4.     ENDOWMENT FUND Investment policy


politique d’investissement dans le fonds de dotation

 

 

COMMITTEE RECOMMENDATIONS

 

That Council:

 

1.   Adopt the investment policy and procedures statement attached hereto as Appendix "A" for the City of Ottawa Endowment Fund .

 

2.   Approve the establishment of an Investment Committee with the roles and responsibilities and membership as detailed in Appendix "B" .

 

 

RECOMMENDATIONS DU COMITÉ

 

Que le Conseil :

 

1.   adopte l’énoncé des procédures et de la politique d’investissement visant le Fonds de dotation de la Ville d’Ottawa, ci-joint comme Annexe « A »;

 

2.   approuve l’établissement d’un comité des investissements, dont le rôle, les responsabilités et la composition sont détaillés dans l’Annexe « B ».

 

 

 

 

 

 

 

 

 

DOCUMENTATION

 

1.         Chief Corporate Services Officer’s report dated 29 May 2006
(ACS2006-CRS-FIN-0025).


Report to/Rapport au :

 

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

 

and Council / et au Conseil

 

29 May 2006 / le 29 mai 2006

 

Submitted by/Soumis par : Greg Geddes, Chief Corporate Services Officer/Chef des Services généraux

 

Contact Person/Personne ressource : Marian Simulik, Acting Director, Financial Services and City Treasurer/Directrice des services financiers et Trésorière municipale par intérim

Financial Services/Services financiers

580-2424, Ext./poste 14159, Marian.Simulikl@ottawa.ca

 

City Wide

Ref N°: ACS2006-CRS-FIN-0025

 

 

SUBJECT:

ENDOWMENT FUND INVESTMENT POLICY

 

 

OBJET :

politique d’investissement dans le fonds de dotation

 

 

REPORT RECOMMENDATIONS

 

That the Corporate Services and Economic Development Committee recommend Council:

 

1.         Adopt the investment policy and procedures statement attached hereto as Appendix "A" for the City of Ottawa Endowment Fund .

 

2.         Approve the establishment of an Investment Committee with the roles and responsibilities and membership as detailed in Appendix "B" .

 

 

RECOMMANDATIONS DU RAPPORT

 

Que le Comité des services organisationnels et du développement économique recommande au Conseil :

 

1.         d’adopter l’énoncé des procédures et de la politique d’investissement visant le Fonds de dotation de la Ville d’Ottawa, ci-joint comme Annexe « A »;

 

2.         d’approuver l’établissement d’un comité des investissements, dont le rôle, les responsabilités et la composition sont détaillés dans l’Annexe « B ».

 

BACKGROUND

 

On August 25, 2004, Council received a report relating to the Governance of Hydro Ottawa and adopted a number of recommendations relating to the structure of the Board of Directors and the formulation of the financial structure of Hydro Ottawa.  Among the recommendations was one that Council convert $37,825,000 of the $237,825,000 promissory note and call on the balance to be paid to the City in January 2005.

 

On October 25, 2004, as part of its consideration of the Long Range Financial Plan, Council approved the following motion:  “That the City establish an Endowment Fund with the proceeds of the Hydro Ottawa refinancing and that the City request special legislation that would allow the fund to be invested under the Trustees Act”.  In early January 2005, Hydro Ottawa completed its refinancing and paid the City $200,000,000.  The City subsequently requested special legislation that would allow the fund to be invested under the Trustees Act providing a broader range of investments than allowed under municipal legislation.  The Minister of Municipal Affairs and Housing was approached to provide authorization to the City to broaden the scope of investments eligible solely for these funds. 

 

On October 12, 2005, Council authorized the City Treasurer upon receipt of the enabling Provincial regulation, to proceed with the establishment of an Endowment Fund ("Fund") on the basis outlined in the report and to hire an investment consultant.  Provincial Regulation 655/05 was adopted on December 19, 2005, which provided the framework for the eligible investments for the Endowment Fund and required that investments be made in a professionally-managed fund.

 

In order to develop the investment policy, strategies and search for qualified investment managers to meet the requirements of the Provincial regulation, proposals for investment consulting services were sought from five experienced firms.  Submissions were received from four firms and following a review of the various proposals, James P. Marshall, a Hewitt Company was selected as the successful proponent.

 

This report recommends the investment policy for the Fund which includes a spending target of 6.5%.  The spending target is the minimum earnings the City wants to achieve from the investment of the Fund.  The report also recommends the ranges for the investment mix between equity and fixed income and the governance structure for the Fund.

