmark strategic benchmark benchmark over rolling Bank Bill Index over rolling 10yr periods over rolling 5yr periods 3yr periods Operational Spending Policy Fixed 5% Reducing Capital Reducing Capital Liquidity
Attachment A UWA Investment pool structure Long Term Medium Term Short Term Cash Pool Structure The pool contains funds of a permanent or long term nature. The pool represents funds of a nature and may include a portion of the University’s working capital that has a medium term horizon and a moderate level of risk tolerance. The pool represents the working capital of the University and is considered to be of short term nature and investments are managed to provide liquidity. The pool consists of a core cash component including bank accounts, term deposits and cash funds under management. Strategic Asset Allocation Growth: 80% Growth: 40% Growth: 0% Defensive: 100% Defensive: 20% Defensive: 60% Defensive: 100% Performance Objective CPI+5% CPI+3.5% CPI+2% RBA Cash Rate Over rolling 10 years Over rolling 5 years Over rolling 3 years Over rolling 12 months Risk Objective Risk Loss: 1 in 5 yrs or 20% Risk Loss: 1 in 8 yrs or 12% Risk Loss: 1 in 25 yrs or 4% Risk Loss: nil or 0% Time Horizon 8+ years 4 – 7 years 1 – 3 years 0 - 1 year Performance Benchmark To exceed (after fees) the return on the weighted composite strategic benchmark over rolling 10yr periods To exceed fees) the return on the weighted composite strategic benchmark over rolling 5yr periods To exceed (after fees) the return on the weighted composite strategic benchmark over rolling 3yr periods To equal (after fees) Bloomberg Bank Bill Index Spending Policy Fixed 5% Reducing Capital Reducing Capital Operational Liquidity
UP09-13-Investment-Attachment-A.docx