The Investment Policy (the "Policy") governs the management of the investments (the "Fund") of the Lucie and André Chagnon Foundation (the "Foundation"). Its provisions reflect the instructions of the Board of Directors (the "Board"). All persons involved in managing the Fund, including trustees and Foundation employees, are required to comply with these provisions. The Fund is managed in accordance with all applicable laws. In the event of conflict, the latter take precedence over the Policy.

The Foundation’s assets are managed with the goal of achieving the best risk-adjusted returns in order to reach targeted goals.

The Foundation considers its financial capital to be one of the levers at its disposal to achieve its mission. It therefore seeks to invest that capital in such a way as to have a positive, sustainable impact on society and the environment.

Financial objectives

Since the effects of social change can take generations to become apparent, the Foundation is intent on ensuring the continuity of its social action. To make certain that preventive, concerted action remains a central priority of Québec society, the Foundation aims to generate sufficient investment return to maintain its long-term capacity for support.

The Foundation’s goal is to generate sufficient returns to maintain its 2012 capacity for support, adjusted for inflation. The returns targeted by the Foundation must take into account the Canada Revenue Agency’s 5% disbursement quota, inflation and the administrative costs involved in running its operations.

To determine if this objective can be reached, the Foundation evaluates whether current capital projected over the next 30 years is sufficient to maintain the Foundation’s support capacity.

Other objectives

In addition to achieving a financial return, the Fund also strives to make a positive contribution to society and the environment. It is hoped that the Fund’s social and environmental objectives will be further clarified as soon as possible, in an orderly way.

The Foundation is committed first and foremost to investing with external managers who have high standards in the area of sustainability and responsibility. It also believes that shareholder engagement is a valuable awareness tool for companies. It works with a specialized firm to establish an engagement strategy with certain companies in its portfolio on a segregated basis.

The Foundation is a member of the Responsible Investment Association and the Canadian Coalition for Good Governance, both of which encourage asset holders to adopt good investment and governance practices..

The external investment managers who manage the Foundation’s public-equity portfolios on a segregated basis have specific instructions not to invest in companies in the GICS (Global Industry Classification Standard) energy sector or in companies largely connected with tobacco (including cannabis).

The use of products offered by external managers is prioritized. In certain cases, however, and with the approval of the Investment Committee, in-house management may be used for strategies, investments or financial operations that call for replicable, transferable expertise and that require a simple operational structure.