Why worry re debt when we can borrow at 6.51% and achieve a return on investments of 16.5%?
• It is true that Monash has managed to achieve an excellent return on its Investments (Monash University Foundation) in the last 3 years. The investment portfolio is managed by commercial investment managers under contract and supervised by the Treasurer. However there is obviously no guarantee that this return will continue to be achieved. The risk profile of the investment strategy is conservative. • If Monash were to liquidate its investments, it could currently repay its debt. • Monash cannot borrow to invest and under Monash Directions 2025 wishes to become financially self reliant – reducing its reliance on debt. The financial strategy is to cap borrowings at around $315m and not to further increase debt from 2009 onwards. • It also needs to continue to comply with the benchmarks set by the Government.
