58Investment strategy

58 Investment strategy

58 Investment strategy

(1) STC must, subject to this Part and section 129A, determine and give effect to an investment strategy for the STC funds (the investment strategy) and a strategy for the prudential management of any reserves of the funds (the reserves strategy).

(2) The investment strategy must have regard to the circumstances of the STC schemes, including but not limited to the following—

(a) the risk involved in making, holding and realising, and the likely return from, the investments having regard to the schemes’ objectives and their cash flow requirements,

(b) the composition of the investments as a whole, including the extent to which the investments are diverse or involve exposure to risks from inadequate diversification,

(c) the liquidity of the investments having regard to the schemes’ cash flow requirements,

(d) the ability to discharge the existing and prospective liabilities under the STC schemes,

(e) any other matter which a trustee is required to consider in determining an investment strategy under the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.

(3) The reserves strategy must be consistent with the investment strategy and the ability to discharge the existing and prospective liabilities under the STC schemes (whether actual or contingent) as and when they fall due.

(4) In determining the reserves strategy, STC must have regard to any other matter which a trustee is required to consider in determining a reserves strategy under the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.

(5) STC may not contract out its functions under this section.

s 58: Am 2015 No 53, Sch 1 [8].