CFA Society Toronto - Board


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Page 79 of 196

A. PURPOSE The purpose of this policy is to provide a framework for the management of the Toronto CFA Society's (the "Society") financial assets. B. DESCRIPTION OF FUNDS In accordance with the Society's Reserve Policy dated April 2008, the Society's total cash reserves ("Total Reserves") are allocated into the following categories: i) Board-Designated Reserve Funds ("Designated Reserve Funds") including: a. Contingency Reserve Fund, maintained at not less than 50% of budgeted annual expenses b. Business Opportunities Fund maintained at a minimum of 25% of budgeted operating expenses c. Capital Reserve Fund currently budgeted at $250K d. Event Cancellation Reserve of 25% of total gross event costs ii) Unrestricted Funds (or "Excess Reserves") which are available for general use by the Society. C. INVESTMENT OBJECTIVES, RISK TOLERANCE AND ASSET MIX The primary investment objectives, in priority order, are to preserve principal, to maintain liquidity and to generate income. The policy takes into account the following considerations: i) the current and projected financial condition of the Society ii) short and medium term capital market conditions iii) the limited internal resources available to implement the policy i) BOARD-DESIGNATED RESERVE FUNDS Investment Objective These funds are viewed as longer term funds, with the primary objectives being capital preservation and liquidity. Income is a secondary objective. Risk Tolerance Low Asset Mix Policy CFA Society Toronto Board Manual 2016 Page 78 of 194

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