G-31-8.5 Investment Policy
Funds of the College will be invested in accordance with the following primary investment objectives.
- Primary Investment Objectives:
- Preservation of capital- Investments shall be selected in a manner that seeks to ensure the preservation of capital in the overall investment portfolio. The preservation objective will be to mitigate the default and interest rate risk.
- Liquidity- Investments shall be selected in a manner that ensures sufficient liquidity to meet all operating and construction requirements.
- Yield- The investment officer shall strive to maintain a maximum rate of return within the constraints of all primary objectives, Oregon Revised Statutes and Board adopted investment policies.
The Associate CFO will have the day-to-day responsibility of maintaining the College portfolio of investments. They will maintain available cash adequate to meet the current requirements of the College.
The College will utilize the following investment instruments:
U.S. Treasury bills, notes, bonds U.S. Government agency securities Bankers Acceptances Local Government Investment Pool Time Certificates of Deposit - Commercial Banks (Collateralized as required by the State of Oregon Banking Division.) Time Certificates of Deposit - Savings and Loans (Collateralized as required by the State of Oregon Banking Division.) Commercial Paper - Investments in commercial paper of Oregon issuers are limited to those rated A-2 or better by Standard and Poor Corporation, P-2 or better by Moody's Investors Service; holdings in any one issuer may not exceed 10% of the investment portfolio.
Investments shall be made so that at the time of purchase the total investment in any type of instrument does not exceed the following maximum percentages:
U.S. Treasury bills, notes, bonds 100% maximum Federal agency bonds and discount notes (No more than 25% in securities of single issuer) Local Government Investment Pool 100% maximum Repurchase Agreements (Must be collateralized 102% of market value with specific assignment of U.S. Treasury and Federal agency securities; collateral must be held in safekeeping at depository institution) Bankers' Acceptances 40% maximum Time Certificates of Deposit 50% maximum Commercial Paper 20% maximum
The College will invest in no instrument with a maturity longer than 18 months without the specific approval of the COCC Board of Directors and the Oregon Short-Term Fund Investment Manager.