BGS Funds Review

(25 September 2018) and the BGS Bursary Fund Investment Strategy (6 December 2018) prescribe the governance obligations of the Finance Committee for funds held and invested in the School’s DGR Funds.

The objective of the BGS Bursary Fund is to generate sufficient earnings from its corpus base to fully fund needs-based bursaries, without eroding said corpus, or requiring financial subsidy from the operating cash flow of the School.

At 31 December 2022, the combined funds of the School’s DGR Funds were invested in the Queensland Investment Corporation (‘QIC’) Long Term Diversified Fund, ANZ Bank (for immediate-needs liquidity) and shares as follows:

QIC Long Term Diversified Fund Strategic Asset Allocation

Alternative assets comprises direct real estate, direct infrastructure, private debt, private equity, insurance-linked securities and liquid managed funds.

QIC Long Term Diversified Fund Performance

QIC Long Term Diversified Fund (‘QIC Fund’) performance is summarised as follows:

• Positive average earnings of 2.59% for the three years ended 31 December 2022.

• Positive average earnings of 4.2% for the five years ended 31 December 2022

• Positive average earnings of 6.54% for the 10 years ended 31 December 2022.

The QIC Fund seeks to achieve an investment return of the Bloomberg AusBond Bank Bill Index + 3% p.a after expenses but before QIC management fees and tax over rolling five-year periods. The QIC Fund is classified as a medium product risk, reflecting an expectation that the distribution of possible annual returns has a standard deviation of between 5-10%.

Investments in Shares

At 31 December 2022, the following investments in donated shares were held by the DGR Funds:

Application of Funds

DGR Funds were applied as follows throughout the year ended 31 December 2022: