Intermediate Term Cash Management Investment Policies

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I. Purpose

Cash funds not immediately needed for operations in the current year may be invested over a longer horizon. Intermediate cash that may be invested in this program is defined as the combined college cash balance amount that exceeds the lesser of $10,000,000 or 3% of net assets.

II. Prescribed Types of Investment Securities and Limitations

The following investment grade securities may be used in the Intermediate investment program:

  1. Obligations of the U. S. Government backed by full faith and credit
  2. Obligations of agencies backed by the U.S. Government
  3. Investment grade corporate obligations
  4. Absolute Return fund of funds selected and recommended by the college’s investment advisory firm, acting as Outsourced Chief Investment Officer

III. General Limitations

  1. The investments listed in II. A, B, and C will be investment grade vehicles and will have no less than a AA rating. No single investment in this category will exceed $2,000,000.
  2. Investments in corporate obligations will not exceed 20% of the total investments in II. A, B, and C. No single investment in this category will exceed $2,000,000.
  3. Total investment in an absolute return strategy will not exceed 15% of the total Cash Management Program.

IV. Investment Review

  1. The Comptroller will distribute a monthly performance report on the activities of the Intermediate Cash Management Program to the Vice President for Finance and Business Affairs.
  2. The Comptroller may request the Subcommittee on Investments to add specific investment instruments, with appropriate limitations, to Section II. A. as market characteristics change over time.

In effect February 13, 2008.
Vice President for Finance and Business Affairs.