The Terms of Reference of Investment Committee
Subject to the powers and duties of the Board and to the requirements of the Companies Act, 1956, the Investment Committee will perform the following duties:
1) Investment Statements and Risk Policy: Review and recommend to the Board at least annually:
(a) the Investment Statements; and
(b) the Risk Policy.
2) Implementation of Investment Policies: Receive reports on the implementation of the Investment Statements and the Risk Policy.
3) Compliance with Investment Statements and Risk Policy: Review, evaluate and approve procedures that Management has implemented to monitor compliance with the Investment Statements and the Risk Policy by receiving Management’s annual report on specified internal controls audited by the external auditor.
4) External Managers – Criteria and Process for Selection: Oversee the criteria and process for the selection of external investment managers with discretionary authority to invest the assets of the CPP Investment Board.
5) Engagements of External Managers:
Approve the engagement of investment managers with discretionary authority to invest the assets of the CPP Investment Board.
6) External Managers – Monitoring:
Oversee the process for monitoring external investment managers with discretionary authority to invest the assets of the CPP Investment Board.
Approve the selection of custodians.
8) Investment Transactions:
Approve Investment Transactions (as defined in the Authorities Policy) specifically outlined in the Authorities Policy.
Carry out other duties as may be determined from time to time by the Board.
The Investment Committee shall report its discussions to the Board by distributing the minutes of its meetings and, where appropriate, by oral reports at Board meetings.
11) To assess the Plan recommended by the GEC and make appropriate recommendation to the Group Board.
12) To review on an ongoing basis the appropriateness of the Plan in the light of economic and business conditions affecting the Company, and make recommendations for Board approval as may be appropriate.
13) To ensure that investments are made in accordance with the Plan.
14) To provide the Board quarterly reports on investment performance.
15) To meet at least quarterly.
16) To monitor performance, including the performance of outside investments managers, to ensure that investment returns fall within acceptable limits.
17) To provide independent input to the Board on overall investment strategy and portfolio positioning matters, as required.
18) To review the governance process and policies in place on an annual basis and provide appropriate assurance to the Board.
19) To consider and if appropriate approve any specific investments in excess of Plan limits.
20) To consider and if appropriate recommend to the Board for approval any changes in limit thresholds above which the Board refers to the Investment Committee.