Investment programs & pools

Where does the money go?

Student support

The CUiF manages endowed gifts and donations that primarily fund scholarships and bursaries, ensuring long-term support for students. These donations are designed for specific purposes, with a portion of investment returns allocated to the university, while the remainder is reinvested to grow the capital base. This dual approach aims to preserve and enhance purchasing power, ensuring these funds continue to support students for generations.

To balance growth and annual distributions, the CUiF operates under the university's Endowment Spending and Capital Encroachment Policy (CFO-11):

• A baseline annual distribution of 3.5 per cent of investment returns is provided to the university
• The spending policy is reviewed every three years and reported annually to the university’s board of governors as part of its annual financial reporting

Debt repayment

Under the Government of Quebec’s provincial funding model, universities must raise capital through debt to finance infrastructure projects and accumulated operating deficits. To ensure long-term financial sustainability and intergenerational equity, Concordia has established sinking funds that set aside capital for future debt repayment.

• These funds are integrated into the university’s Capital, Asset Management, Funding and Financing Policy (CFO-4) and are designed to preserve capital while meeting investment targets
• When successful, these sinking funds help create fiscal capacity in alignment with CFO-4’s affordability targets, providing the university with an additional, diversified funding source for both operational and capital needs
• The financial health of the sinking funds is assessed annually through capitalization ratios and reported to both the finance committee of the board of governors and the board of directors of the CUiF

Cash management

Concordia holds restricted and dedicated funds, such as those related to the university’s group insurance plan, which require careful cash management. While these funds often have a shorter investment horizon, they are actively managed to maximize returns within their available timeframes.

• The goal of this program is to generate additional returns over the mid-term while exceeding both the university’s cost of capital and market risk-free rates
• This ensures that even short-term funds contribute to Concordia’s overall financial resilience and sustainability.

Pool structure

Given the diversity of investment programs, the CUiF also employs a multiple-investment-pool structure to ensure each program’s objectives are closely aligned with its investments.

To effectively manage varying capital needs and investment horizons, the fund is structured into long- and mid-term pools, each with its own asset allocation policy. This framework is designed to optimize risk-adjusted returns while ensuring investments align with the specific timeframes of each program’s financial requirements.