Investment Policy

The Trustees of St. Andrew’s Congregation of

The United Church of Canada at Toronto

INVESTMENT POLICY

I. The investment policy of the Trustees will be consistent with the Vision of the Congregation, namely:

To be a model for a successful, diverse, inclusive, urban congregation.

To be achieved by:

· Inspiring, relevant worship;

· caring for each other;

· offering opportunities for learning;

· inviting participation;

· using our resources responsibly; and,

· engaging our surrounding community.

In particular,

(i) The Trustees shall accumulate, administer and spend the investment funds of the Church in a manner consistent with the Vision of the Congregation.

(ii) The administration and state of the investment funds shall at all times be transparent. Any member of the Congregation is entitled to full disclosure at any time on request.

(iii) The Trustees shall make best efforts to conduct a minimum of one meeting a year with the Congregation’s investment advisors to review the performance of the investments, which meeting shall be open to all members of the Congregation.

(iv) The Trustees will not intentionally invest in any organization, corporation or venture whose objects are inconsistent with the Vision of the Congregation and the standards of the larger church. The Trustees recognize that given the complexity and interconnectedness of modern commerce, some conflict with the Congregation’s Vision and the investments chosen by the Church’s investment advisors may arise.

(v) Members of the Congregation will be encouraged in each year to contribute to the fund through specific donations and planned giving as a stand-alone item or as part of a larger stewardship campaign.

(vi) The Trustees will adhere to the following guidelines in the administration and disbursing of funds:

a. The Trustees shall advise the Congregation to create and maintain on an annual basis a capital reserve fund in an amount equal to 1% of the replacement cost of the Church building.

b. In any given year the Trustees will not disperse more than 6% of the fund for operating or other grants. The Trustees recognize that to ensure sustainability that grants should not exceed 4.5% of the capital of the fund calculated on a five-year rolling average basis.

c. Investments shall be managed by professional managers so as to achieve geographical and industry sector diversification. The managers will be given discretion to select individual instruments or funds.

d. In each year the Trustees will consider the capital requirements of the Church on a three- to five-year basis.

e. The Trustees will allocate investments on the basis of a minimum of 20% cash and fixed income and a minimum of 20% of equities. Precise asset allocation will be determined by the Trustees from time to time.

II. With respect to the Church’s commercial lease in each year the Trustees will, in conjunction with its legal advisors, verify the status of leases, payment of municipal taxes and certificate insurance of its Ground Tenant.

III. Every three to five years the Trustees will obtain an appraisal of the Church’s real property for insurance and other purposes.

IV. The Trustees will maintain insurance to cover the replacement cost of the building and contents of the Church and commercial general liability insurance to cover claims which may arise in relation to the operation and administration of the Church.

NOTE: The Trustees recognize that any investment strategy will have risks. Investment in stocks and longer-term bonds carries risk, but there may be higher returns over a long period. Stock dividends may be less than long-term bond yields. Capital gains in the stock market may benefit the Church in the long-term but may be volatile in the short-term. Investments in cash or fixed income also run a risk, namely, the loss of value due to inflation.

The Trustees acknowledge that no single investment strategy is safe for all purposes and in all circumstances. Some risk must be accepted.