Investment Policy Statement

At the start of the year, the returning Fund Managers reviewed and updated the Investment Policy Statement (IPS). The purpose of the IPS is to articulate the risk and return profile of the Fund and to specify certain investment decisions or restrictions that are mandated by this analysis, as well as by the IMPACT Charter. The IPS must be reviewed annually to ensure its appropriateness.

Selling Policy

This year the IMPACT Fund established a Selling Policy to be included in the IPS. While termed a selling policy, it is really a set of criteria indicating under what conditions the current holdings of the Fund must be reviewed. If one of the criteria is met, the relevant Fund Manager and Research Associate must conduct an analysis of the security and inform the team about a decision to sell or continue to hold. In addition, the Selling Policy establishes that all securities should be re-evaluated by the end of October, January and March regardless of any of the criteria being met.

The IPS also dictates the IMPACT Fund's allowable asset allocation ranges as shown below. This year, the Canadian Equity component represents the only "actively-managed" portion of the portfolio, with exposure to the remaining asset classes to be achieved by investment in the appropriate exchange-traded funds (ETF's).

Click here to download the complete Selling Policy - pdf

Asset Class Minimum (%) Midpoint (Benchmark) (%) Maximum (%)
Cash and Short Term Securities 0 5 10
Canadian Equity 60 70 80
Bonds 5 12.5 20
International Equity 1 5 12.5 20

1 The International Equity component shall be divided between a U.S. Equity portion and a non-U.S. Equity portion. The benchmark for international equity asset class is equally weighted between these two portions.