Legislative Assembly for the ACT: 2003 Week 3 Hansard (23 October) . . Page.. 4076 ..
What is the difference between 'Current Investments' and 'Non Current Investments';
Why are the amounts for Superannuation Investments in Table 7.2.1 different from the amounts for SPA Assets in Table 7.3.2;
In relation to asset allocation strategies, what is the difference between 'Strategic Asset Allocation' and what is described as the 'new investment configuration';
What has been the outcome of the implementation of the new investment configuration during 2002-03;
What will be the consequences for the SPA of the continuing implementation of the new investment configuration during 2003-04.
Mr Quinlan: The answer to the member's question is as follows:
Estimated SPA current investments are outlined in Budget Paper No. 4 2003-2004,
Estimated SPA non current investments are outlined in Budget Paper No. 4 2003-2004, pg 120.
Marketable securities and other investments that are held primarily for trading purposes are categorised as current investment assets, if they are expected to be realised within twelve months of the reporting date, otherwise they are categorised as non current assets.
Cash equivalents means highly liquid investments with short periods to maturity which are readily convertible to cash on hand at the investor's option and are subject to insignificant risk of changes in value, and borrowings which are integral to the cash management function and which are not subject to a term facility.
Table 7.3.2 outlines the estimated total assets of the SPA. Table 7.2.1 outlines the investment assets of the General Government Sector. SPA investment assets are total estimated assets less estimated receivables.
The Strategic Asset Allocation (SAA) refers to the long-term asset allocation exposure percentages that the SPA will manage to. These asset allocation exposures will give the SPA the highest probability of achieving the long term investment return objectives within risk tolerances.
The investment configuration refers to the actual structure of the SPA investment portfolio that will be utilised to achieve and maintain the SAA. This includes, for example, the number of external professional fund managers utilised for each asset class, their investment style, and the mix between active and passive management.
During 2002-03 the planning and structure for the new investment configuration was finalised.
During 2003-04 the new manager and investment service appointments to support the investment configuration will be finalised.
The outcomes from this process for the Territory will be the appointment of leading asset class specific fund managers to improve investment performance, increased flexibility and control of the substantial investment assets, better diversification of the investment