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As approved by the National Executive Committee April 27, 2006

The Canadian Media Guild will invest any available surplus funds and ensure such investments are consistent with the intentions of Article 2 of the CMG Bylaws.

Article 14.10 of the Bylaws of the Canadian Media Guild (“the CMG”) establishes that the Investment Committee will, by majority vote, oversee the investment of surplus funds of the Canadian Media Guild and other monies entrusted to it.

The Investment Committee will meet regularly with registered investment advisers to discuss the state of CMG’s investments and oversee the management of invested funds.

The Investment Committee will use the Socially Responsible Investment guidelines for Ethical Investments, developed by the CMG, to oversee the investment and administration of the CMG’s Defence Fund and a separate Severance Fund (for staff members of the CMG).

The Investment Committee will keep the National Executive Committee of the CMG advised of all such investments.

The Investment Committee is composed of three (3) CMG members in good standing, one of whom must be the Secretary-Treasurer of the CMG. The current membership is:

1) Rick Basarke, Secretary-Treasurer CMG
2) Scott Edmonds, Vice-President CMG
3) Jon Soper, Member in Good Standing

Investment Objectives

1) Surplus funds will be invested using the Socially Responsible Investment – Ethical Investing guidelines developed by the CMG. The Investment Committee may refer to SRI-EI organizations and or indexes to determine the scope of CMG’s investments.

2) Surplus funds will be invested in a manner which emphasizes the protection of principal, while also attempting to obtain the highest yield and liquidity available, and in a manner that allows sufficient diversification to help keep risk to a minimum.

3) The Investment Committee will endeavor to keep all funds in the accounts invested at all times.

Investment Guidelines

1) The CMG will not invest in instruments of companies that are significantly involved in:

a) the production of nuclear power,
b) the manufacturing of tobacco products,
c) the facilitation/manufacture of weapons

2) The CMG will avoid the instruments of companies that it knows:

a) have a consistently poor relationship with aboriginal communities
b) undertake questionable or fraudulent business practices
c) have a consistently poor employee relations record
d) have a consistently poor environmental performance record compared to industry counterparts
e) manufacture unsafe products

3) The CMG will endeavor to invest in the instruments of companies that:

a) develop good relations with the communities in which they operate,
b) encourage diversity in the workplace,
c) have good relationship with their employees
d) have progressive environmental protection records

4) The Investment Committee will periodically re-evaluate and recommend the appropriate asset ratio mix to ensure that the portfolio is structured in a manner that meets the financial operating requirements of the CMG.

5) Investments will consist only of Canadian government obligations backed by the full faith and credit of the Canadian government, provincial government obligations backed by the full faith and credit of a provincial government, Canadian government agency obligations backed by the full faith and credit of the Canadian government, United States obligations, U.S. agency obligations rated “AA” or better, investment-grade corporate securities, Guaranteed Investment Certificates, commercial paper, shares in companies listed on the TSE Index, Standard & Poors Depository Receipts and other index products based in either Canada, the United States or globally. The Investment Committee may use professional money managers to invest portions of the portfolio in equity investments.

6) Investments other than Canadian government bonds and U.S. government obligations, backed by the full faith and credit of the U.S. government, must meet the following quality standards:

a) Guaranteed Investment Certificates issued by a domestic bank or trust company having assets of at least two billion dollars ($2 billion) and rated at least “A” by at least one accepted rating agency. GICs must be eligible for coverage by the Canada Deposit Insurance Corporation.

b) High-grade corporate securities having a rating of “A” or better from at least one accepted rating agency. In the event of a downgrade in the quality of a previously purchased security, the Investment Committee may direct that the security still be held, provided that the average quality of the portfolio is considered to be of “investment grade”.

c) Investments rated below “investment grade” may be purchased only with the majority approval of the National Executive Committee, on the recommendation of the Investment Committee.

d) Maturities shall conform to instructions issued by the Investment Committee. The Investment Committee will use its best efforts to ensure liquidity to meet cash needs as forecasted.

7) The Investment Committee must ensure that it observes the following rules in making investments:

a) No short selling of securities will be permitted. No purchase of securities on margin will be permitted.
b) No purchase may be made of more than ten percent (10%) of all of the securities of any one issuer.
c) All funds must be managed by firms that are members of the Canadian Investor Protection Fund.

8) A report summarizing all trading activity will be sent to the National Executive Committee at least four (4) times a year. The NEC may request such a summary at any time.

9) Any investment not meeting the guidelines stated in this document must be pre-approved by a majority vote of the National Executive Committee before purchase. A previously purchased security found to be in breach of the guidelines may be held until it can be disposed of in a manner that does not harm the portfolio.

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