short-terminvestmentpolicy.docVIP

Short-Term Investment Policy Table of Contents I. Governing Authority 3 II. Scope 3 III. General Objectives 3 Safety 3 Liquidity 3 Yield 3 IV. Standards of Care 4 Prudence 4 Ethics and Conflicts of Interest 4 Delegation of Authority 4 V. Custody, Trust, and Controls 4 Custody /Trust 4 Internal Controls 4 VI. Suitable and Authorized Investments 5 Investment Types 5 Duration 5 Collateralization 5 Permitted Investments 5 VII. Portfolio Risk Management 7 Interest Rate Risk 7 Credit Risk 7 Liquidity Risk 8 VIII. Investment Parameters Diversification 8 Portfolio Diversification 8 Security Downgrades 8 Selection of Broker/Dealers 9 Engagement of Investment Managers 9 IX. Portfolio Benchmarks 10 I. Governing Authority The University’s investment program shall be operated in conformance with applicable federal, state, and other legal requirements, including, but not limit to, that certain Management Agreement dated November 15, 2005, by and between the Commonwealth of Virginia and The Rector and Visitors of the University of Virginia, as amended (Chapter 3 of Chapter 943 of the 2006 Virginia Act of Assembly) (including Exhibit R, Policy Governing Financial Operations and Management, thereto); the Security for Public Deposits Act, Chapter 44 (§ 2.2-4400 et seq.) of Title 2.2 of the Code of Virginia, as amended; the Investment of Public Funds Act, Chapter 45 (§ 2.2-4500 et seq.) of Title 2.2 of the Code of Virginia, as amended; the Uniform Prudent Management of Institutional Funds Act, Chapter 15, Article 1.2 (§ 55-268.11 et seq.) of Title 55 of the Code of Virginia, as amended; and § 23-76.1 of the Code of Virginia, as amended, concerning the University’s investment of endowment funds, endowment income, and gifts. II. Scope The purpose of this policy is to set guidelines for the parameters, responsibilities, and controls for the short term (24 months or less) investment of University funds. Proceeds from tax-exempt bond is