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Policy

Investment Policy Statement Overview

What does IPS do?

  • Investment Policy Statement (IPS) sets out the guidelines for managing the Company’s investment assets, its fiduciary duties, governance and performance standards
  • IPS confers no contractual rights between Shareholders, Officers, Directors or Investment Advisors.
  • IPS delegates authority and responsibility to invest and monitor investment assets to CFO or appropriate officer.
    • Authorizes engagement of outside Investment Advisor
    • Authorizes Officer to open accounts, initiate transactions and receive information on behalf of the Company
  • IPS states Company’s objective to increase the reliable earnings from cash reserves and to build an endowment to increase long term capabilities and survival of the Company
  • IPS states the total return target of the portfolio while maintaining a proper allocation to high quality income and equity holdings.
  • Investment Categories
    • Operating cash
    • Cash reserves
    • Liquid holdings 1-3 year maturities
    • Maximum interest, long duration insured for cash flow
    • Long term endowment based on total return
  • Allocation guidelines and targets
    • Cash and near cash: %
    • FDIC insured certificates of deposit with maturities of five years or less: %
    • FDIC insured CD’s with maturities over five years: %
    • US Government and agency obligations:  %
    • Investment grade municipal bonds: %
    • Legacy planning non-insured allocations: %
    • Totals 100%
  • Restricts investment in certain types of instruments
  • Describes Legacy Planning Factors and Strategic Objectives