VCOM Institutional Policy and Procedure Manual

VCOM Policy and Procedure

Policy #B003

the Investment Committee; in selecting investment managers and reviewing such managers over time; in measuring and evaluating investment performance; and other tasks as deemed appropriate. The consultant(s) will read and agree to comply with this policy. b. Investment Manager. The investment manager(s) has direction to purchase, sell, or hold the specific securities that will be used to meet VCOM’s investment objectives. The manager will be accountable and responsible to achieve the goals for investment returns noted herein or as agreed upon. The investment manager(s) will read and agree to comply with this policy. c. Custodian. The custodian(s) will physically maintain the possession of securities owned by VCOM, collect dividend and interest payments, will redeem maturing securities, and will effect receipt and delivery following purchases and sales. Also, the custodian(S) may perform regular accounting of all assets owned, purchased, or sold, as well as movement of assets into and out of the VCOM’s investment accounts. Furthermore, the custodian(s) will ensure cash equivalents are purchased from institutions insured at the maximum amount allowed by the FDIC, and other investment instruments are insured at the maximum amount allowed by the Security Investor Protection Corporation (SPIC). Moreover, the custodian(s) will read and agree to comply with this policy. d. Additional specialists such as attorneys, auditors and others may be employed by the President and CFO to assist in meeting its responsibilities and obligations to administer the investments prudently. These other specialists will read and agree to comply with this policy 8. ASSIGNMENT OF RESPONSIBILITY 8.1 Responsibility of the President and CFO The President and the CFO are responsible to VCOM’s Board of Directors for the management of the investments of VCOM. They shall discharge these duties with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent man or woman, acting in a like capacity and familiar with such matter would use in the conduct of an enterprise of a like character with like aims. The specific responsibilities of the President and CFO to the investment management include: a. Projecting VCOM’s cash flow needs (“liquidity needs”), and communicating such needs to the Investment Consultants, and/or Investment Managers, if employed by VCOM, on a timely basis b. Determining the VCOM’s risk tolerance and investment horizon, and communicating these to the appropriate parties; c. Establishing reasonable and consistent investment objectives, policies and guidelines, which shall direct VCOM’s investments; d. Prudently and diligently selecting qualified investment professionals, if deemed appropriate; e. Evaluating on a regular basis, but no less than annually, the Investment Manager(s) that includes the performance of all investments, related returns, and compliance with this policy f. Developing and enacting proper control procedures; for example, replacing Investment Manager(s) due to fundamental change in investment management process or investment performance and returns Responsibility of Investment Consultant(s) The Investment Consultant’s role is that of a non-discretionary advisor to the President and CFO. Investment advice concerning investment management will be offered by the Investment 8.2

VCOM Investment Policy

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