Investment Policy Statement
1. Rothwell United Church Board of Trustees (RUC BoT) is trying to improve its return on its investments to be able to better support the annual requirement to pay the Minister’s Housing Allowance (See Note), and beyond that, to increase the value of its holdings.
2. The RUC BoT will attempt to achieve reasonable diversification with respect to asset classes, market sectors, term of interest bearing securities, and risk, acting as prudent investors following the leading example provided by The United Church of Canada Foundation. Funds will be placed in low to medium risk investments that will yield a five-year average ROI of at least 5%.
3. The Asset allocation describing the minimum and maximum percentages of different categories of investment vehicles, e.g. bonds, GICs, funds, etc. follows The UC Foundation’s policy which states the following asset mix:
Cash & Money Market -------------0% ---------------20%
---- Canadian Bonds----------------20% ---------------60%
US & International Equities -------10%----------------30%
4. It is intended to stay with Scrivens Insurance and Investment Solutions, and to move funds from the GICs presently held, as they mature, into a self-directed account managed at a moderate risk level by the B2B bank or Fundex, as may be appropriate. Wherever possible, the investments selected shall avoid any direct, indirect, or 3rd order investments in tobacco, arms, fossil fuels, non-sustainable resource extraction industries, as well as state enterprises in countries that are known human rights violators. Quarterly reporting to RUC BoT is expected from Scrivens.
5. The persons authorized to act for the shall be the approved signing officers.
NOTE: The Ministers’ Housing Allowance is set by the Ministry and Personnel Committee, and paid through the Finance and Property Committee. The amounts transferred from the RUC BoT do not cover the full HA payment.
MOTION RE: RESTRICTIONS ON TRUST FUND INVESTMENTS
WHEREAS in 1985, Presbytery approved of the sale of the manse and directed that the Rothwell United Church Board of Trustees (RUC BoT) maintain a reserve equivalent to the net capital received from the sale, $195,000, in case the congregation needed to purchase a manse in the future.
And WHEREAS Presbytery’s letter of 14 May 2003 approved RUC’s request:
And WHEREAS The Trustees’ letter of March 9, 2003, in part, states that:
And WHEREAS the current low rates of return from GICs has resulted in a reduction of the RUC BoT’s ability to support the Housing Allowance,
And WHEREAS the RUC BoT have developed a proposed Investment Strategy Plan (ISP) in accordance with the requirements of the Trustees Manual, which would permit the RUC BoT, and thereby the RUC Congregation, to prudently determine a reasonable diversification with respect to asset classes, market sectors, terms of interest bearing securities, and an acceptable level of risk, to assist in the generation of the income required by the Congregation.
And WHEREAS in order to endeavour to improve upon the current return on investments, the RUC BoT are requesting that:
THEREFORE be it resolved that:
NOTE: The Ministers’ Housing Allowance is set by the Ministry and Personnel Committee, and paid through the Finance and Property Committee. The amounts transferred from the RUC BoT do not necessarily cover the full payment.