INVESTMENT POLICY V4 Approved: March 5, 2003 Revised: December 21, 2011 Policy No: B - 08-20 Motion No: 2011-50 This policy replaces policy B-08-20 approved March 5, 2003 by motion no. 2003-12 and approved January 9, 2008 by motion no. 2008-04. Governance: It is the business of the Foundation to accumulate excess cash balances that are not required for short term operations. The Foundation uses an investment program to earn additional capital to fulfill its Mission. Therefore, excess funds are to be invested in approved products to earn interest above the amount that would be earned if left in the Foundation's bank accounts. Policies and practices governing the investment of funds of Orillia Soldiers' Memorial Hospital Foundation (the "Foundation") are the responsibility of the Finance and Audit Committee (the "Committee") of the Foundation. The Committee is responsible to the Board of Directors of the Foundation. Foundation management will arrange for appropriate reporting of investment activities, results and compliance to the Committee. Purpose: The investment policy governs the manner in which Foundation funds are to be invested. The intention of the policy is to guide investment strategies and purchase decisions as approved by the Foundation Board, and to provide the Committee with a process that reasonably ensures an appropriate return on investment, while minimizing the risk inherent in all investments. The primary goals of the Foundation are to provide future funding for the Hospital's programs and services and to provide financial stability to the Foundation and Hospital. The investments of the Foundation are to be managed in order to achieve the following objectives: (a) preserve capital and minimize risk; (b) (c) maintain liquidity necessary to meet the cash requirements of the Foundation and to support the grants program of the Orillia Soldiers' Memorial Hospital; generate a reasonable rate of return commensurate with risk. Approval: This policy has been approved by the Foundation's Board of Directors. Investing activities must be executed, reported and approved as outlined in this policy. Policy: Investment Objectives : The primary objective is to invest cash holdings in a manner as authorized by the Board of Directors and in accordance with the Trustee Act. Investment Guidelines: Investments will only be made in certain Bank, Money Market, Government of Canada products and investment grade Provincial and Corporate bonds. The Foundation will only make investment purchases through approved financial institutions or dealers.
Responsibilities and Approvals: It is the responsibility of the Committee to: (a) recommend the appropriate investment philosophy, investment objectives, and policy statement; (b) (c) (d) monitor the performance of the Foundation's investments; identify whether the Foundation has excess funds available for investment; invest any excess funds in accordance with the guidelines established in this policy. The Manager, Finance and Administration is authorized to manage the investing activities. For each investment, one approval is required from either the Executive Director or Treasurer. Procedure: Review and Analysis: On a semi-annual basis, the Manager, Finance and Administration will prepare an Investment Report for review by the Committee. The Investment Report will provide details of investment balances and month-to-date and year-to-date investment income compared to budgeted amounts. A brief narrative of results to date will also be provided. It is the responsibility of the Committee, on a semi-annual basis, to; (a) discuss cash flow estimates with the Manager, Finance and Administration, to assist in determining the amount and timing of investment products to be purchased; (b) (c) review investing activities including monitoring the investment terms associated with individual investment products purchased. Specifically, when dealing with duration, duration should vary but should not exceed 60 months for non-endowed funds; ensure that all investments satisfy the guidelines as established above. Asset allocation within the group of products outlined above are at the discretion of the Committee. Investment Products : Minimum Rating Maximum Limit Money Market Securities: Government of Canada N/A See Appendix 1-A Banker's acceptances R-1 mid See Appendix 1-A Securitized Paper (bank sponsored) R-1 high See Appendix 1-A Commercial Paper R-1 low See Appendix 1-A Fixed Income Securities: Government of Canada N/A See Appendix 1-A
Provincial Bonds A Low / A- See Appendix 1-A Corporate Bonds A Low / A- See Appendix 1-A Canadian Bank and Trust Schedule 1 Bank and See Appendix 1-A Term Deposits Trust Subsidiaries* *See Appendix 1-B for detailed listing Schedule 2 Bank and See Appendix 1-A Trust Companies Guaranteed by CDIC* Records and Accounting: Records of investing activities including matured and outstanding investments will be held and maintained by the Foundation, which is also responsible for ensuring that the investing transactions are accounted for and disclosed in accordance with generally accepted accounting principles. Evaluation of Performance and Strategies: The results of investing activities will be measured in terms of the net investment income recorded in the consolidated results of operations compared to budget. Policy Review Procedures: The Committee shall review the Investment Policy annually. The Committee will make any recommendations it considers advisable to the Board with respect to the policy's confirmation or amendment. Conflict of Interest and Disclosure Requirements: No person directly or indirectly responsible for the investment activities of the Foundation shall knowingly permit his/her personal interests to conflict with his/her responsibilities in respect of the Foundation. Any potential conflict must be identified to the Committee.
