Investment Policy

Authorization: Board of Governors
Approval Date: December 17, 2019

The University of Saskatchewan uses investments to generate return on assets to fulfill strategies that are aligned with its mission, vision and values. This policy establishes a framework for the investment of funds for the university. This policy:

• Establishes the investment objectives and principles for the university’s cash and investment assets.
• Defines and assigns the responsibilities of all involved parties.

The university mission, vision, and values inspire all of the principles and responsibilities in this policy. The policy was also developed with the following additional principles in mind:

• Risk Management. The risk tolerance of the funds will align with the university’s risk management framework. Under the leadership of the Vice-President, Finance and Resources, investment risk will be monitored and the following key risk management strategies will be used:
  • Consideration of derivatives and other risk management tools to mitigate foreign currency and interest rate risks.
  • The level of holdings of particular assets and the quality of certain types of investments will be used to manage credit risk.
  • Diversification of asset classes to mitigate market risk and facilitate liquidity requirements.
• Responsible Investing. The university participates in responsible investing by integrating environmental, social and governance (ESG) criteria into the management of the funds. The university believes that, through engagement rather than divestment, the university can play an important role in supporting change and that ESG factors have the potential to affect long-term investment performance.

This policy applies to the university’s trust and endowment funds, pension assets, pooled cash balance and externally directed agreements. In instances where pension legislation and fiduciary requirements do not align with the policy, pension legislation and governance would supersede the policy.

Related policies include the Investment Income Allocation and Spending policies.

Authority over investments is delegated by the Board of Governors to the Vice-President, Finance and Resources.

The university’s invested funds have the primary objectives to:

• Fulfill the university’s mission and vision in accordance with its values.
• Balance maximization of returns against risks within the scope of the policy.
• Maintain and grow funds for which the university has a fiduciary responsibility.

The university will not:

• Accept and administer funds not in line with the Policy and associated university investment strategies.
• Compensate any of the university’s employees based on investment performance.

Board of Governors

The Board of Governors maintains accountability for investments through this policy and monitors compliance, investment performance, and investment strategies through reporting from the Vice-President, Finance and Resources.

Vice-President, Finance and Resources

The Vice-President, Finance and Resources is responsible for:

• Establishing structures and strategies to invest the university’s resources in alignment with the university’s mission, vision, values, strategic plans, and fiduciary responsibilities.
• Administering the university’s investments, including making shifts in investment strategy to align with the university strategy as needed.
• Establishing an Investment Committee.
• Reporting to the Board of Governors on strategies, performance, compliance, and risk.