NUSSU Investment Information

FAQs

Qn: Why did NUSSU opt for investing with NUS Investment Office over other forms of investment or with other organisations which could potentially offer higher returns?

NUSSU feels that working with NUS IVO puts us in a better position in terms of accountability and security as we were able to secure assurance from OFS and IVO that there will be transparency measures in place in the course of this investment. For example, OFS and IVO will inform NUSSU within one month after declaration of the short term investible fund of the interest earned. Working with OFS and IVO will also allow us greater flexibility in the withdrawal of funds as we will be able to withdrawal within a 90 day notice period without being imposed a penalty. This allows us to maintain liquidity of our reserve funds while enjoying returns in excess of the 3-month Singapore Dollar Fixed Deposit interest rates. Lastly, with our long standing good working relations, NUSSU Council is on the whole most comfortable working with OFS and IVO.

Qn: How are the returns going to be used? If they are not utilised, where will they go into?

The returns from investment would be used in many ways depending on the management committee of the respective constituent clubs. Possible ways in which they could be used include setting up more bursary awards for students, supporting greater number and variety of welfare or student interest activities. You can always approach the management committee of your constituent club to find out more.

If returns are not utilised, these funds will be continually invested in Short Term investible funds.

Qn: NUSSU has such a huge amount of reserves that are always sitting there. Why isn't anything done to provide for needy students with this amount of funds?

NUSSU has her own Bursary Award and Book Grant scheme administered by NUS Students' Fund to cater to needy students which opens for application at the beginning of every semester. Besides NUS Students' Fund, Faculties and faculty clubs also have their own Bursary awards to assist needy students.

More information of the NUS Students' Fund Bursary Award and Book Grants can be found at: http://community.nus.edu.sg/nussf/main/Application.html

Qn: How did the reserves accumulate into such a sizeable amount? What is the purpose of having reserves and how has NUSSU been using these reserves?

Our reserves have accumulated to its current size from a combination of careful spending resulting in the accumulation of savings throughout NUSSU's years of establishment .

These reserves can be used and have been used in various ways such as:

1. Protection from rainy days and emergencies

• These reserves serve as a back-up should our income fall short of our operating needs. For example, when major sponsors pull out or we are unable to garner enough support from potential sponsors, funds from the reserves will be utilised instead.

2. Purchase of assets and capitalised items

• The reserves were recently used to furnish the newly renovated NUSSU offices, necessitated by the renovation of YIH.
• The refurbishment of the new NUSSU Student Lounge was also carried out with the funds drawn from the reserves.

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Qn: Are our subscription fees too high since NUSSU is more often than not in surpluses instead of deficits? As such, are we able to lower or even waive the subscription fees?

The size of our reserves gives a misleading impression on the subscription fees collected by NUSSU. We cannot emphasis enough that much of the surpluses which contributed to the reserves did not come from subscription fees but rather through the marketing efforts of the various student volunteers.

This can be seen from the brief breakdown of NUSSU finances for the previous financial year which is representative of most of the other years. In financial year 2009, subscription fees amounted to 28% of the revenue (about $200,000) NUSSU received. In contrast, about $400,000 was spent on student life and student welfare initiatives which was about 70% of our total expenditure.

While we are able to rely on generous sponsorship thus far, we cannot be entirely dependent on such avenues given the uncertain and volatile economy, Hence NUSSU still has to rely on subscriptions fees to support her operations.