Investment

Royal Roads University Policy

Policy Number: 
D1080
First implemented: 
September 17, 2010
Amended: 
March 29, 2019
Approved By: 
Board of Governors
Office of Oversight: 
VP & CFO

Purpose

The purpose of this policy is to provide an investment framework for Royal Roads University and the Royal Roads University Foundation to effectively maintain, manage, and enhance the investment portfolios.

Authority

In accordance with Section 57 of the University Act a university board (through its delegates) is authorized to:

  1. invest money belonging to the university and available for investment, and
  2. must, when investing under paragraph (1), make investments that a prudent person would make.

Investment Objectives

The investment objectives of the University and the Foundation differ from each other and are outlined below.

University

The primary objectives of the investment of assets for the University are to ensure that funds are invested to meet:

  1. Short term liquidity requirements (generally within one year for regular operations or other planned spending initiatives);
  2. Medium term requirements to finance the University’s capital and revenue investments (generally within one to five years for future operating or capital project commitments); and
  3. Long term requirements for investments to exceed the target real rate of return, within acceptable risk levels (generally where funds are not to be expended in the next five years).

 Foundation

The primary objectives of the investment of assets for the Foundation are to ensure that funds are invested to meet:

  1. Preservation of capital in real terms; and
  2. Generation of sufficient annual cash flow to meet foundation disbursement objectives

Investment Governance Guidelines (IGG) and Strategic Investment Portfolio Plan (SIPP)

The IGG  governs the management of the University and Foundation investment portfolios.  The SIPP outlines the specific investing strategy for each investment portfolio.  The IGG and the SIPP shall be reviewed and approved at least annually and as required to ensure they continue to meet the University and Foundation investment objectives.

Investment Performance and Investment Management

Investment performance of the investment portfolios and the external managers shall be assessed by the Board at least annually in accordance with the IGG.  Based on the annual review, the Vice-President & CFO may recommend either to continue with the appointed investment manager or initiate a selection process for a new investment manager.  The selection of an investment manager shall be made in a prudent manner, using fair selection and evaluation criteria developed for that process.

Responsibilities

The Board

The Board shall:

  1. Review the Investment Policy at least annually and make revisions where appropriate;
  2. Review the IGG and SIPP for the University and the Foundation at least annually and make revisions if necessary;
  3. Approve, monitor and replace the investment managers as appropriate;
  4. Consider how ESG issues are incorporated into the investment decision making process;
  5. Review the performance of the external managers at least annually; and
  6. Review the performance of the investment portfolios at least annually.

The Office of the Vice-President and CFO

The Office of the Vice-President and CFO shall:

  1. Make recommendations on changes to the IGG and SIPP for the University and the Foundation for consideration by the Board as appropriate;
  2. Recommend to the Board, for appointment, suitably qualified external professional investment manager(s);
  3. Liaise with and review performance of external professional investment managers at least annually;
  4. Review performance of the investment portfolios on a quarterly basis and provide performance reports to the Board at least annually; and
  5. Ensure accounting for the investment portfolios in accordance with established accounting guidelines.

The Vice-President and CFO will ensure that the investment managers shall:

  1. Be accountable for the investment of the assets allocated in accordance with this Policy, the IGG, and SIPP;
  2. Comply with the terms of the investment manager agreement;
  3. Meet with the Board as required and provide written reports regarding past performance and future strategies at least annually;
  4. File an annual compliance report; and
  5. Advise the Board on an on-going basis of any change in the organization, personnel or investment process where the change is material to the portfolio being managed by the Fund.

Related Documents

Corporate Social Responsibility Policy

Dates

2010 09 17      Board Approval

2010 09 17      Implementation

2015 02 23      Review Performed

2018 12 14      Review Performed and Board Approval

2019 03 29      Board Approval