Investment Committee

 

Charge: 

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

The Investment Committee, created by the GHI Board of Directors (BOD), is empowered to recommend investments of the funds of the corporation.   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 Investment Committee shall:

The Investment Committee shall:

  • Recommend to the BOD investments of 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 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 as appropriate.
  • Recommend modifications to the Investment Committee Charter as appropriate.
  • Carry out other duties as assigned by the BOD

 Section 9 of GHI Bylaws - GHI Investment Policy

                              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 1/14/2021

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 Capital. Loss of capital is to be avoided.

B. Total Return. The investment should achieve as high a rate of return as is reasonable. 

 

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 held for a period of time consistent with the needs of the cooperative.
  • The status of the investments will be evaluated at least quarterly.
  • Investments should be well diversified to avoid undue exposure to any single sector, industry or individual security.

1. Funds of the corporation may be invested in the following areas:

  • Money market mutual funds;
  • Bank repurchase agreements secured by U.S. government securities;
  • U.S. government treasuries, agency securities, and agency-backed obligations;
  • FDIC-insured or NCUA-insured certificates of depposit and bank accounts.

2. Funds of the corporation not expected to be needed for at least two years on a last-in-first-out basis may be invested in the following areas as well as those listed in (1) above:

  • Mutual funds at least ninety-five percent invested in the instruments listed in (1) above:
  • Individual corporate notes and bonds rated BBB or better at the time of purchase;
  • Bond mutual funds or ETFs with an average credit rating of A or better at the time of purchase;
  • Deferral of fees by members;
  • Internal loans to GHI and its subsidiaries;
  • Cooperative business ventures, not to exceed twenty percent of total funds of GHI at the time of purchase.

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Members: 
  • Jason Luly (Chair)
  • Chuck Hess
  • Denna Lambert
  • Ed James (Board Liaison)
  • Andrea McLelland
  • Joe Perry (Staff liaison)