18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.
18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.
18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.
18.3. A description of the investment policy of the SWF should be publicly disclosed.
The risk exposures and use of leverage are outlined in the Investment Policy. Leverage is commonly used to rebalance and manage risk in the portfolio. It is also used in asset classes such as real estate and private equity, where it is an integral part of the underlying strategy and is monitored.
The decision to use external managers is left up to province’s investment manager AIMCo. AIMCo selects and monitors the performance of these investment managers.
The investment policy is publically available on the Heritage Fund’s website.