This online version is for convenience; the official version of this policy is housed in the University Secretariat. In case of discrepancy between the online version and the official version held by the Secretariat, the official version shall prevail.
Approving Authority: Board of Governors
Original Approval Date: February 11, 2016
Date of Most Recent Review/Revision: November 16, 2023
Office of Accountability: Vice-President: Finance and Administration
Administrative Responsibility: Office of Financial Resources
1.01 This policy provides a governance structure for the investment of University Funds. The University is committed to maintaining adequate cash levels while responsibly investing Excess Cash with an appropriate level of risk.
2.01 Excess Cash: cash held by the University beyond forecasted cash needs.
2.02 Internal Loan: an investment of University Funds in an administrative, academic, or ancillary project with specific repayment terms for principal and interest.
2.03 Minimal Default Risk Investment: an investment of University Funds with a low Risk Tolerance that is guaranteed by the Government of Canada or a Canadian Chartered Bank with a DBRS credit rating of at least R1-middle (or the equivalent from Moody’s or S&P). Examples include Treasury Bills, GICS and other similar investments.
2.04 Risk Tolerance: the ability to handle fluctuations in the market value of an investment and potential loss of principal.
2.05 University Funds: financial assets held by the University excluding the endowment fund, pension fund, Lazaris gift, Jarislowsky endowment, and loans provided to the Wilfrid Laurier University Students’ Union (WLUSU). Notwithstanding the fact that the Sinking Fund relates to the Debenture Retirement and would normally be considered a University Fund, for the purposes of this policy it shall be excluded and purview provided to the Investment Oversight Sub-Committee.
3.01 This policy applies to all University Funds. It applies to all administrative, academic, and ancillary units of the University.
4.01.01 A Minimal Default Risk Investment that matures within two years must be approved by either the VP Finance and Administration or the AVP Financial Resources or delegate. These investments should be annually reported to the Finance, Investments and Property Committee. For greater clarity, the limits imposed in Appendix A: Procedures for Signing Authorities for Contracts contained in Policy 5.7 Signing Authority Policy do not apply to Minimal Default Risk Investments.
4.01.02 The Board of Governors must approve all other University Funds invested externally that do not qualify under Section 4.01.01 of this policy. The Investment Oversight Sub-Committee should recommend an appropriate investment manager and/or investment vehicle, Risk Tolerance, and asset mix.
4.01.03 All investments of University Funds must have an appropriate level of liquidity, with the ability to convert to cash as needed by the University without material delay or penalties.
4.01.04 All investments of University Funds will be carefully monitored by Financial Resources with performance annually reported to the Finance, Investments and Property Committee. With respect to investments under 4.01.02, quarterly reports will also be delivered to the Investment Oversight Sub-Committee.
4.01.05 The process for investing University funds externally is outlined in the Procedures for Investing University Funds.
4.02.01 On an annual basis, the Board of Governors must approve the amount of Excess Cash available for Internal Loans. The Board will also have discretion to set limits on the maximum size of an individual Internal Loan.
4.02.02 Any capital acquisitions or other purchases using an Internal Loan must be made in accordance with Signing Authority Policy and Procurement and Tendering Policy. Acquisitions of real property and major capital equipment must also be approved by the Board of Governors.
4.02.03 The process for investing University funds internally is outlined in the Procedures for Investing University Funds.