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SFV-CAMFT Investment Policy

Accepted: February 7, 2016 

1. One criterion in measuring an Chapter's management is the ability to keep cash resources productively employed.  Cash on hand not currently needed should be invested so as to earn a competitive rate of return and/or achieve appreciation of assets consistent with maintaining the relative safety and security of the funds invested. 

2. To maximize investment opportunities, checking and/or disbursement account balances should not exceed amounts necessary for the Association to comfortably meet its obligations on a timely basis. 

3. Determination of type of investment shall be made by the Board of Directors or its designee, based upon cash flow and need. The Budget & Finance Committee shall recommend to the Board of Directors an investment adviser, broker, or money manager to invest association funds pursuant to 4.B. of this policy. The investment adviser, broker, or money manager shall determine how the funds are to be invested and when they are to be invested. 

4. Acceptable Investments

   A. Government Insured or Secured Investments  

    (1) Savings Accounts
    (2) U.S. Government Treasury Bills, Notes, Bonds and other U.S. Government  Securities
    (3) Certificates of Deposit (federally insured)
    (4) Bank Repurchase agreements secured by U.S. Government Bills and Securities with maturity of five years or less
    (5) Money Market Funds limited to the above-mentioned investments
    (6) Municipal Bonds:  Investment Grade

   B. Equities, Bonds and Other Investments

     (1) Investment Grade Corporate Bonds
     (2) Preferred Stock
     (3) Common Stock
     (4) Mutual Funds Comprised of the Above Mentioned Securities
     (5) Prime Corporate Commercial Paper
     (6) Banker’s Acceptances
     (7) Commercial Paper:  Investment Grade
     (8) Covered Call Options to cover Common Stock ownership

5. Asset Allocation target amounts shall be as follows:

  • Equities 20%
  • Corporate Bonds 20%
  • Government Bonds 25%
  • Municipal Bonds 15%
  • Certificates of Deposit 15%
  • Cash and Other Investments 5%

6. There will be no investment in limited partnerships or REITs. 

7. At any board meeting or other occasion at which a decision to purchase, or to consider the purchase of an investment, or the selection of a depository for funds, any party having a financial interest in the investment or depository shall state, and there shall be recorded in the minutes or other record, the fact of the financial interest and the amount thereof.  Having made this disclosure, the interested party may participate in discussions but may not vote on such questions. 

8. In addition to the investment goals of safety, liquidity and return on investment, CAMFT will attempt to have investments that are believed to have a positive social, economic and environmental impact.

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