Policies

The key policy document for the Guardians and Fund is the Statement of Investment Policies, Standards and Procedures (SIPSP). The SIPSP, which is required under our governing legislation, establishes the framework for the governance and investment of the Fund. The SIPSP includes:

  1. An introduction to our purpose and our interpretation of our legislative requirements
  2. A list, and short explanation, of each of the investment policies informing the SIPSP
  3. Asset classes and selection criteria
  4. The benchmarks against which performance is measured
  5. Standards for reporting investment performance
  6. Our approach to Responsible Investment (see also Responsible Investment)
  7. The balance between risk and return in the portfolio;
  8. The Fund management structure;
  9. The use of derivative financial instruments, short selling and securities lending;
  10. Risk management;
  11. Valuation of unlisted assets; and
  12. A discussion of our investment constraints.

Sitting beneath the SIPSP, and referenced in it, are our Responsible Investment Framework, a suite of policies relating to the investment of the Fund, and other policies that govern the Guardians' operational practices.

Communications PolicyIncludes guidelines for responding to media enquiries, Official Information Act requests, sponsorship and information management
Delegations PolicyHow responsibilities are delegated from the Board to the CEO and to management
Derivatives PolicyAims to implement effective controls and frameworks to ensure that all aspects of derivative use are effectively managed
Direct Investments PolicyDirect investments we make in investments not covered by the Portfolio Completion and Internally Managed Securities Policy
Diversity and and Inclusiveness PolicyCovers the Guardians’ approach to Diversity and Inclusiveness that affects all of our permanent and temporary employees
Externally Managed Investments PolicyHow we invest with external investment managers
Human Resources PolicyIncludes Employee Code of Conduct and Securities Trading Procedure
Investment Risk Allocation PolicyThe asset classes we invest in, the value adding strategies we use, and the investment constraints we apply
Investment Valuation PolicyEstablishes the approach taken to measure the fair value of all investments held by the Fund
Portfolio Completion and Internally Managed Securities PolicyHow we ensure the Fund meets our desired risk allocations and the related management of internal investment mandates
Procurement and Outsourcing PolicyHow we enter into major procurement contracts other than with external investment managers
Risk Management PolicyHow we manage operational risks for the Guardians. Includes Internal Incident Process
Strategic Tilting PolicyA value added strategy we use to adjust the Fund's risk exposure in response to changes in expected returns
Travel and Sensitive Expenditure PolicyControls and frameworks governing travel and sensitive expenditure