â€¢ Prior to making an investment, the Treasurer will make a motion presenting the investment plan at an executive committee meeting. If there is an urgent time constraint then an email motion and vote will be undertaken. The WLUFA Executive Assistant will count the ballots. A confirming motion will be made at the next executive committee meeting.
â€¢ The Treasurer will execute, in all material respects the approved investment plan.
â€¢ The Treasurer will present the actual investment undertaken at the next executive meeting. A motion will be presented for any deviation from the plan.
â€¢ The Treasurer must assure the committee that the investment plan is within the WLUFA investment guideline (see below) or if outside the guideline then the Treasurer must provide reasons as to why the planned investment is appropriate.
â€¢ Also, if an investment plan is approved that is outside the guideline then an immediate review of the guideline must be undertaken. The revised guideline is to be presented as a motion at an executive committee meeting within 90 days.
All WLUFA investment plans must be reviewed with the goal of attaining high security of principal, high liquidity and low risk. The funds should be available for the needs of the Association at the time the need occurs. Such needs may arise from strikes, arbitrations, donations, etc. Thus our investment goals should be low risk and have a relatively short-term horizon.
a) Security of Principal
We should not be undertaking any investment where the principal is not secure.
â€¢ The principal is secure for investments such as:
i. GICâ€™s and deposits with Canadian Chartered banks and major Canadian Trust companies.
ii. Short term Canadian federal bonds, provincial bonds and government guaranteed bonds
â€¢ The principal is not secure for investments such as:
i. Corporate bonds
ii. Common and preferred shares
iii. Deposits with small Trust companies
iv. Deposits with offshore financial institutions
b) Liquidity (holding period)
If we are required to redeem our investment prior to maturity then we may suffer an early redemption loss. The cash (early redemption) value of a bond falls as interest rates rise. Some GICâ€™s have penalties if redeemed early and some GICâ€™s cannot be redeemed early.
â€¢ For GICâ€™s we should limit the term to maturity to permit up to one fourth of WLUFAâ€™s investments to be placed in longer than two year terms to achieve higher returns. The maturities should be laddered such that every year some investments mature.
â€¢ Normally government bonds should have a maximum remaining term to maturity of two years. Government bonds may have longer maturities if they can be redeemed annually for their full principal value plus accrued interest. All bonds should be saleable at anytime in the bond market.
c) Risk â€“ exchange rate
â€¢ The investment should be denominated in Canadian currency. This eliminates any currency risk.
d) Portfolio Strategy
â€¢ We should develop a portfolio of investments rather than relying on a single institution or single type of investment. The portfolio should have a variety of terms to maturity represented.
â€¢ We should not be making portfolio decisions that require substantial monitoring and renewal effort unless the additional effort brings substantial benefits to WLUFA.
Examples of Acceptable Investments
â€¢ GICâ€™s at Canadian Chartered Banks to permit up to one fourth of WLUFAâ€™s investments to be placed in longer than two year terms to achieve higher returns.
â€¢ Canadian federal government, provincial government and government guaranteed bonds to permit up to one fourth of WLUFAâ€™s investments to be placed in longer than two year terms to achieve higher returns.
â€¢ Long term (up to 7 years) Ontario Savings Bonds with the provisions that the bonds may be redeemed annually for full face value plus accrued interest
Approved May 18, 2004
Amended April 7, 2011
Policy on Donations and Endorsements
- When a Member of the University community has suffered bereavement, the Executive is authorized to send flowers or send the equivalent sum to the charity selected by the family in lieu of flowers. Bereavement shall include the death of a father, mother, spouse/partner, child or grandchild.
- Where a Member is on sick leave because of a serious illness or accident, the Executive is authorized to send flowers or other equivalent get-well gift to the Member.
- Where a Member or the spouse/partner of a Member has given birth or adopted a child or children, the Executive is authorized to send flowers to the family.
- The WLUFA Executive is authorized to make a donation of up to $2000 to an association of faculty or academic staff at a Canadian university which is in a legal strike or lockout situation. In the case of a prolonged strike or lockout (of more than two weeks duration) the Executive is authorized to make additional donations, in increments of $1000 or less, provided that the total donated to the aforementioned association shall not exceed $5000.
- Donations to special causes, such as other faculty associations or natural disaster relief, shall not be made without the approval of the Membership. A motion for such a donation must be brought to a General Meeting and notice of three (3) working days is required. Such donations shall not exceed $2500 and the figure of $2500 refers to the total amount of the donation, whether comprised of only one donation or a series of donations within a one-year period.
- Letters of support for charitable, professional, academic or governmental organizations (e.g., Learned Societies, NSSERC, SSHRC) shall not be issued without the approval of the Membership.
- Donations to charitable organizations shall not be made except as provided above (Section 1.)
- Donations to political parties shall not be made.
Approved at the WLUFA General Meeting, April 20, 2010