InvestmentPolicy.docVIP

SAMPLE INVESTMENT POLICY FOR NYC DISTRICT MANAGEMENT ASSOCIATION, INC. Adopted by the Board of Directors on / /15 Prepared by Lawyers Alliance for New York in partnership with the New York City Department of Small Business Services Current as of 4/27/15 Purpose The purpose of this policy is to set forth the standards and guidelines governing the investment and management of the District Management Association’s assets by its Board of Directors. Assets of the District Management Association The District Management Association’s assets consist of (a) cash in the District Management Association’s checking account intended to be used to cover its day-to-day operations and program expenses, and (b) certain short-term investments such as savings accounts, certificates of deposit and money-market funds held in reserve to support the District Management Association’s mission and its future operations and/or program expenses. The District Management Association holds no stock, bonds, or any other type of securities. Investment and Management Objectives The District Management Association’s objectives are to preserve its assets and to invest such assets to realize earnings thereon in a manner that allows for immediate liquidity so as to assure their availability to the District Management Association for its operational and programmatic needs. Investments will be diversified so as to limit the risk of loss resulting from concentration. The District Management Association’s cash-flow structure and liquidity needs are such that it does not invest assets for the long-term and has a low risk tolerance. Responsibilities of the Board of Directors In managing the assets of the District Management Association, the Board of Directors will act in good faith and with the care an ordinarily prudent person in like position would exercise under similar circumstances. The Board will from time to time review the allocation between the Distric