Download Investment Policy Beaufort County Open Land Trust (BCOLT

Investment Policy
Beaufort County Open Land Trust (BCOLT) believes strongly in the importance of establishing
financial policies and practices that will allow Beaufort County Open Land Trust to achieve its
mission in an effective manner and provide a basis from which to continue broad community
support and trust in Beaufort County Open Land Trust’s conservation programs, and allow the
organization to ensure there are sufficient resources to administer the organization’s
responsibilities in a professional, timely and responsive manner.
To that end, BCOLT has created the “Policy for Managing Dedicated & Restricted
Funds,” which describes the purpose, sources of contributions, and spending policies for
these Internal Funds:
Operating Fund
CE Stewardship Fund & CE Legal Defense Fund
Endowment Fund
Acquisition Fund
These Funds shall be used and invested according to the purpose for which each was
created. It is the policy of the Land Trust to exercise prudent management of its
financial assets through the investment of its funds according to the parameters set out
in this policy. This policy applies to all of the Land Trust’s assets, with different
investment objectives and parameters established for each internal fund based upon the
purpose and use of that fund.
The investment objectives for each fund shall address the following parameters:
1. Preservation of purchasing power (the need to protect against
inflation)
2. Investment time horizon (time line for investments taking into
account the need to access funds)
3. Asset Allocation (balancing the need for access, income, growth and
security)
4. Appropriate investment instruments (taking into account the other
investment objectives)
Investment Parameters for the Land Trust Funds
Fund
Preservation of
Purchasing
Power
N/A
Investment
Horizon
Asset
Allocation
1-3 years
CE
Stewardship &
Legal Defense
Endowment
Yes
1-10 years
Cash or interest
bearing
Up to 40%
equity
Yes
10 years or
more
Up to 60 %
equity
Acquisition
Yes
1 – 10 years
Up to 40%
equity
Operating
Investment Policy – MDB 7/18/12
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Additional Investment Guidelines
All Land Trust funds will be invested in accordance with the Prudent Investors Act. Funds
should be well diversified across all asset classes in order to minimize risk exposure. All
investments and allocations of funds into specific investments shall be reviewed by the
Board of Directors at least annually.
Handling of Donated Stocks
When common stocks are donated to the Land Trust, such stocks will be sold at the time
of receipt.
Prohibited Transactions
The following are prohibited under this investment policy:
 Short Sales
 Put and Call Option Strategies
 Margin Purchases
 Commodities (i.e., futures, ETFs)
 Warrants
 Hedge Funds
 Direct investment in tangible assets such as real estate, oil and gas wells or
leases, precious metals or indirect investments in such activities through
investment vehicles such as limited partnerships (e.g., private equity).
Management of Funds and Periodic Review:
Authority
The Finance Committee of the Board is authorized to select the specific institutions and
vehicles in which the Operating Funds, Stewardship and Legal Defense Fund,
Endowment Fund, and Acquisition Fund will be invested.
The Finance Committee may select a securities broker or a professional advisor in
investment and fund management to manage investments for the Operations Fund, the
CE Stewardship Fund and CE Legal Defense Fund, the Endowment Fund, and the
Acquisition Fund
The Finance Committee may, from time to time, need to make adjustments to the
management of the organization’s investments to ensure that the organization’s goals, as
outlined in this policy, are achieved. Decisions about these investments, rebalancing,
and the authority to open and close accounts rests with the Treasurer and the Finance
Committee.
Changing economic conditions, evolving land trust practices, or changing best
management practices for financial resources may require amendments or changes to
this policy. This Investment Policy shall be reviewed every year by the Finance
Committee and every three years by the Board of Directors.
Monitoring of Objectives and Results
Investment Policy – MDB 7/18/12
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All investment objectives and policies set forth in this Investment Policy Statement are in
effect until changes are recommended by the Finance Committee and approved by the
Board of Directors. The Finance Committee shall review this Investment Policy
periodically to determine that the investment strategy of the Funds in agreement with
this Investment Policy and that the objectives and policies set forth in this Investment
Policy continue to be appropriate.
The individually managed portfolios shall be monitored for return relative to objectives,
for consistency of investment philosophy, and for investment risk (as measured by asset
concentration, exposure to extreme economic conditions and market volatility).
Individually managed portfolios shall be monitored and reviewed by the Finance
Committee periodically, but not less frequently than every six months, and such results
shall be evaluated by the board annually, at a minimum. Financial advisors will be
required to inform the Finance Committee of any significant change (including
anticipated changes) in investment philosophy, firm ownership, portfolio managers,
organizational structure, professional personnel, assets under management, or account
structure.
Each investment manager will submit a quarterly report to the Finance Committee
containing the following information: total return (on a time-weighted basis) net of all
commissions and fees, additions and withdrawals from the account, current holdings at
cost and market value, and purchases and sales for the quarter. The Finance Committee
shall share this information with the Board annually, at a minimum.
Conflict of Interest
Those involved in making investment decisions for the Land Trust shall refrain from any activity
that could conflict with the proper implementation of the investment program or which could
impair their ability to make impartial investment decisions. They shall disclose to the Executive
Director and the Board of Directors any material financial interests in financial institutions that
conduct business with the Land Trust.
In order to avoid possible conflicts of interest, the Land Trust will not retain any investment
manager or provider of investment-related services if, at any time during the engagement of any
such investment manager or provider, that investment manager or provider is a person who is
then serving as a member of either the Committee or as a member of the Board of Trustees.
Internal Controls
The Board of Directors will approve a system of internal controls designed to prevent any loss of
funds arising from fraud, employee error, misrepresentation by third parties, or imprudent action
by employees or officers of the Land Trust.
Adopted by the Board of Directors: _____________
Investment Policy – MDB 7/18/12
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