 

DISCUSSION

 

Ontario Regulation 655/05 broadened the scope of eligible investments specifically for the funds received by the City of Ottawa from the Hydro Ottawa refinancing.  In addition to Government of Canada and Provincial short and long-term treasury bills, notes and bonds, Canadian bank obligations and Asset Backed Securities, the Regulation allows the Fund to own Canadian corporate bonds and Canadian equities.  Although this represents a significant increase in the scope of investments and thus the possibility of greater long-term returns, the regulation did not permit the full scope of investments available under the Trustee Act or to the City’s pension funds (the Ottawa Carleton Regional Transit Commission Employees' Pension Plan and the City of Ottawa Superannuation Fund).  Thus the Fund's assets cannot be invested in the full range of asset classes, including foreign investments (i.e. bonds and equities), lower investment grade fixed income instruments and alternatives.  Not only does this limit the possibility of improved investment returns from these asset classes but this diminishes the Endowment Fund's ability to diversify its portfolio which is generally regarded as an important criteria to reduce fluctuations in portfolio valuations and minimize risk.

 

One of the first steps to be taken in setting up the Fund is to determine a realistic spending policy or rate at which funds will be withdrawn to support the City’s capital program.  Long-term historical evidence suggests that the investment returns which we have experienced in recent years in bond and equity markets are not representative of future expected returns and the spending policy target should reflect this.  For example, based on our consultant's asset class returns assumptions, they believe that over the next ten years long-term bonds will deliver approximately 4.5% per annum, compared to the previous ten years where this asset class returned 10.1%.  

 

A survey of Canadian endowment funds carried out by the Canadian Association of University  Officers (CAUBO) in 2004 indicates that 70% of the respondents reported average spending rates of 6.0% or less.  Given that anticipated investment returns are less than those recently experienced, and the objective of preserving the initial capital in the fund of $200 million, it is recommended the spending policy be set at the lesser of 6.5% and the earnings of the Fund after expenses for the year.  The expenses attributable to the Fund and recovered from its earnings include, custodian fees, investment management fees, investment consultant fees, the costs of performance measurement, banking costs and possibly financial information provider services.  If earnings are greater than 6.5% in any given year, the additional earnings will be kept in the Fund.

 

The retention of these earnings will provide a margin of safety for those years when the Fund generates returns that are less than the spending required to operate the Fund.  It also provides some adjustment for inflation so that future contributions from the Fund can keep up with inflated future capital costs.  A target earnings rate of 6.5% may appear low in comparison to the exceptional returns which some investment classes (real estate and Canadian equities) have provided in recent years, however, as mentioned previously, future investment returns are expected to be subtantially more moderate.  It is useful to compare the 6.5% target return for the Fund to the City's own investment portfolios with restricted eligible investments which returned 3.45% on a market to market basis for 2005 which exceeded ONE Fund returns as reported to Council on May 24, 2006.

 

In order to provide a return which is greater than the returns provided by the City’s other investment assets, exposure to other asset classes is required.  Regulation 655/05 permits Canadian equities and corporate bonds. 

 

According to the CAUBO survey the median asset mix for University Endowment funds over $100 million is 61% equity (including US and international equities) and 34% fixed income (Government and corporate bonds, asset backed securites etc.).  Several model portfolios were developed in a Spending Policy Review prepared by Marshall's using various target returns around the 6.5% range.  The performance of each portfolio was simulated over a 10-year period using a multitude of economic scenarios.  The asset mix set out in Annex A with benchmarks of 70% Canadian equities and 30% fixed income (with ranges of a minimum 50% to 80% equities and 20% to 40% fixed income) was selected as offering the best combination of risk and returns.

 

Governance Structure

 

Appendix B provides the details of the proposed governance structure for the Endowment Fund Investment Committee.  The Committee would include the City Manager, the City Solicitor, the Chief Corporate Service Officer, the City Treasurer, and the Manager, Treasury.  The Committee would be authorized to undertake all the administrative aspects of operating the Fund including investment strategy, asset allocation mix, setting benchmarks, investment manager selection and monitoring the Fund's performance.  J. P. Marshall will develop a short list of qualified investment managers for consideration by the Committee from managers who measure their investment returns in accordance with accepted industry standards as specified by the Global Investment Performance Standards (GIPS) published by the Chartered Financial Analysts Institute.  Compliance with the CFA Institute's GIPS Standards will ensure that there is uniformity among the pool of investment manager candidates when it comes to their return calculation methodology.  The Committee would report to Council annually on the performance of the fund and provide the reporting information required under O. Regualtion 655/05.  Any proposed changes to the governance structure would require Council approval.

