PURPOSE
The purpose of this policy is to establish a clear investment accountability framework for Nicola Valley Institute of Technology (NVIT) which enables investment of funds in the most appropriate, effective and efficient manner.
SCOPE
1. This policy applies to all investments made by NVIT;
2. This policy is limited by British Columbian and Canadian laws governing investment and other laws of general application.
POLICY
1. Operating funds in excess of the amounts needed to meet anticipated cash requirements of the Institute will be invested until such time as they are required.
2. Management determines anticipated cash requirements on a quarterly basis and a monthly minimum cash balance for operating purposes is determined. Cash forecasts are prepared monthly and if projections warrant it, new investments are purchased.
3. Operating and Endowment funds will be invested in separate portfolios.
4. Investments will be in compliance with provincial legislation and guidelines and will be established and maintained through the Chief Financial Officer of NVIT.
5. All investments will be made with the following objectives in priority order:
a. Preservation of capital;
b. Management of portfolio risk;
c. Achieve high investment returns.
6. Investments can be made into any prudent securities including guaranteed investment certificates, government bonds or corporate bonds (minimum of AAA rated). Board approval is required prior to investment in other types of securities.
7. Investment portfolios will be sufficiently liquid to fund all disbursement obligations and commitments while maintaining diversification and sufficient returns.
8. Where investment products have a degree of market volatility, recovery plans in the event of an economic downturn will be established.
9. NVIT’s Chief Financial Officer will provide to the Board, through the Audit & Risk Management Committee, an annual Investment Strategy report which will include a report on the performance and status (including benchmarks/comparatives) of current investments.
10. The Chief Financial Officer will provide oversight on selection of investment managers and evaluations of their performance and will develop and maintain appropriate conflict of interest guidelines.
RELEVANT LEGISLATION
College & Institute Act ~ http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/00_96052_01
Trustee Act ~ http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/00_96464_01
Securities Act ~ http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/00_96418_01
RELATED DOCUMENTS
Ministry of Finance’s Investment Governance Good Practice Checklist
http://www.gov.bc.ca/caro/attachments/investment_governance_good_practice_cecklist_mar_09.pdf
LINKS TO RELATED POLICIES AND WEBSITE
5.3 Board Audit & Risk Management Committee