Investment Procedures

The Vice President, Administration & International Development is responsible for the management of the investment portfolio. The Vice President, Administration & International Development may delegate the day-to-day management of the investment portfolio to the Executive Director, Finance & Chief Financial Officer (“the delegate”) or other competent manager.

On a regular basis, the delegate, will review the cash balances and cash requirements of the College.  Cash in excess of requirements for the day to day operations of the College will be invested to earn the College investment income. The decision on the type of investment and the term of the investment will be guided by the Investment Policy of the College and the following Investment Guidelines.

Investment Guidelines

The College will manage risk by following the investment guidelines as outline below:

1. The following are considered appropriate investments.
   
   
   
   1. Government of Canada and Provincial Bonds.
   
   
   2. Financial institutions with 100% BC Provincial guarantees. (Vancity)
   
   
   3. Investments from financial institutions which are covered by CDIC Insurance– Interest bearing accounts, fixed term deposits, Guaranteed Investment Certificates (GIC) and Banker's Acceptances (BA).
   
   
   4. All issuers must be rated a minimum of either R1-Mid by Dominion Bond Rating Service (DBRS) or AA at the time of investment.
   
   
   5. Savings Accounts of Big 5 Canadian Banks (BNS, TD, RBC, BMO,CIBC)
   
   
   6. It is expected that all the securities held should have an active market and therefore a valuation of the securities held will be based on their market value.
   
   
   
   


2. Diversification
   
   Investments will be diversified so that no single issuer shall exceed 50% of the total portfolio


3. Investment Term
   
   Maximum term of a single investment is not to exceed five years.


4. Prohibited Investments
   
   The use of derivative products to enhance the return of the investment portfolio is prohibited.


5. Investment Counsel
   
   
   
   1. Investment managers will provide recommendations subject to the guidelines to achieve diversification and shall ensure the funds are invested in quality securities.
   
   
   2. The investment Counsel's performance relative to the Investment Policy Statement's objectives will be reviewed annually.
   
   
   
   

6. Audit
   
   As part of the year-end audit investment balances will be confirmed.

Monitoring and Reporting

7. The Finance & Audit Committee of the Board is responsible for monitoring the College's investment performance and compliance with investment policy.  Annually, the Vice President, Administration & International Development or delegate will report to the Finance & Audit Committee on the performance of the investments and compliance to the Investment Policy and Procedures.