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Venture Capital Fund Act 2019

Investment of VCF

28: Contents of statements of investment policies, standards, and procedures

You could also call this:

"What's in a statement about investment rules and procedures?"

Illustration for Venture Capital Fund Act 2019

When you look at a statement of investment policies, standards, and procedures, it must cover certain things. You will see information about how the Guardians choose people to appoint under section 29 and how they monitor their performance. You will also see information about how the Guardians make investment decisions when they invest part of the Venture Capital Fund themselves. You will find out how the Guardians decide what standards to use to assess the performance of the Venture Capital Fund as a whole. You will see what standards they use to report on the investment performance of the fund. You will also learn about their policies on ethical investment, which includes avoiding things that might harm New Zealand's reputation. The statement must also cover the management structure of the Venture Capital Fund and the governance framework for investment vehicles referred to in section 25. You will see information about the use of derivative financial instruments and how they manage different types of financial risks. The statement will also explain how they value investments that are not regularly traded at a public exchange and what investments are prohibited or restricted.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS210819.

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Topics:
Money and consumer rights > InvestingMoney and consumer rights > Financial regulationBusiness > Industry rulesBusiness > Financial management
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27: Guardians must establish investment policies, standards, and procedures, or

"Guardians must make rules for investing the Venture Capital Fund."

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29: Investment management, or

"Who helps manage the Venture Capital Fund's investments?"

28Contents of statements of investment policies, standards, and procedures

  1. A statement of investment policies, standards, and procedures must cover (but is not limited to)—

  2. the selection criteria that the Guardians use for deciding who will be appointed under section 29 and how the Guardians will monitor the performance of persons appointed under that section; and
    1. the selection criteria that the Guardians will use for making investment decisions (where the Guardians undertake the investment of any part of the VCF other than through a person appointed under section 29); and
      1. the determination of standards against which the performance of the VCF as a whole will be assessed; and
        1. standards for reporting the investment performance of the VCF; and
          1. ethical investment, including policies, standards, or procedures for avoiding prejudice to New Zealand’s reputation as a responsible member of the world community; and
            1. the VCF management structure; and
              1. the governance framework for the implementation and operation of VCF investment vehicles referred to in section 25; and
                1. the use of derivative financial instruments; and
                  1. the management of credit, liquidity, operational, currency, market, and other financial risks; and
                    1. the method of, and basis for, valuation of investments that are not regularly traded at a public exchange; and
                      1. prohibited or restricted investments or any investment constraints or limits.

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