Optimum Utilisation of Resources

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THE CAISSE’S APPROACH TO THE OPTIMAL UTILIZATION OF RESOURCES

PREAMBLE
The initiatives of the Caisse with regard to the optimal utilization of resources are taken within the context of: / The Caisse’s mission, which consists of managing depositors’ funds in order to achieve an optimal return on capital within the framework of depositors’ investment policies while at the same time contributing to Québec’s economic development; The Caisse’s ambition to become recognized as a benchmark organization among institutional fund managers, particularly by exercising leadership in the fields of governance and integrated management and by keeping in mind: The Caisse’s structures, activities and ways of conducting business; The relevant work performed by Internal Audit.

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WHAT IS MEANT BY OPTIMAL UTILIZATION OF RESOURCE?
The closest reference to the expression "optimal utilization of resources" is "value-for-money". According to this universally-recognized concept, all business processes are characterized by the use of a group of inputs (resources), which are transformed (activities) into outputs (results). The optimization of resources is based on three characteristics: economy, effectiveness and efficiency. The economy of resources consists of acquiring resources of the required quality, at a reasonable cost and in a timely manner. The effectiveness of resources is aimed at ensuring the adequacy of resources relative to business needs and their appropriate use. The efficiency of resources is measured by the attainment of an organization’s business objectives.

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OPTIMAL UTILIZATION OF RESOURCES AT THE CAISSE
The Caisse’s Board of Directors and senior management are committed to ensuring that: / The Caisse’s strategic orientations, business plans, administrative management, operational and control practices as well as systems and tools are established or designed so that their implementation generally allows the organization to achieve the results it seeks, which is referred to as "effectiveness"; The resources needed to achieve results are acquired and managed with due regard for "economy" and "efficiency".

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The Caisse’s resources, processes, systems, tools and controls are designed to form a coherent whole so that it can meet the depositors’ expectations. In order to achieve this objective, the Caisse’s senior management optimizes its resources in order to: / / / Achieve depositors’ performance objectives; Develop management practices that correspond to the sound practices used by the institutional fund management industry; Make proper use of the funds made available to manage its activities.

DEFINITION OF RESOURCES
The Caisse uses the following resources, grouped into two categories, to achieve its mission:

INVESTMENT RESOURCES
They consist of depositors’ holdings as well as the asset mix resulting from the depositors’ investment policies. This is the Caisse’s most important type of resource. It is this resource for which the Caisse must strive to earn an optimal return within the framework of depositors’ investment policies. The four following resources are grouped together under "Operating Resources" since they represent the resources which are made available to the Caisse’s senior management by the depositors and the Board of Directors. These resources are vital to the achievement of the depositors’ objectives.

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OPERATING RESOURCES
Financial Resources They consist of all the financial means at senior management’s disposal to manage depositors’ holdings and realize the Caisse’s business plan. They include operating budgets, capital budgets as well as all the costs pertaining to the trading of investments, most notably commissions and fees paid to professionals or financial intermediaries. Human Resources Internal Management This refers to the Caisse’s employees and the infrastructure set up to adequately manage the employer/employee relationship. These resources also include the...
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