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INVESTMENT POLICYOVERVIEW:Ohio Domestic Violence Network (“ODVN”) has various investment funds which have resulted from the receipt of miscellaneous donations. The primary intended use of these funds is to provide a safety net in order to temporarily maintain continuity of services in the event of a future loss of grant funding until other income sources are secured. Funds may also be used as additional income to balance the operating budget to the extent the Board of Directors determines necessary. PURPOSE OF INVESTMENT POLICY:This policy establishes investment objectives, polices, guidelines and eligible securities related to all assets held by ODVN, primarily for investment purposes. Clarifies the delegation of duties and responsibilities concerning the management of institutional fundsIdentifies the criteria against which the investment performance of the organization’s investments will be measured Confirms policies and procedures relative to the expenditure of institutional fundsServes as a review document to guide the ongoing oversight of the management of the organization’s investmentsDELEGATION OF RESPONSIBILITIES:The Board of Directors has a direct oversight role regarding all decisions that impact ODVN’s funds. The Board may delegate such authority to the members of the Finance Committee to act on the behalf of the Board. Responsibilities of the various bodies and individuals involved in the management of funds are set forth below. Responsibilities of the Board: The Board shall ensure that its fiduciary responsibilities concerning the proper management of ODVN’s investment funds are fulfilled through appropriate investment structure, internal and external management, and portfolio performance consistent with all policies and procedures. Based on the advice and recommendations of the Finance Committee, the Board shall: Select, appoint and remove members of the Committee. Approve investment policies and objectives that reflect the long-term investment-risk orientation of the portfolio.Responsibilities of the Finance Committee: The Finance Committee shall manage the implementation of this policy to include: Develop, recommend, implement and maintain all policies relative to ODVN’s investment funds Define the investment objectives and guidelines as per this PolicyMonitor the performance of the investment to ensure that they are in line with this policyRecommend the retention and/or dismissal of investment consultants and/or other outside professionalsReceive and review reports from management, investment consultants and/or other outside professionalsDetermine which funds shall be placed under the control of a financial advisor or institutionGrant authority to the Executive Director to buy, sell or otherwise change the individual investment in accordance with investment goalsConvene regularly to evaluate whether this policy, investment activities, risk management controls and processes continue to be consistent with the goals and objectives set for the management of the investment fund.Responsibilities of Financial advisor or institution: Financial advisors or institutions will be overseen by the Finance committee. Responsibilities of Financial advisor or institution include:Authority to buy, sell, and change individual investments in accordance with goals set forth and approved by the Executive Director and/or Finance Committee Report regularly to the Executive Director and Finance Committee regarding the performance of all investments. GENERAL PRINCIPLES:The goal is to limit the use of these funds, so that the amount of available funds will grow over time. Because ODVN’s funding is primarily dependent upon grants, some of which could become unavailable without sufficient advance warning, the timing as to when the investment funds may be needed is unpredictable. As such, ODVN policy is to invest these funds in a manner which seeks as high a level of return on investment as is consistent with prudent investment management, the preservation of capital, and maintenance of liquidity.?Lower LimitUpper LimitEquities50%80%Fixed Income (Bonds)15%430%Cash Equivalents5%215%PERMISSIBLE INVESTMENTS:ODVN funds may be invested in the following manner: In any combination of stocks, bonds, mutual funds, ETFs, money market accounts, certificates of deposits, or similar investments. These funds may be invested with or without the services of a financial advisor. Every effort shall be made to avoid unnecessary risk. In no event, shall more than 50% of invested funds mature or be redeemable in excess of one year from the date of purchase, except as otherwise approved by the Board of Directors. DIVERSIFICATION OF INVESTMENTS:In order to achieve a prudent level of portfolio diversification, no more than 20% of the total investments may be invested in any one industry. Additionally, no more than 5% of the fixed income portfolio will be invested in corporate bonds of the same issuer. GUIDELINES FOR FIXED INCOME INVESTMENTS:Bond investments will consist solely of taxable, fixed income securities that have an investment-grade rating (BBB or higher by Standard and Poor’s and Baa or higher by Moody’s) that possess a liquid secondary market. If the average credit quality rating disagrees among the two rating agencies, then the lower of the two will be used as a guideline. No more than 5% of the fixed income portfolio will be invested in corporate bonds of the same issuer. Additionally, not more than 20% of the fixed income portfolio will be invested in bonds of issuers in the same industry.PROHIBITED SECURITIES:Prohibited securities include: private placements, derivatives (other than floating-rate coupon bonds), leveraged investments, margined transactions and foreign denominated bonds.Exceptions to the prohibited investment policy may be made only when assets are invested in a Mutual Fund(s) that periodically utilizes prohibited strategies to mitigate risk and enhance return.PERFORMANCE MEASUREMENT STANDARDS The benchmarks to be used in evaluating the performance of the two main asset classes will be: Equities: S&P 500 Index and MSCI AC World Net USD index- Goal: exceed the average annual return of the index over a full market cycle (3-5 years) Fixed Income: Lehman Brothers Government/Corporate Index and BofAML Global Market index- Goal: exceed the average annual return of the index over a full market cycle (3-5 years). It will be the responsibility of the Finance Committee of the Board of Directors to regularly review the performance of the investment account and investment policy guidelines, and report to the Board of Directors at least annually with updates and recommendations as needed.USE OF INVESTED FUNDS:The Board of Directors, through its approval of the ODVN budget, may approve the use of a specified amount of invested funds for regular operating expenses. Except as approved by the Board of Directors, all invested funds, including principle and income, shall remain invested and shall not be used for current operating expenses. In the event of an emergency, Board authorization to use funds may be obtained by telephone, fax, e-mail, or other electronic means. Approved by the Board of Directors on March 14, 2017 ................
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