Policy 17: Investment
To establish the investment approach for the Society for Teaching and Learning in Higher Education (STLHE or the Society).
2. Investment Approach
From time to time STLHE may have a surplus of funds that are not required for ongoing operating activities. These funds represent an asset to the organization and their prudent management should be dictated from two perspectives: maintaining minimal risk of the principle amount and earning a return.
The Treasurer and Board of Directors shall, on the advice of and with appropriate professional assistance, maintain and invest the Society’s Funds Balance in a prudent and effective manner, in accordance with the following:
- The Society’s Funds Balance may only be invested in secure, low-risk financial instruments (in Canadian funds) offered through a Canadian financial institution that is insured under the Canada Deposit Insurance Corporation. Such investment(s) may be made with more than one appropriate financial institution as may be deemed prudent from time to time.
- A return will consider a combination of savings accounts and Guaranteed Investment Certificates (GIC). The former provides ready access to the funds while the latter provides a higher rate of return.
- Minimum financial and operating risk with GIC’s will require laddering. Laddering consists of multiple GIC’s with varying maturity dates from 1 through 5 years.
- No more than one-third (1/3) of the Society’s Funds Balance shall normally be invested for a term exceeding one year (12 months).
- No more than one-third (1/3) of the Society’s Funds Balance shall normally be invested as principal in any single financial instrument or investment.
- The investment and management of the Society’s Funds Balance shall be undertaken in a manner designed to ensure that the Society’s ongoing financial and operational requirements are appropriately met, while also ensuring the Society’s long-term financial stability.
This policy was revised by the Board at its November 12, 2021 meeting.
The board approved this policy on March 25, 2021.