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Investment Policy

Date Approved:        July, 2020
Date Revised:

The Waterloo Presbytery Extension Council (WPEC) holds all assets in trust for the benefit of Communities of Faith as defined in the By-Laws. The Board of Directors has a fiduciary responsibility to manage those funds in such a way that the mission and ministry of the Church is furthered.

Accordingly:

  1. The Board may delegate to any group of at least two Directors, one of whom must be the Treasurer, responsibility for the day-to-day management of the WPEC’s investment portfolio (hereafter called the “Investment Committee.”)
  2. The Investment Committee may engage the services of a professional fund manager subject to the approval of the Board. 
  3. The Board will determine annual investment goals and determine the asset mix of the portfolio in such a way that an appropriate balance of desired financial return and acceptable risk is maintained. The table below outlines a target range for different classes of investments to which the WPEC will normally adhere.                                                                           
                  Min %Max % Target 
Fixed income, cash & short-term30      40       50
Total equities50      60 

Any deviation from the target range of more than 5% must be approved by the Board.
 
The Investment Committee will not fail to inform the Board of any unusual risk, change in market conditions, or other factors that may affect the value of the portfolio. In general, the portfolio will be managed so as to minimize the risk of a market value decrease of up to 15%.

In order to achieve its objectives, the WPEC will strive for a return of approximately 6% per annum. This allows for inflation protection (up to 1% per annum) and the payment of management fees (1% per annum.)

The Board will review this target at least annually and may revise it according to changing market conditions and in consultation with the professional fund manager selected by the Board to manage the WPEC’s assets.

 The Investment Committee will ensure that a balance of liquid funds is maintained at a reasonable level to meet anticipated requests for loans or grants.

The Investment Committee will inform the Board at least quarterly of the amount of funds available for loans and grants.