B.3.02 Investment Policy

POLICY

The investment policy of the Manitoulin-Sudbury District Services Board is to invest long term surplus funds not required for use in the next 12 months in the following manner: 

• Low risk investments
• Highest possible rate of return
• Will be a fixed income portfolio diversified by both terms and issuer
• Investments to be made up of Guaranteed Investment Certificate (GIC), Government Bond, Provincial Bond and grade A Corporate Bond (rated by Dominion Bond Rating)
• Other investments not covered must be approved by Board as recommended by the Finance Committee.
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PROCEDURE

Preservation of Capital 

The primary objective of this portfolio is preservation of capital. 
 

Diversification 

Proper diversification can reduce the overall risk level of a portfolio and improve returns. To ensure adequate liquidity, Manitoulin-Sudbury DSB investments will be invested by various terms. The fixed income portion of the portfolio will be diversified by term and issuer.

• Performance will be reported quarterly with access daily for review purposes.