CBT has an Investment Program which prudently invests the $321 million endowment in order to deliver long-term benefits to the residents of the Columbia Basin. This Investment Program currently invests in power projects, private placements and market securities. The objective of the Program is to generate a predictable, sustainable and appreciating income stream to fund CBT's current and future Delivery of Benefits activities and corporate operating expenses.
Predictable investment returns allow CBT to confidently forecast the amount of funds that will be available for Delivery of Benefits programs and initiatives. Sustainable investment returns do not vary widely from year-to-year. Therefore, the funding available for Delivery of Benefits programs and initiatives will be relatively stable. Appreciating investment returns are required to offset the effects of inflation, as well as grow the Delivery of Benefits programs and ensure future generations receive the same or greater benefit as do current residents.
In the spring of 2006 CBT set out to define an enterprise wide investment policy that would govern the management of the Provincial endowment. After an extensive development process that included consultation with financial industry professionals, regional stakeholders, and Basin residents at large, CBT's Board adopted a new Statement of Investment Policies and Procedures (SIPP) in July 2007.
Embedded in the SIPP are seven foundational investment beliefs: