Financial Investment Plan

Purpose

This investment plan outlines the Australasian College for Infection Prevention and Control (ACIPC)’s approach to investing surplus funds in term deposits. It supports the College’s financial strategy by ensuring stability, liquidity, and modest income generation while safeguarding capital.

Investment Objectives

The term deposit strategy is designed to:

• Preserve capital by avoiding high-risk or speculative investments;
• Provide predictable and stable returns;
• Maintain adequate access to liquidity for operational needs;
• Support the long-term financial sustainability of ACIPC;
• Comply with ACIPC’s Financial Investment Policy and relevant legislation.

Scope of Funds for Investment

Surplus funds not immediately required for operational expenses, liabilities, or short-term commitments may be invested in term deposits. These funds include:

• Operating surpluses;
• Reserves allocated for future projects;
• Strategic contingency funds.

Investment Principles

All investments under this plan must comply with the following principles:

• Security: Prioritise the preservation of capital through low-risk investments.
• Liquidity: Stagger maturity dates to ensure regular access to cash.
• Diversification: Spread funds across multiple institutions and maturity dates to reduce risk and improve flexibility.
• Reputation: Only invest with APRA-regulated Australian banks or financial institutions with an acceptable credit rating.
• Return: Optimise interest income while remaining within the approved risk profile.

Structure of Term Deposits

To ensure liquidity and continuity, funds will be allocated using a laddering strategy:

• Maturities are staggered to ensure regular access to funds.
• Reinvestment decisions including the actual term will be made upon maturity based on interest rate conditions and ACIPC’s cash flow needs.

Authorised Institutions

Term deposits may only be placed with Australian banks regulated by the Australian Prudential Regulation Authority (APRA).

Governance and Approvals

• The Executive Management Committee will oversee investment implementation as decided by the Board.
• The Board will approve any changes to this strategy or institutions used.
• Investment decisions must align with the approved investment and financial policies and the Board’s strategic plan.

Monitoring and Review

• Interest rates and maturity schedules will be reviewed by the Board as deposits are due for maturity.
• A summary of investments (amount, institution, maturity date, interest rate) will be included in monthly financial reports to the Board.
• The investment plan will be reviewed annually to ensure relevance and effectiveness, and reported to members at the Annual General Meeting.