100315 Investment Policy-doc - 070116 Investment Policy

By Frederick Willis,2014-08-11 17:17
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100315 Investment Policy-doc - 070116 Investment Policy



    Investment Policy

    Statement of Purpose

    The purpose of this policy is to establish guidelines under which Foundation funds can be invested.

    1. Goals and Objectives

    a. Safeguard principal

    b. Maximize contribution to operating budget

    c. Optimize income consistent with acceptance of risk.

    d. Ensure sufficient liquidity to meet the Foundation’s operating needs

    2. Long Term Goal

    Increase assets by at least the amount of inflation each year after expenses. “Inflation” shall

    mean the not seasonally adjusted consumer price index all items less food and energy (the

    so-called “core index”) as compiled and published by the US Department of Labor’s Bureau of Labor Statistics.

    3. Persons Who Have Investment Authority

    a. The Board of Directors is responsible for the investment portfolio of the Credit

    Union Foundation of Maryland and the District of Columbia. The Board has

    delegated authority to the Finance Committee for investment decisions. Within the

    limitations stated herein, the Finance Committee shall make all decisions regarding

    the disposition of Foundation funds. All investment transactions are to be made by

    the Executive Director and at least one member of the Finance Committee. The

    Finance Committee is composed of the Treasurer, Chairman, Vice-Chairman and

    one other member of the Board of Directors, and others as the Board shall appoint.

    b. The Executive Director of the Credit Union Foundation is responsible for

    interviewing investment brokers and evaluating investment vehicles within the

    guidelines of the investment policy and making recommendations to the Finance

    Committee. The Finance Committee Chairman and the Executive Director of the

    Credit Union Foundation, or their designees, are responsible for the implementation

    of investment decisions as approved by the Finance Committee.

    4. Eligible Investments

    a. Federally-insured shares, certificates or other debt instruments issued by credit

    unions or banks

    b. Shares, certificates or other debt instruments issued by credit unions or banks that are

    insured by American Share Insurance with an annual performance review.

    c. Treasury Securities without limitation

    d. Obligations issued by U.S Government agencies or sponsored enterprises without


    e. Stock mutual funds and bond mutual funds up to 5 % of portfolio assets

    f. Money market mutual funds up to 30 % of portfolio assets

    g. Shares, certificates or other debt instruments issued by federally-insured corporate

    credit unions

    5. Investments In Corporate Credit Unions

    Quarterly credit analysis will be conducted when deposits exceed the insurance limitations, if any, on investments and/or deposits in corporate credit unions. The analysis will include,

    March 15, 2010


    at a minimum, the credit union’s earning performance and capital level.

    6. Approved Dealers and Brokers

    It is essential for the Credit Union Foundation to investigate and review the security firms and the representatives with whom it transacts business.

    The following will be kept on file:

    a. Resume of each sales representative.

    b. Annual review of U4 of each sales representative.

    c. Most recent audited financials for each securities firm.

    d. Any additional information concerning the securities firm or representative. 7. Approved Broker(s):

    a. RBC Dain Rauscher

    b. UBS Financial Services

    c. Janney Montgomery Scott

    d. Mid-Atlantic Corporate Federal Credit Union

    e. Multi-Bank Securities, Inc.

    f. Raymond James & Associates

    8. Safekeeping Arrangements

    a. Investments shall be made in the name of The Credit Union Foundation of Maryland

    and the District of Columbia. Transactions shall be settled on a delivery vs. payment

    basis, with the exception of instruments issued by corporate credit unions and credit

    unions, which must be confirmed by initial transaction receipt and no less than a

    quarterly account statement.

    b. An individual confirmation statement must be maintained for each investment

    purchased or sold.

    c. A safekeeping report must be obtained from each agent and reconciled monthly.

    d. Approved Safekeeping Agent(s):

    i. Any Corporate Credit Union

    ii. RBC Dain Rauscher

    iii. UBS Financial Services

    iv. Janney Montgomery Scott

    v. Multi-Bank Securities

    vi. Raymond James & Associates

    9. Investments with Related Business Organizations

    For business reasons the Credit Union Foundation may choose to make an investment in a credit union service organization. Any such investment will require approval by the Board of Directors before the investment is made.

    10. Review

    A schedule of investments shall accompany the monthly financial reports and be reviewed by the Finance Committee. The Committee shall also review the investment policy each year to ensure that it complies with the goals, objectives and needs of the Foundation. 11. Adoption of Amendment

    The adoption of the Investment Policy and any subsequent amendment or modification thereof shall require approval of the Board of Directors.

    12. Prohibited Investments and Investment Activities

    Any investments not specifically approved by the Finance Committee or Board of Directors or which exceed the investment guidelines are prohibited.

    March 15, 2010


Approved By The Board of Directors and Effective: March 15, 2010

March 15, 2010

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