VCOM Institutional Policy and Procedure Manual

VCOM Policy and Procedure

Policy #B003

c. Investments shall be so diversified as to minimize the risk of large losses, which may also minimize the opportunity for large gains d. Cash or cash equivalents (short term) investments shall be employed productively at all times to provide safety and return; however allowing liquidity of funds when needed e. Moderate-term investments are those funds invested by VCOM, however maintained with the assurance of funds will be made available when needed and are generally kept for a twelve to twenty four month period; however invested in a manner where emergent funds may be obtained (liquidity) without great expense or loss. f. Funds that are not anticipated to be utilized for operations for a period of twenty four months or greater are transferred to the VC Endowment Trust from time to time; and are transferred only when determined by the Investment Committee and the Board as not anticipated to be required for operations of the College over a period of twenty four months or greater. 5. GOALS FOR RETURNS ON INVESTMENTS In typical economic conditions, all investments should attain or exceed the average of the appropriate standard benchmarks which must be identified in their respective portfolios by the Investment Advisor(s) and Manager(s). When reporting performance each manager must include comparisons of their returns to the appropriate indexes that are comparable to their portfolios. Overall, returns on the entire portfolio of investments should be calculated using a weighted-average methodology 6. ASSUMPTIONS a. Any VCOM investable deposits that exceed operating expense needs (less than 24 months) will be placed in the long term investment portfolio at the discretion of the President and the investment committee of the board. b. All parties that interact with VCOM on the management of its investment assets have fiduciary duty to act solely in the best interests of VCOM. VCOM’s investment committee of the board shall review the investments semi-annually and keep minutes and fiduciary files in order to ensure that everyone involves with the management of the investments is acting in the best interests of VCOM. c. VCOM shall liquidate investments to meet specific organizational goals and objectives, satisfy the wishes of the investment committee of the board as determined by the President and reported to the board at the regular semi-annual meetings. 7. DELEGATION OF AUTHORITY 8. The Chairman of the Board and the President have been delegated fiduciary responsibilities under the bylaws of the corporation. The President, the Chairman of the Board, the Treasurer, and the CFO, and a minimum of one (and up to three) additional board member shall constitute the investment committee of the board. The Investment Committee of the Board shall review and make determinations on the VCOM investments; and provide a report to the Board of Directors on the investments at each Board meeting. The President/Provost has the authority to make changes in investments under the VCOM investment policy and in accordance with the restrictions outlined below. If changes are made, the President/Provost will be responsible to provide a report on the changes to the Investment Committee. These include, but are not limited to: a. VCOM will utilize the services of an Investment Consultant. The consultant(s) may assist the President and CFO in establishing investment policy, objectives, and guidelines to present to

VCOM Investment Policy

Page 3 of 7