Background on Investment Pool
The Statement of Investment Policies and Procedures dictates McMaster’s investment strategy and objectives. The overall objective of the investment portfolio is to generate income to support the University’s research and teaching mission and to help support student success. Investment returns support student scholarships and bursaries, research chairs and other expenses (e.g. library and museum). Longer-term returns support capital projects, such as new classrooms, academic spaces, and research facilities.
The University has been a signatory to the United Nations Principles for Responsible Investment (UN PRI) since 2018, and supports a transition to a sustainable, just, and net zero carbon economy and society. Our strategy involves the incorporation of environmental, social, and governance (ESG) considerations in investment manager selection, monitoring, and asset allocation decisions.
As dictated by our budget model, tuition is not used for investment dollars. Instead, most of the funding for investments comes from donations or other sources.
The Board of Governors is responsible for the overall Investment Pool management; however, the Investment Pool Committee (sub-committee of the Board) oversees the investment strategy. Investments are managed by professional third-party investment managers and the university has between 15-20 investment managers at any one time. Each manager is reviewed regularly to ensure their approach follows McMaster’s Investment Pool guidelines and commitments, such as United Nations Principles of Responsible Investing (UN PRI), and also fits with the approach of other managers.
Submission Process
Submissions will be shared with the Investment Pool Committee. Please be aware that McMaster‘s governance follows a quarterly cycle and, depending on the volume of submissions, may take time to review.
Input will be reviewed with consideration of Responsible Investment principles that McMaster follows. It may consider other factors such as consistency with University policies, feasibility, impact on investments, duplication of past requests and whether the issue would be better addressed using other levers available to the University.
If deemed appropriate, the Investment Pool Committee Chair will forward the Committee’s advice and recommendations to the relevant Board committee (e.g., Planning and Resources Committee), which will use this input to advise the Board of Governors confidentially.
While the review process is confidential, McMaster will make reasonable efforts to provide community members who submitted input with general information about how their requests were considered and any actions taken.