At the 2022 AGM, the Treasurer stated in his report that as a result of declining interest rates producing poor returns for our investments, and on recommendation of the Auditor, “the AASC executive will consult with an independent financial advisor to see if there is a better investment opportunity that fits within a low-risk category.”
Gus has consulted with a professional financial adviser and based on their advice, researched 11 comparable alternative investment opportunities which met our criteria of being low risk. He presented these to the committee and we concluded that that the FANZ Smart Beta 50/50 which had returns of 4.23% for a fee of 0.68% was the most attractive offering. We will therefore be investing $210,400 into these shares and will keep $350,000 in the bank to cover potential litigation, operating expenses, membership death self-insurance and philanthropic giving.
In the AASC Rules under 8.2 Funds, 8.2 c) states the Executive has authority to invest accumulated funds not immediately required for the Association objects. This relates to 8.3 Financial Objectives (covered it Appendix A). Appendix A identifies what we need to keep in reserve for possible unexpected costs. Gus has accounted for all of these in his projections.
For any more details or questions on this, please feel free to contact Gus directly.