Investment policy

1. Introduction

1.1 The University of West London has adopted this investment policy which governs the investment of surplus cash so that it contributes to financing its core activities. The objective is to maximise investment income, while at the same time exercising prudence in managing investment risks.

2. Investment approach

2.1 The University of West London is committed to invest its surplus cash funds on a responsible basis. This Investment Policy guides the University to optimise its investment returns (whilst recognising its ethical and social responsibilities) and to manage investment risks prudently.

2.2 The University's investment policy is guided by ethical values and the need to manage Environmental, Social and Governance (ESG) risks in achieving this objective. The University will not knowingly invest in organisations who primarily demonstrate:

• Institutional violations of human rights, including the exploitation of the work force and use of child labour
• Discriminatory practices
• Explicit environmental damage
• Bribery and corruption

2.3 The University is committed to using best efforts to screen out specific sectors from investments including:

• Fossil fuels companies
• Arms and other companies that are complicit in the violation of international law

2.4 The University is committed to directly reinvest in community renewable energy and renewable energy projects on campus.

2.5 The University commits to using best efforts to publicly list all investments annually.

2.6 The University will only invest in institutions which have an appropriate Standard and Poor's (S&P) rating.

3. Investment management

3.1 The Board of Governors (through the Finance Committee) approves the investment policy which prescribes investment periods, investment limits per counterparty and credit rating thresholds. The committee members can be found on our Governance page.

3.2 The Chief Financial Officer is responsible for compliance with the investment policy by monitoring the credit ratings of counterparties, advising the Finance Committee and the Audit and Risk Committees of investment opportunities and perceived investment risks and advising any requirements to revise credit rating limits.

3.3 This investment policy is posted on the University’s website to facilitate access to students, staff and the general public for greater transparency.

4. Investment criteria

4.1 After considering ESG risks, the following investment criteria for surplus cash and money market investments are agreed as part of the investment policy. The University will only invest in institutions

• UK institutions with a rating of “A” or better (S&P or equivalent) for up to 12 months
• All non-UK institutions to have a sovereign debt rating of AAA

4.2 The credit limits for investment will be:

• £60m for any of the institutions which meet the criteria outlined in 4.1 above; UK Treasury Bills with no limit

5. Choice of investment provider

5.1 The Finance Committee would choose investment providers after assessing their financial viability/credit ratings and ethical investment policies. This decision would be scrutinised by the Audit and Risk Committee.

6. Mitigation

6.1 In the event the University’s investments face significant risks, immediate mitigation action, by transfer of assets, would be taken by the Chief Financial Officer following the Chair’s action of the Finance and Audit and Risk Committees to approve the emergency measures.