 

CONSULTATION

The public consultation process is not applicable.

 

FINANCIAL IMPLICATIONS

 

The Endowment Fund will provide the City with an on-going source of revenue to contribute to the City's capital program.  The statement of Investment Policies and Procedures in Appendix A are expected to provide attractive long-term investment returns within an acceptable level of risk.

 

SUPPORTING DOCUMENTATION

 

Appendix A -  Statement of Investment Policies and Procedures

Appendix B - Investment Committee Governance Manual.

 

DISPOSITION

 

Upon approval of the investment policy and procedure statement and governance structure by Corporate Services and Council, the Investment Committee will proceed to develop more detailed investment manager mandates, select fund managers and implement the steps required to make the fund operational.

 

 


APPENDIX A

Section 1—Overview

 

1.01          Purpose of Statement

This Statement of Investment Policies and Procedures (the “Policy”) provides the framework for the investment of the assets of the City of Ottawa Endowment Fund (the “Fund”).

The objective of this Policy is to ensure that the assets of the Fund shall be invested in a prudent and effective manner. 

The long term goal of the Fund is capital preservation of $200 million initial contribution while providing an ongoing source of income to the City‘s capital program.

The purpose of this Investment Policy is to:

·         summarize the nature of the Fund;

·         set out the long term investment objectives and guidelines under which the Fund is to be invested;

·         identify the permitted and prohibited investments;

·         establish criteria for monitoring and controlling the investment of the Fund; and

·         address other relevant issues

 

1.02          Background of the Endowment

On 27 October 2004, the City of Ottawa agreed to establish an Endowment Fund from the funds they received from a Hydro Ottawa Promissory Note.  On 6 January 2005, the City received $200 million from Hydro Ottawa and the Funds were temporarily invested in short-term securities.

The Fund’s eligible set of investments is based upon the Ontario Municipal Act Amended to O. Reg. 655/05.

1.03          Objective of the Fund

The Fund’s long-term goals are:

1.       Earn a nominal rate of return of 6.5% to meet its annual distribution target and expenses.

2.       Maintain the initial $200 million principal amount.

 

1.04          Investment and Risk Philosophy

The investment objectives set out in 1.03 above is consistent with the overall investment risk level that the Fund could assume in order to meet its obligations. The Fund should be prudently managed to help avoid excessive volatility in annual distributions.


In order to achieve its long-term investment goals, the Fund must invest in assets that have uncertain returns, such as Canadian equities and non-government bonds. However, the Fund attempts to reduce the overall level of risk by diversifying the asset classes and further diversifying within each individual asset class.

The Fund has a moderate to moderately high tolerance for risk. Accordingly, the long-term policy asset mix for the Fund has a bias to equities.

 


 

Section 2—Asset Mix and Diversification Policy

 

 

2.01          Portfolio Return Expectations

The long-term expectation of the Fund is to achieve a total annual nominal rate of return, of at least 6.5%. The spending policy target of the Fund is set at the lesser of 6.5% and the annual rate of return of the Fund after expenses.  If earnings are greater than 6.5% in any given year, the additional earnings will be retained in the Fund.  The retention of additional earnings provides a margin of safety for those years when the Fund’s generates returns less than the spending policy target.

The long-term asset mix policy has been established in order to provide a reference for long-term return requirements which are consistent with the Fund’s distribution requirements at an acceptable risk level.

2.02          Asset Mix

(a) Total Asset Mix

Taking into consideration the investment and risk philosophy of the Fund, the following asset mix has been established:

Assets

Minimum %

Benchmark %

Maximum %

 

 

 

 

Canadian Equities

50.0

70.0

             80.0

Total Equities

50.0

70.0

            80.0

 

 

 

 

Bonds

 20.0

                 30.0

             40.0

Total Fixed Income

20.0

                30.0

            40.0

 

 

 

 

Total

 

             100.0

 

 

 

 

 

 


APPENDIX B

 

 

 

City of Ottawa

Endowment Fund Investment Committee

Governance Manual

May 2006

 

To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of your organization and Hewitt Associates.

