Responsible Investment Policy
Honouring Fiduciary Responsibility
Fiduciary responsibility refers to UBC's responsibility to manage trust funds in accordance with common law investment standards. All stakeholders expect UBC to provide investment returns over the long term to fulfil their intentions.
By investing in pooled funds, UBC is able to diversify its investments, thus reducing risk and minimizing fees and administrative costs. This approach allows the endowment to achieve the investment returns that a) meet or exceed the university's existing spending needs, and b) ensure the preservation and growth of the endowment for future generations of students, faculty, and staff.
Considering Environmental, Social & Governance Performance
UBC commits to incorporate ESG factors in its investments in the following ways:
- 1. Manager selection
When selecting and evaluating investment managers, UBC commits to integrate ESG factors. The university will expect all of their public equity managers to incorporate ESG principles in their portfolios within the next three years.
- 2. Investor engagement
UBC does not invest in companies directly, but rather through pooled funds, managed by external fund managers. Wherever possible, UBC will encourage its fund managers to use their proxy votes to encourage transparency on ESG policies, procedures, and other activities.
- 3. Direct engagement
While direct engagement with individual companies is not a practical option (as UBC does not invest directly in specific companies), where there is significant exposure to a company, industry, or nation that is facing a considerable ESG issue, UBC will encourage their investment managers to engage directly through available channels.
- 4. Collective engagement
On a selective basis, UBC will engage issuers, regulators, and industry groups (through third parties) where it is believed that a collective approach to engagement will be more effective than direct engagement.
Additional information on UBC's Responsible Investment Policy can be found on UBC Treasury's website.