The overall objective of our investment portfolio is to make a reasonable contribution to the current and long term funding requirements for our Cemetery. The portfolio is to be managed in a manner that maximizes return without jeopardizing its principal goal of preserving the capital needed to provide a continued stream of income over the longer term. Within the context of the above requirements, a moderate level of variability in returns will be allowed under the provision that all risks taken are consistent with the objective of long term capital preservation.
The By-Law requirements for the Company must be adhered to for each investment.
At least 20% of the Corporation’s cash and trust funds must be in instruments of the type that are guaranteed by the Government of Canada, the Canada Deposit Insurance Corporation, a Province of Canada or one of the five largest Canadian chartered banks.
The total non-guaranteed securities from one issuer are not to exceed 10% at cost or 15% of market value of our total investment portfolio. Those percentages are in addition to and do not include any security holdings in the same name held in a mutual fund or ETF which our Company owns.
The total non-guaranteed investments in any one S&P/TSX Composite sector are not to exceed 35% at fair market value of our total investment portfolio. Those percentages are in addition to any holdings of the same security held in a mutual fund or ETF which our Company owns.
Investment in mutual funds or ETFs should be restricted to medium risk funds issued by high quality corporations that have been in business for at least 10 years, such as the big Canadian banks.
The assets held by the Company are not to include any derivative instruments of a speculative nature. No investment shall be made with borrowed funds, nor shall short selling of securities be permitted. Any investment or activity that may possibly expose the Company to liability beyond the amount invested is prohibited.
Domestic Canadian investments must be purchased in Canadian dollars. If non-Canadian investments are purchased they must be purchased in Canadian dollars and fully hedged.
If a Canadian sector mutual fund or a Canadian sector ETF is purchased which contains some foreign content then it is satisfactory to use those funds that permit the fund manager to hedge or not hedge on a tactical basis. A Canadian sector fund by definition must have 50%, or more, Canadian content. If a foreign sector fund is purchased it must be fully hedged at all times.
When surplus funds are available for investment, an investment is nearing maturity or a need arises to review a specific investment for some reasonable purpose the Treasurer will provide the details in writing (usually by e-mail) to the Committee Chair and to every other committee member.
When the Investment Committee members receive the written information about a needed investment decision, they will decide jointly by e-mail or telephone whether or not the committee needs to meet in person to decide about the matter in question. If they decide a meeting in person is not needed each member will convey briefly his/her personal wishes or decision about the matter to the Treasurer and the Chair, by telephone, e-mail or in person.
With investments in bank Guaranteed Investment Certificates (GIC’s) the normal course of action should be to invest with one of the major Canadian banks, where the Company’s bank account is located. Having all GIC’s with the same bank gives our company much greater negotiating power to gain higher rates beyond the posted rates on any given day.
The portion of the Company’s invested assets which may be in non-guaranteed instruments can be put in common stock shares, preferred stock shares, corporation bonds, Government of Canada Bonds, Provinces of Canada Bonds, mutual funds, ETFs and REITs.
The Treasurer of St. Ninian’s Cemetery Care Company is to maintain an up-to-date list of all investments. After each month end, separate totals of each investment category and sector plus an overall total of all categories must be calculated using the figures for the previous month-end. All such totals must show cost and market value. Percentage allocations, as a percent of the total portfolio, are to be shown for each individual investment at cost and fair market value.
The Investment report must group investments by sector. The percentage allocation for the sector as a percentage of the total portfolio is to be shown at cost and fair market value.
The up-to–date list of investments is to be provided in printed form or by e-mail attachment to each member of the Investment Committee not less than quarterly. It will be conveyed to the individual committee members via the Committee Chairperson or directly by the Treasurer. It should be sent within 15 calendar days after the quarter end.
An investments report the same as or similar to the one detailed in Clauses 12 and 13 above must be sent to the Management Committee of the Cemetery on a quarterly or other required basis. The Management Committee can specify their exact information needs if the regular report is insufficient.
This Policy, which originated on December 16, 2015, has been amended effective May 17, 2016