Knowledge Base

Investment Policy

Purpose:

This policy is established to ensure that funds which the Library generates by way of cash flows, surpluses, interests, reserves or any other source, are invested to provide optimal returns after due consideration of yield, term and security.

Scope:

This policy includes, but is not limited to trusts, donations, reserve funds, funds received from a municipality set aside specifically for the library, and any other excess Library cash balances that are either on deposit or invested.

Objectives:

The investment of all assets, including excess cash balances must satisfy the following investment objectives:

• A level of liquidity to provide the flexibility to adjust to changing market conditions.
• Maturity terms that ensure sufficient cash is available to meet the obligations of the library.
• Investment yields that maximize returns to ensure continued growth without the capital erosion by inflation.
• Investments that minimize financial risk.

Responsibilities:

Responsibility for investment of the trusts, reserve fund and any other cash or assets that are deemed excess to the daily operations of the library rests with the manager or Finance Committee as delegated by the Board. The responsibilities of the manager or Finance Committee with respect to the investment management include:

• Reporting the members who hold signing authorities for approval of the investments and account changes.
• Reviewing at least annually the performance of investments
• Reviewing annually this policy including a reassessment of the return expectations, risk tolerance and recommending changes to the Board
• Reporting to the board during the meeting.

Eligible Investment Guidelines

• Guaranteed Income Certificates (GICs) that are redeemable.
• Short term non-redeemable GICs that matures within a year.

Conflict of Interest

A conflict of interest is defined as any event or circumstance that impairs the ability of any member of the Board or designate, or any employee or consultant to render unbiased and objective advice regarding any investment decision of the portfolio. In such cases, the conflict must be fully disclosed on a timely basis and the member shall withdraw from the meeting during the discussion and voting on the investment decision.

Date Passed: November 30, 2023