Contents

 

Section 1—Overview                                                                                                                     83

1.01      Purpose of Governance Manual                                                                                          83

1.02      Mandate of the Committee                                                                                                 83

1.03      Background of the Fund                                                                                                     83

1.04      Governance Structure                                                                                                        83

Section 2—Structure of the Committee                                                                                        84

2.01      Composition of the Committee                                                                                            84

2.02      Officers                                                                                                                              3

2.03      Appointment of Members                                                                                                    3

2.04      Resignation                                                                                                                       84

2.05      Termination                                                                                                                       84

Section 3—Conduct of Meetings                                                                                                   86

3.01      Frequency                                                                                                                         86

3.02      Venue                                                                                                                               86

3.03      Agenda                                                                                                                             86

3.04      Voting                                                                                                                               86

3.05      Quorum                                                                                                                            86

3.06      Meeting Records                                                                                                               86

3.07      Conflicts of Interest                                                                                                           86

3.08      Confidential Information                                                                                                     88

Section 4—Duties and Responsibilities                                                                                        89

4.01      Facilitation of Investment of the Fund                                                                                  89

4.02      Standard of Care                                                                                                               89

4.03      Delegation                                                                                                                         89

4.04      Reporting                                                                                                                          89

Section 5—General Provisions                                                                                                      91

5.01      Protection from Liability                                                                                                     91

5.02      Compensation                                                                                                                    91

5.03      Adoption of Manual                                                                                                           91

5.04      Amendment of Manual                                                                                                      91

Appendix A—Governance Structure                                                                                             92

Appendix B—Fund Activity Chart                                                                                                93

Appendix C—List of Agents                                                                                                         95

Section 1—Overview

 

1.01          Purpose of Governance Manual

This Governance Manual sets out the policies and procedures to be followed by the City of Ottawa Endowment Fund Investment Committee (the “Committee”) in the investment of the assets of the City of Ottawa Endowment Fund (the “Fund”).

1.02          Mandate of the Committee

The Committee was established by resolution of the City Council of Ottawa (the “Council”) on . The mandate of the Committee is to facilitate the prudent investment of the Fund.

1.03          Background of the Fund

On January 6, 2005, as part of its financial restructuring, Hydro Ottawa paid a sum of money to the City of Ottawa (the “City”) to retire a promissory note held by the City.  Since that date, such funds have been kept separate from other investment funds of the City.

On October 4, 2005, Council approved a report which set out guidelines for such funds and recommended that the City proceed to establish the City of Ottawa Endowment Fund (previously defined as the “Fund”). The main objective of the Fund is capital preservation of the initial contribution while providing an ongoing source of income to the capital program of the City. It is anticipated that an annual payment will be made from the Fund as a contribution to the capital program of the City.

1.04          Governance Structure

The governance structure for the investment of the Fund is illustrated in Appendix A (Governance Structure).

Section 2—Structure of the Committee

 

2.01          Composition of the Committee

The Committee shall be comprised of persons holding the following positions:

·         Manager, Treasury;

·         City Treasurer;

·         Chief Corporate Services Officer;

·         City Manager or his or her appointee ; and

·         City Solicitor or his or her appointee  (collectively, the “Members”).

In no event, shall the Committee consist of persons other than those holding the above positions. In no event, shall the Committee consist of less than three persons.

2.02          Officers

The Chairperson of the Committee shall be the City Treasurer. The Secretary of the Committee shall be the Manager, Treasury.

2.03          Appointment of Members

Subject to the terms of Section 2.01 above, Council shall appoint new Members with input from the Committee. It is recognized that one individual may hold dual positions.

The Secretary shall ensure that new Members receive an education session explaining the Fund and the duties and responsibilities of the Committee as set out in this Governance Manual.

2.04          Resignation

A Member may resign at any time by providing one month written notice thereof to each Member.

2.05          Termination

Subject to the terms of Section 2.01, Council may replace a Member at any time with input from the Committee.

A person’s membership on the Committee will automatically terminate on the person’s death, termination of employment, retirement or disability which renders him or her incapable of fulfilling his or her duties and responsibilities as set out in Section 4 (Duties and Responsibilities).

Section 3—Conduct of Meetings

 

3.01          Frequency

The Committee shall meet at least two times per annum.  Subject to Section 3.07(b)(Conflicts of Interest, Disclosure), the Secretary of the Committee shall provide each Member with written notice of each meeting at least one month in advance of such meeting.

3.02          Venue

The meetings shall be held at the office of the City at 110 Laurier Ave. West or such other place as may be determined by the Committee. Meetings may also be held by teleconference upon the advance written consent of each Member.

3.03          Agenda

Subject to Section 3.07(b)(Conflicts of Interest, Disclosure), the Chairperson shall distribute an agenda and copies of any material to be considered at a meeting to each Member of the Committee at least seven business days prior to the meeting.

