Investment Management Policy
Intent and Interpretation
This investment policy governs the investment of all financial assets of the University of
Guelph Professional Staff Association. Investments shall be made with the primary
objectives of:
• Safety and preservation of principal
• Maintenance of sufficient liquidity to meet operating needs
• Maximization of yield on the portfolio.
All investments shall be designed and managed in an ethical and responsible manner and in
accordance with the Association by-laws.
Ethics and Conflict of Interest
Directors, officers or employees involved in the investment process must disclose any
personal business activity or financial/investment positions that could be related to the
performance of the investment portfolio or that could conflict with the proper execution
and management of the investment program or that could impair their ability to make
impartial decisions.
Indemnification
Directors, officers or employees, acting in accordance with written policies and procedures
and exercising due diligence, shall not be held personally responsible for a specific
security’s credit risk or market price changes, provided that these deviations are reported
immediately and the appropriate action is taken to control adverse developments.
PROCEDURE
1. Funds not currently required for immediate operating and/or capital needs may be
invested.
2. Cash balances from all sources may be consolidated to maximize investment earnings.
3. Allowable investments include and are limited to:
Cash and equivalents:
• Government of Canada Treasury Bills
• GIC’s, cash or deposit receipts, deposit notes, certificates, acceptances and other
similar investments issued or endorsed by any chartered bank to which the Bank
Act (Canada) applies.
4. Investments will be matched with anticipated cash flow requirements. The investment
portfolio will be managed in such a way as to mitigate against the variability of interest
rates and as such, no portion of the portfolio will be invested for a term which exceeds
three (3) years.
5. Ideally, investments will be bought with a “buy and hold” strategy in order to maximize
return. However, investments may be sold before they mature in the following
instances:
• A security with declining credit may be sold early to minimize potential loss of
principal
• A change in securities which would improve the quality, yield or target duration
of the portfolio
• Liquidity needs of the organization require the investment to be sold.
6. The Finance Committee will regularly receive reports on the investment portfolio and
their rate of return. The report will include: type of investment, purchase date, purchase
amount, maturing amount, maturity date and interest rate.
7. The investment results will be incorporated into the Treasurer’s Report on an ongoing
basis.
Effective Date: November 22, 2012