Appendix 1-A Investment Products : Minimum Rating Maximum Limit Money Market Securities: Government of Canada N/A No limit Banker's acceptances R-1 mid No limit Securitized Paper (bank sponsored) R-1 high No limit Commercial Paper R-1 low $100,000 per issuer Fixed Income Securities: Government of Canada N/A No limit Provincial Bonds A Low / A- No Limit (not more than 25% of portfolio to any single province) Corporate Bonds A Low / A- 20% (not more than 5% of portfolio to any individual security, not more than 15% to any single issuer) Canadian Bank and Trust Schedule 1 Bank and No limit in total Term Deposits Trust Subsidiaries* $3,000,000 per issuer Schedule 2 Bank and Trust Companies Guaranteed by CDIC* $100,000 per issuer *See Appendix 1-B for applicable list
Schedule 1 Bank and Trust Subsidiaries Bank of Montreal Bank of Montreal Mortgage Corporation Bank of Nova Scotia (The) BMO Trust Company Canadian Imperial Bank of Commerce Canada Trust Company (The) CIBC Mellon Trust Company CIBC Mortgages Inc. CIBC Trust Corporation National Bank of Canada National Bank Trust Inc. National Trust Company Royal Bank of Canada Royal Bank Mortgage Corporation Royal Trust Company (The) Royal Trust Corporation of Canada Scotia Mortgage Corporation TD Mortgage Corporation TD Pacific Mortgage Corporation Toronto-Dominion Bank (The) Appendix 1-B Schedule 2 Bank and Trust Companies AGF Trust Company Amex Bank of Canada B2B Trust Bank of China (Canada) Bank West Bridgewater Bank Caledon Trust Company Canadian Tire Bank Canadian Western Trust Company Citibank Canada Citizens Bank of Canada Community Trust Company Computershare Trust Company of Canada Concentra Financial Services Association CS Alterna Bank CTC Bank of Canada Desjardins Trust Inc. DirectCash Bank Dundee Bank of Canada Effort Trust Company (The) Equitable Trust Company (The) Equity Financial Trust Company First Data Loan Company, Canada First Nations Bank of Canada General Bank of Canada
Habib Canadian Bank Home Trust Company HomEquity Bank Household Trust Company HSBC Bank Canada HSBC Mortgage Corporation (Canada) HSBC Trust Company (Canada) ICICI Bank Canada Industrial Alliance Trust Inc. Industrial and Commercial Bank of China (Canada) ING Bank of Canada Investors Group Trust Co. Ltd. Jameson Bank Korea Exchange Bank of Canada Laurentian Bank of Canada Laurentian Trust of Canada Inc. LBC Trust League Savings and Mortgage Company M.R.S. Trust Company Manulife Bank of Canada Manulife Trust Company Maple Trust Company MBNA Canada Bank MCAN Mortgage Corporation Mega International Commercial Bank (Canada) MonCana Bank of Canada Montreal Trust Company of Canada Natcan Trust Company Pacific & Western Bank of Canada Peace Hills Trust Company Peoples Trust Company President's Choice Bank RBC Dexia Investor Services Trust ResMor Trust Company Shinhan Bank Canada State Bank of India (Canada) Sun Life Financial Trust Inc. UBS Bank (Canada) Valiant Trust Company From the Canadian Deposit Insurance Corporation http://www.cdic.ca/members.html and Department of Finance Canada http://www.fin.gc.ca/toc/2001/bank_-eng.asp.
