Investment Committee

 

Charge: 

Charter for the Greenbelt Homes, Inc. (GHI) Investment Committee

The Investment Committee is created by the GHI Board of Directors (BOD) and empowered to invest such cooperative funds that are not needed for current operations.   The committee shall be comprised of a minimum of five persons, all GHI members, the majority of whom shall also be members of the BOD. The GHI Director of Finance shall serve as the committee's Staff Liaison.

The Investment Committee shall:

  • Invest the cooperative’s funds in accordance with the Bylaws adopted by the membership of the cooperative and in accordance with the Investment Policy adopted by the BOD.
  • Recommend to the BOD firms to invest these funds and to serve as financial adviser.
  • Consult with independent professional financial advisers as appropriate.
  • Exercise sound judgment in matters concerning GHI's investments.
  • Monitor investments to ensure that funds are available when needed for operations, replacements, or other capital projects.
  • Monitor investments to assure compliance with state and federal investment regulations.
  • Evaluate the status of investments, at least quarterly, to assure compliance with the goals of GHI's Investment Policy.
  • Make a written report to the BOD, at least semi-annually.
  • Prepare a report for inclusion in GHI’s annual report to the membership.
  • Recommend modifications of the Investment Policy, if and as appropriate.
  • Recommend modifications to the Investment Committee Charter, if and as appropriate.

 

Attachments:      Section 9 of GHI Bylaws

                              GHI Investment Policy

Bylaws 

§9. Loans and Investments.

The Board of Directors shall have the authority to invest the funds of the Corporation, exercising sound judgment and consulting with independent professionals as appropriate. An investment policy and guidelines shall be established and reviewed periodically by the Board. A two thirds vote of the entire Board shall be necessary to change the investment policy. The Board shall ensure that the funds of the Corporation are invested in keeping with the requirements of the investment policy and that the performance of these investments is carefully monitored. The Board shall report to the members annually on the status and performance of all investments. As part of the annual financial audit, the auditor will review investments for compliance with the current investment policy.

 

 

INVESTMENT POLICY‐ GREENBELT HOMES, INC.

Dated 12/15/2011

The Board is responsible for overseeing the administrative and investment management policies of the corporation. This includes, but is not limited to, the selection of the appropriate asset allocation, allowable ranges of holdings by asset class, the selection of investment managers, as well as defining acceptable securities, investment performance expectations, and monitoring compliance with state and federal investment regulators. The Board will communicate investment policy, guidelines, and performance expectation to the Investment Managers. In addition, the Board will also review and evaluate investment performance regularly to assure the policy is being followed and progress is being made toward achieving

the objectives. 

 

Investment Objectives

A. Preservation of Purchasing Power. Asset growth of contributions and withdrawals should exceed the rate of inflation to preserve the purchasing power of the Fund's assets.

B. Preservation of Capital. Capital is to be protected.

C. Total Return. The investment should achieve as high a rate of return as is prudent. 

 

Investment Guidelines

High levels of risks are to be avoided.

The assumption of controlled risk is warranted and encouraged to allow the opportunity to achieve satisfactory long‐term results.

Investments should be for a period of time consistent with the needs of the cooperative.

Undue speculation is to be avoided.

The status of the investments will be evaluated at least quarterly.

Consideration should be given to co‐op business ventures.

Investments eligible for purchase will have the following characteristics:

1. They must be readily marketable at a fair price, which is readily ascertainable.

2. They must be in one of the following approved asset types:

A. Long term investments (maturities greater than 1 year from date of purchase):

i. At the time of purchase at least 80% shall be invested in one or more of the following:

a. U.S. government treasuries, agency securities and agency backed obligations; or

b. Certificates of deposit, federally insured (U.S.A.);

c. Commercial paper rated BBB or better;

d. Corporate notes and bonds rated BBB or better;

e. Money funds;

f. Share loans to GHI members;

g. Mutual bonds having an average rating of at least A;

h. Internal loans to GHI and its subsidiaries

ii. At the time of purchase, no more than 20% may be invested in the following:

a. Small, medium or large cap mutual funds

b. Cooperative business ventures.

B. Operating funds shall be invested in:

i. U.S. government agency securities and agency backed obligations;

ii. Certificates of deposit;

iii. Bank repurchase agreements secured by U.S. government securities;

iv. Federally insured bank accounts.

C. The following types of investments are prohibited:

i. Commodities;

ii. Letter stocks and bonds;

iii. Margin purchases;

iv. Partnerships;

v. Venture capital;

vi. Direct foreign (non‐U.S.A. based) investments.

D. Investments should be well diversified to avoid undue exposure to any single economic factor, industry group, or individual security.

i. At the time of purchase, no more than 7% of the total assets shall be invested in the securities of any one corporation.

ii. At the time of purchase, no more that 25% of the total assets shall be invested in any one industry.

iii. At the time of purchase, investment in any issue (debt or equity) shall     represent not more than 7% of the total issue.

iv. The above percentage limitations do not apply to the following:

a. Obligations of the U.S. government;

b. Obligations of U.S. government agencies.

c. U.S. Government agency backed obligations that they guarantee.

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Members: