Article I: General
- The basic objective of the Investment Policy shall be to:
- Provide safety of funds
- Provide appropriate liquidity
- Promote a responsible return on invested funds
- The Friends of Montana PBS Board of Directors bears the ultimate responsibility for the investment funds. The Board shall approve a five-year campaign budget and be given a portfolio performance summary at least yearly.
- The Finance/Audit Committee shall be responsible for developing the campaign budget, implementing investment policy and monitoring the investment portfolio.
- The Treasurer shall serve as liaison between the Finance/Audit Committee and all brokers/investment advisors and maintain brokerage/financial institution accounts.
Article II: Budget Preparation and Approval
Since the investment portfolio is dependent on determining appropriate liquidity needs, a projected contingency budget will be prepared and modified annually by station management. The projected budget shall provide the Friends with a five-year outlook of possible liquidity needs, including specific projects and contingencies that may require use of Friends reserve funds. From this projected budget, the Friends Finance and Audit Committee will make recommendations annually to the Board regarding changes in invested funds as well as those held in reserve, keeping adequate funds available for station use, while investing remaining funds to realize gains.
Article III: Investment Provisions
- Liquid Funds (Short Term)
- Funds deemed potentially necessary in the five-year budget shall be limited to only liquid securities which have readily available prices and which have sufficient trading volumes so that the securities can be purchased and sold easily without significantly impacting the price of the securities. The volatility of the rates of return should be controlled to preserve capital.
- The total of the funds specified in the five-year budget should use investment vehicles that, first and foremost, preserve capital (i.e. federally insured CD (FDIC), U.S. Government securities, money market funds and insured savings/bank accounts.) The Treasurer may secure these investments ensuring that any one investment adheres to the proper FDIC/SIPC insurance limits. When held in a commercial bank, investment of Friends funds shall not exceed $250,000 in any one institution for federal insurance purposes.
- Invested Funds (Long Term)
- The remainder of the funds in the treasury may be invested in equity securities, annuities or fixed income assets with the express purpose of providing conservative capital growth. All of these investments must be reviewed and approved by the Finance/Audit Committee. The Finance/Audit Committee will review these assets at least annually to determine if investment goals are being met or if modification of portfolio is needed.
Last updated and approved by the Friends of MontanaPBS board on August 15th, 2014