The Short-Term Fund of Queen’s University consists of money market and fixed income investments with average terms to maturity of 36 months or less.
The primary objective of the Short-Term Fund is to preserve capital and minimize liquidity and investment risk in order to meet the cash needs of the University.
A secondary objective is to obtain a reasonable level of return commensurate with a low-risk, highly liquid portfolio.
In pursuing its mission, the University accumulates excess cash balances that are not required for short-term operating or capital purposes. In addition, the University raises funds on capital markets for capital projects and other purposes. The cash surpluses are invested in securities approved under this policy to earn interest income above the amount that would be earned if held in corporate bank accounts.
These excess cash balances consist of the day-to-day receipts of the University, which arise from all sources, including student fee revenue, government grants, research contracts, donations and receipts from capital markets. Some of these cash balances are required within a three-year time period and are not suitable for long-term investment. Such funds are invested under the terms of this policy, and are collectively referred to as the Queen’s University Short-Term Fund. The remaining balance may be invested in the Pooled Investment Fund.