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:
- An introduction to our purpose and our interpretation of our legislative requirements
- A list, and short explanation, of each of the investment policies informing the SIPSP
- Asset classes and selection criteria
- The benchmarks against which performance is measured
- Standards for reporting investment performance
- Our approach to Responsible Investment (see also Responsible Investment)
- The balance between risk and return in the portfolio;
- The Fund management structure;
- The use of derivative financial instruments, short selling and securities lending;
- Risk management;
- Valuation of unlisted assets; and
- 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 Policy | Includes guidelines for responding to media enquiries, Official Information Act requests, sponsorship and information management |
| Delegations Policy | How responsibilities are delegated from the Board to the CEO and to management |
| Derivatives Policy | Aims to implement effective controls and frameworks to ensure that all aspects of derivative use are effectively managed |
| Direct Investment Policy | Direct investments we make in investments not covered by the Portfolio Completion and Internally Managed Securities Policy |
| Diversity and and Inclusiveness Policy | Covers the Guardians’ approach to Diversity and Inclusiveness that affects all of our permanent and temporary employees |
| Externally Managed Investments Policy | How we invest with external investment managers |
| Human Resources Policy | Includes Employee Code of Conduct and Securities Trading Procedure |
| Investment Risk Allocation Policy | The asset classes we invest in, the value adding strategies we use, and the investment constraints we apply |
| Investment Valuation Policy | Establishes the approach taken to measure the fair value of all investments held by the Fund |
| Portfolio Completion and Internally Managed Securities Policy | How we ensure the Fund meets our desired risk allocations and the related management of internal investment mandates |
| Procurement and Outsourcing Policy | How we enter into major procurement contracts other than with external investment managers |
| Risk Management Policy | How we manage operational risks for the Guardians. Includes Internal Incident Process |
| Strategic Tilting Policy | A value added strategy we use to adjust the Fund's risk exposure in response to changes in expected returns |
| Travel and Sensitive Expenditure Policy | Controls and frameworks governing travel and sensitive expenditure |