We invest to generate a predictable, sustainable and appreciating income stream. We then use this money to deliver programs and initiatives in the Basin, invest in Basin businesses and real estate, and fund our corporate operating expenses.
Many of our investments also advance social, economic and environmental well-being in the region. For example:
- our investments in hydropower facilities create employment and fund environmental activities
- our investments in Basin-based businesses benefit local economies
- our investments in seniors living communities help provide local, innovative living options for Basin seniors.
In 1995, the Province of British Columbia endowed us with $321 million: $276 million to invest in regional hydropower facilities and $45 million to invest otherwise. By carefully investing this money, we have increased the book value of our assets over the past 25 years to $2.1 billion, generating an annual return in excess of $88 million. We then re-invest these dollars in the Columbia Basin region.
Each year in Our Trust magazine, we highlight a few examples of our investments in Basin-based businesses. We also post occasional updates about our other investments.
View all Investment articles.
What We Invest In
To make sure our income is predictable, sustainable and growing, we invest in hydropower facilities, private placements and market securities.
We also invest in Basin-based businesses through our Impact Investment Fund. The fund supports business opportunities that are high risk and may not offer adequate financial returns to an investor, but will benefit Basin residents and communities in some other way. For example, it may create jobs, address a community need, help the environment or support arts and culture.
How We Manage Our Investments
Our Statement of Investment Policies and Procedures governs how we manage our investments. It includes seven beliefs:
- We believe that future generations should benefit from the same level of support as current ones. That’s why we invest and spend in a way that considers the potential effects of inflation.
- Our priority is to invest in the Basin. This is a small region, however, so we also invest some of our money in market securities.
- We choose investments that adhere to high ethical and environmental standards and display strong corporate governance. These types of investments also perform well and are profitable.
- We are a prudent investor and make sure that the potential returns we receive reflect the amount of risk we assume.
- We recognize that managing risk is just as important as generating returns.
- Though we invest much of our money in hydropower facilities, we try to invest in a variety of opportunities.
- We value partnerships and, when possible, invest in co-operation with other organizations.
Paul Maier – On Leave
Manager, Commercial Business, Investments & Economic Development