INVESTMENT POLICY V4 Approved: March 5, 2003 Revised: December 21, 2011 Policy No: B - 08-20 Motion No: 2011-50 This policy replaces policy B-08-20 approved March 5, 2003 by motion no. 2003-12 and approved January 9, 2008 by motion no. 2008-04. Governance: It is the business of the Foundation to accumulate excess cash balances that are not required for short term operations. The Foundation uses an investment program to earn additional capital to fulfill its Mission. Therefore, excess funds are to be invested in approved products to earn interest above the amount that would be earned if left in the Foundation's bank accounts. Policies and practices governing the investment of funds of Orillia Soldiers' Memorial Hospital Foundation (the "Foundation") are the responsibility of the Finance and Audit Committee (the "Committee") of the Foundation. The Committee is responsible to the Board of Directors of the Foundation. Foundation management will arrange for appropriate reporting of investment activities, results and compliance to the Committee. Purpose: The investment policy governs the manner in which Foundation funds are to be invested. The intention of the policy is to guide investment strategies and purchase decisions as approved by the Foundation Board, and to provide the Committee with a process that reasonably ensures an appropriate return on investment, while minimizing the risk inherent in all investments. The primary goals of the Foundation are to provide future funding for the Hospital's programs and services and to provide financial stability to the Foundation and Hospital. The investments of the Foundation are to be managed in order to achieve the following objectives: (a) preserve capital and minimize risk; (b) (c) maintain liquidity necessary to meet the cash requirements of the Foundation and to support the grants program of the Orillia Soldiers' Memorial Hospital; generate a reasonable rate of return commensurate with risk. Approval: This policy has been approved by the Foundation's Board of Directors. Investing activities must be executed, reported and approved as outlined in this policy. Policy: Investment Objectives : The primary objective is to invest cash holdings in a manner as authorized by the Board of Directors and in accordance with the Trustee Act. Investment Guidelines: Investments will only be made in certain Bank, Money Market, Government of Canada products and investment grade Provincial and Corporate bonds. The Foundation will only make investment purchases through approved financial institutions or dealers.
Responsibilities and Approvals: It is the responsibility of the Committee to: (a) recommend the appropriate investment philosophy, investment objectives, and policy statement; (b) (c) (d) monitor the performance of the Foundation's investments; identify whether the Foundation has excess funds available for investment; invest any excess funds in accordance with the guidelines established in this policy. The Manager, Finance and Administration is authorized to manage the investing activities. For each investment, one approval is required from either the Executive Director or Treasurer. Procedure: Review and Analysis: On a semi-annual basis, the Manager, Finance and Administration will prepare an Investment Report for review by the Committee. The Investment Report will provide details of investment balances and month-to-date and year-to-date investment income compared to budgeted amounts. A brief narrative of results to date will also be provided. It is the responsibility of the Committee, on a semi-annual basis, to; (a) discuss cash flow estimates with the Manager, Finance and Administration, to assist in determining the amount and timing of investment products to be purchased; (b) (c) review investing activities including monitoring the investment terms associated with individual investment products purchased. Specifically, when dealing with duration, duration should vary but should not exceed 60 months for non-endowed funds; ensure that all investments satisfy the guidelines as established above. Asset allocation within the group of products outlined above are at the discretion of the Committee. Investment Products : Minimum Rating Maximum Limit Money Market Securities: Government of Canada N/A See Appendix 1-A Banker's acceptances R-1 mid See Appendix 1-A Securitized Paper (bank sponsored) R-1 high See Appendix 1-A Commercial Paper R-1 low See Appendix 1-A Fixed Income Securities: Government of Canada N/A See Appendix 1-A
Provincial Bonds A Low / A- See Appendix 1-A Corporate Bonds A Low / A- See Appendix 1-A Canadian Bank and Trust Schedule 1 Bank and See Appendix 1-A Term Deposits Trust Subsidiaries* *See Appendix 1-B for detailed listing Schedule 2 Bank and See Appendix 1-A Trust Companies Guaranteed by CDIC* Records and Accounting: Records of investing activities including matured and outstanding investments will be held and maintained by the Foundation, which is also responsible for ensuring that the investing transactions are accounted for and disclosed in accordance with generally accepted accounting principles. Evaluation of Performance and Strategies: The results of investing activities will be measured in terms of the net investment income recorded in the consolidated results of operations compared to budget. Policy Review Procedures: The Committee shall review the Investment Policy annually. The Committee will make any recommendations it considers advisable to the Board with respect to the policy's confirmation or amendment. Conflict of Interest and Disclosure Requirements: No person directly or indirectly responsible for the investment activities of the Foundation shall knowingly permit his/her personal interests to conflict with his/her responsibilities in respect of the Foundation. Any potential conflict must be identified to the Committee.
Appendix 1-A Investment Products : Minimum Rating Maximum Limit Money Market Securities: Government of Canada N/A No limit Banker's acceptances R-1 mid No limit Securitized Paper (bank sponsored) R-1 high No limit Commercial Paper R-1 low $100,000 per issuer Fixed Income Securities: Government of Canada N/A No limit Provincial Bonds A Low / A- No Limit (not more than 25% of portfolio to any single province) Corporate Bonds A Low / A- 20% (not more than 5% of portfolio to any individual security, not more than 15% to any single issuer) Canadian Bank and Trust Schedule 1 Bank and No limit in total Term Deposits Trust Subsidiaries* $3,000,000 per issuer Schedule 2 Bank and Trust Companies Guaranteed by CDIC* $100,000 per issuer *See Appendix 1-B for applicable list
Schedule 1 Bank and Trust Subsidiaries Bank of Montreal Bank of Montreal Mortgage Corporation Bank of Nova Scotia (The) BMO Trust Company Canadian Imperial Bank of Commerce Canada Trust Company (The) CIBC Mellon Trust Company CIBC Mortgages Inc. CIBC Trust Corporation National Bank of Canada National Bank Trust Inc. National Trust Company Royal Bank of Canada Royal Bank Mortgage Corporation Royal Trust Company (The) Royal Trust Corporation of Canada Scotia Mortgage Corporation TD Mortgage Corporation TD Pacific Mortgage Corporation Toronto-Dominion Bank (The) Appendix 1-B Schedule 2 Bank and Trust Companies AGF Trust Company Amex Bank of Canada B2B Trust Bank of China (Canada) Bank West Bridgewater Bank Caledon Trust Company Canadian Tire Bank Canadian Western Trust Company Citibank Canada Citizens Bank of Canada Community Trust Company Computershare Trust Company of Canada Concentra Financial Services Association CS Alterna Bank CTC Bank of Canada Desjardins Trust Inc. DirectCash Bank Dundee Bank of Canada Effort Trust Company (The) Equitable Trust Company (The) Equity Financial Trust Company First Data Loan Company, Canada First Nations Bank of Canada General Bank of Canada
Habib Canadian Bank Home Trust Company HomEquity Bank Household Trust Company HSBC Bank Canada HSBC Mortgage Corporation (Canada) HSBC Trust Company (Canada) ICICI Bank Canada Industrial Alliance Trust Inc. Industrial and Commercial Bank of China (Canada) ING Bank of Canada Investors Group Trust Co. Ltd. Jameson Bank Korea Exchange Bank of Canada Laurentian Bank of Canada Laurentian Trust of Canada Inc. LBC Trust League Savings and Mortgage Company M.R.S. Trust Company Manulife Bank of Canada Manulife Trust Company Maple Trust Company MBNA Canada Bank MCAN Mortgage Corporation Mega International Commercial Bank (Canada) MonCana Bank of Canada Montreal Trust Company of Canada Natcan Trust Company Pacific & Western Bank of Canada Peace Hills Trust Company Peoples Trust Company President's Choice Bank RBC Dexia Investor Services Trust ResMor Trust Company Shinhan Bank Canada State Bank of India (Canada) Sun Life Financial Trust Inc. UBS Bank (Canada) Valiant Trust Company From the Canadian Deposit Insurance Corporation http://www.cdic.ca/members.html and Department of Finance Canada http://www.fin.gc.ca/toc/2001/bank_-eng.asp.