3.04          Voting

Notwithstanding that a Member may hold dual positions, each Member shall have one vote. Motions shall be carried by majority vote.  In the event of a deadlock, the Chairperson shall have a second and deciding vote.

3.05          Quorum

A quorum shall consist of at least three Members, one of whom must be the Chairperson.

3.06          Meeting Records

The Secretary shall record written minutes of each meeting and distribute such minutes to each Member within two weeks following the meeting. Each Member shall review the minutes to ensure that they are complete and accurate. At the next meeting, the minutes will be amended, if necessary, and approved by the Committee.

The Secretary shall retain a copy of the approved minutes from each meeting in a designated meeting book.

3.07          Conflicts of Interest

(a)        Generally

No Member shall knowingly permit his or her interest, monetary or otherwise, direct or indirect, to conflict with the proper exercise of his or her duties and responsibilities as described in Section 4 (Duties and Responsibilities).


 

(b)        Disclosure

In the execution of his or her duties, a Member shall disclose any material conflict of interest relating to him or her, or any material ownership of securities, which could impair his or her ability to make unbiased decisions affecting the investment of the Fund.

Further, it is expected that no Member shall make any personal financial gain (direct or indirect) because of his or her fiduciary position.  However, expenses incurred in the discharge of his or her responsibilities are permitted if documented and approved by the City, as applicable.

No Member shall accept a gift or gratuity or other personal favour, other than one of nominal value, from a person with whom the Member deals in the course of performance of his or her duties and responsibilities as described in Section 4 (Duties and Responsibilities).

A Member who believes that he or she may have a conflict of interest, or who is aware of any conflict of interest, shall disclose full details of the situation to the attention of the Committee immediately.  The Committee, in turn, will decide what action is appropriate under the circumstances, including calling an emergency meeting of the Committee to address the potential conflict of interest, but, at a minimum, will table the matter at the next regular meeting of the Committee.

Notwithstanding the notice requirements in Section 3.01 (Frequency) and Section 3.03 (Agenda), if the Committee determines that it is necessary to hold an emergency meeting of the Committee to address a potential conflict of interest of a Member, the Committee shall meet as soon as a quorum can be constituted.

No Member who has or is required to make a disclosure in accordance with this section shall participate in any discussion, decision or vote relating to any proposed investment or transaction in respect of which he or she has made or is required to make disclosure, unless otherwise determined permissible by unanimous decision of the Committee.

(c)        Register

The Secretary shall maintain a register of any conflicts of interest.  The register shall include a description of each conflict of interest, the Member to whom the conflict of interest applied, the date upon which the conflict of interest arose and the manner in which the conflict of interest was dealt with.

(d)        City of Ottawa Code of Conduct

In addition to the obligations set out in this Section 3.07, each Member, as an employee of the City, shall be subject to the City of Ottawa Code of Conduct.

 

3.08          Confidential Information

(a)        Generally

Confidential information includes all information obtained as a result of duties carried out as a Member of the Committee.  This information includes, but is not limited to, information regarding the funding and investment of the Fund and any other information not required or permitted to be released to the public (collectively, “Confidential Information”).

Each Member shall maintain the confidentiality of all Confidential Information and shall use such information solely for the purposes of fulfilling his or her duties as a Member of the Committee.  A Member shall not disclose Confidential Information to anyone internal or external to the Company unless such persons have a legitimate reason to know in order to carry out their duties with respect to the Fund or unless such information is required by law to be disclosed.

(b)               City of Ottawa Code of Conduct

In addition to the obligations set out in this Section 3.08, each Member, as an employee of the City, shall be subject to the City of Ottawa Code of Conduct.

Section 4—Duties and Responsibilities

 

4.01          Facilitation of Investment of the Fund

Subject to legislative restrictions, the Committee is responsible for facilitating the prudent investment of the Fund.

 

The specific duties and responsibilities, and limits on authority, of the Committee are contained in the activity chart in Appendix B (Fund Activity Chart).

 

4.02          Standard of Care

Each Member, shall carry out his or her duties and responsibilities, with respect to the Fund honestly and in good faith.  Furthermore, each Member, shall act with the care, diligence and skill that a person of ordinary prudence would exercise in dealing with the property of another person.

4.03          Delegation

Subject to the following paragraph, the Committee may delegate certain of its duties and responsibilities to another person or persons or employ such qualified agents from time to time as it deems necessary in order to carry out its duties in a prudent manner. The Committee must be satisfied of the agent’s suitability to perform the act for which the agent is employed and the Committee shall carry out such supervision of the agent as is prudent and reasonable. The terms of reference of each delegation or employment shall be documented in writing and shall include the frequency and required content of reports to be delivered to the Committee. The Committee may also terminate such agents as it deems necessary and as is prudent and reasonable.

Notwithstanding the preceding paragraph, the City shall be responsible for appointing and terminating an auditor to review the Fund.

Currently, the Committee has delegated certain duties and responsibilities to the agents listed in Appendix C (List of Agents).

In addition, as required from time to time, the Committee shall appoint a third party to educate Members of the Committee about the Fund and the duties and responsibilities of the Committee as set out in this Governance Manual.

4.04          Reporting

The Committee shall prepare a written report not less frequently than once each calendar year for the Council that outlines the results of the Committee's activities described in this Section 4 and any other issues pertinent to the Committee's duties and responsibilities. The written report shall include, among other matters, a list of the agents that have been appointed and / or terminated by the Committee during the time period in question.

Section 5—General Provisions

 

5.01          Protection from Liability

The City hereby agrees to indemnify, defend, save, and keep harmless the Committee and each of its Members from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements of any kind or nature imposed on, or incurred by or asserted against the Committee or its Members as a consequence of any action or inaction by the Committee or its Members in connection with the performance of their duties in relation to the Fund, provided, however, that the City shall not be required to indemnify any such person for the willful misconduct or gross negligence of such person.

As a Committee of Council, the Committee and each of its Member’s fiduciary liability will be insured under the City’s Integrated Insurance program, which includes Municipal Liability and Errors and Omissions Liability, while performing their duties hereunder.  Details of such coverage can be provided by the City’s Risk Management Unit.

5.02          Compensation

Members shall not be compensated for performance of their duties on the Committee but shall be reimbursed by the City, for any normal and reasonable fees and expenses incurred in the discharge of their responsibilities which have been documented and approved by the City.

5.03          Adoption of Manual

This Governance Manual was originally approved by a resolution of Council dated .

5.04          Amendment of Manual

The Committee may recommend amendments to this Governance Manual.  Such recommendations shall be in writing and shall be presented to Council for approval. This Governance Manual may only be amended by resolution of Council.

 


Appendix A—Governance Structure

 

 

 


Appendix B—Fund Activity Chart

 

Activity

Frequency

Decision-Maker

Activity Completed? (Y/N)

Legislative Compliance

Review Investment Policy for Compliance

Ongoing

 

Annual Status Report

Committee

 

Monitor Legislation

Ongoing

 

Annual Status Report

Not Applicable

 

Monitor Case Law

Ongoing

 

Annual Status Report

Not Applicable

 

Review Performance of Lawyer

Annually

Committee

 

Funding/Accounting

Prepare Auditor’s Report

Annually

Not Applicable

 

Review Performance of Auditor/Accountant

Annually

City

 

Performance of Asset Management

 

Monitor Investment Performance

Ongoing

 

Annual Status Report

Committee

 

Monitor Performance of Investment Manager(s)

Ongoing

 

Annual Status Report

Committee

 

Confirm or Recommend Amendments to Investment Strategy

Ongoing

 

Annual status report

Committee

 

Review Content and Appropriateness of Investment Policy

At least

annually

Committee

 

·         Approve Asset Mix

At least annually

Committee

 

·         Approve Benchmarks

At least Annually

Committee

 

·         Approve Investment Restrictions and Quality Standards

At least

Annually

Committee

 

Review Fees Associated with Investment Vehicles

At least Annually

Committee

 

Review Performance of Custodian

Annually

Committee

 

Review Performance of Investment Manager

Annually

Committee

 

Review Performance of Investment Consultant

Annually

Committee

 

Hiring/Terminating Agents

Auditor/Accountant

As required

City

 

Custodian

As required

Committee

 

Investment Manager

As required

Committee

 

Investment Consultant

As required

Committee

 

Lawyer

As required

Committee

 

Annual Report Submitted to Council

Annually

Council

 

Self-Assessment of Governance Structure

Annually

Council

 

Appendix C—List of Agents

 

The following agents have been delegated the duties and responsibilities set out in Appendix B
(Fund Activity Chart):

Agent

Appointed

 

 

Auditor/Accountant

As appointed by Council

 

 

Custodian

Royal Trust

 

 

Investment Consultant

James P. Marshall, a Hewitt Company

 

 

Investment Manager

To be determined

 

 

Legal

As determined by the Committee