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unofficial consolidation, the official version is held by the municipal clerk.
1. PURPOSE
The purpose of this Investment Policy is to provide a clear statement of the
Township's investment objectives and to define the responsibilities of the
municipality, as well as any other parties involved in managing the Township's
investments. It is also used to identify or provide target asset allocations,
permissible investments and diversification requirements.
2. POLICY STATEMENT
The Township of Lanark Highlands shall invest in short-term investments that
offer increased investment revenues, conform to the listed statutory
requirements, are based ongoing cash flow analysis, the preservation of capital,
rate of return maximization and while maintaining the desired level of liquidity to
meet short-term cash requirements.
Legislative and Administrative Authorities
Section 418 of the Municipal Act 2001
Ontario Regulation 438/97, Eligible Investments and Related Financial
Agreements, as amended
Guiding Principles
Subject: Investment Policy
Policy No. : FI-08-2018
Date: May 8th, 2018
Page No. : 1 of 3
Preservation of Capital - Investments shall reflect the primary objective of
protecting any principal funds invested.
Liquidity - The portfolio shall remain sufficiently liquid to meet all short term
operating requirements and limit temporary borrowing. The portfolio shall consist
primarily of securities with active secondary or resale markets.
Diversification - The portfolio shall be diversified by asset class, issuer type,
credit rating and by term to the extent possible, given legal and regulatory
constraints.
Yield - The municipality shall maximize the net rate of return earned on the
investment portfolio, without compromising the other principles listed above.
3. REPORTING
The Treasurer or designate shall prepare, at a minimum semi-annual basis (or
when warranted), a cash flow analysis to determine the appropriate amount of
funds to be invested in short-term securities. This report will be presented to
Council for approval prior to investment of Township Funds.
On an annual basis the Treasurer or designate will report to Council the following
information:
a) Listing of the securities held at the end of the reporting period
b) The maturity date of each investment
c) A statement of the performance of the portfolio for the reporting period
specified
d) A record of any investments purchased or sold in the reporting period
e) Such other information that the Council may require, or that in the opinion
of the Treasurer should be included
4. RESPONSIBILITY
Treasurer
Report to Council on a semi-annual (or when warranted) cash flow
analysis to identify an appropriate amount of funds for investment
Enter into arrangements with Investment Managers
Execute and sign documents on behalf of the municipality and perform all
other related acts in the day to day operation of the investment and cash
management
Develop and maintain all necessary operating procedures for effective
control and management of the investment function
Investment Manager
Allocate assets and select securities or investments in accordance with
the established Township Investment Policy
Provide regular reports to the Township (at least monthly)
Recommend changes to established investment policy that are deemed
appropriate
Provide advice and counsel with respect to the Investment Portfolio
Provide safekeeping of the Investment Assets