CANADIAN ASSOCIATION OF PHYSICAL MEDICINE AND REHABILITATION

Investment Guidelines
Effective Date: Feb. 2, 2004 Approved by: Executive Feb. 2, 2004

Governance

Policies and practices governing the investment of CAPM&R funds are the responsibility of the Executive.

Investments must be made with the care, skill and diligence that a prudent person in similar circumstances would exercise. Investment practices must comply with the limitations and requirements of applicable laws and regulations.

Regular financial reporting will comply with the Association Bylaws.

Investment Objectives

The funds of the Association are to be managed in order to achieve the following objectives:

1. Generate an annual income available for disbursement as determined by the Executive
2. Achievement of financial performance standards
3. Preservation of real capital
4. The provision of immediate liquidity
5. Low risk configuration of investment diversification.

Policy

CAPM&R will deposit and keep reserve funds, any accumulated operating surplus, and accumulated interest in accounts or instruments as follows:

1. In investments in accordance with the Canadian Corporation Act Part II governing not-for-profit organizations
2. In accordance with the Bylaws of CAPM&R
3. In an account or instrument insured by the Canadian Deposit Insurance Corporation or by the Credit Union Deposit Insurance Corporation
4. In secure instruments with low to moderate risk only
5. With every effort to exclude investments in any area with negative health interests
6. In other investment instruments as the CAPM&R membership and Executive advise.

Conflicts of Interest

1. Except as permitted by law, no Committee member, officer, employee, actuary, advisor, auditor, lawyer, portfolio manager or other person appointed to carry out the duties and responsibilities in connection with the management or administration of the Funds (an agent), shall knowingly permit his or her interest to conflict with his or her duties and powers in respect of the Funds.
2. A conflict of interest is deemed to include any direct, indirect, actual or perceived material pecuniary interest of an agent in any arrangement, contract, investment, transaction or other matter in which the Fund participates or proposes to participate. The pecuniary interest of an agent is deemed to include that of:

2.1 his or her spouse

2.2 any person with whom an agent is living in a relationship outside marriage

2.3 any member of the agent's family who shares his or her home

2.4 any corporation or trust controlled by an agent or in which he or she has a substantial beneficial interest

2.5 any individual, corporation or trust which has a financial dependency on the agent

3. Agents who are also investment managers shall further conduct their activities in a manner consistent with the Code of Ethics and the Standards of Professional Conduct adopted by the Association for Investment Management and Research.