Investment Policy adopted November 2019

I. When appropriate, the LWVMD Board may authorize the purchase of income-generating assets. The purpose of these investments is to maximize a flow of income measured in terms of total return, balanced against prudent risks over the long term.

II. By definition, all contributions to the Madeleine Ellicott Founders Fund (see Appendix B) will be invested in long-term income-generating assets. In addition, cash holdings may be temporarily invested in short- or long-term instruments, pursuant to cash flow projections and market conditions.

III. The overall investment philosophy will be moderately aggressive, seeking to increase value and earnings without undue risk of loss. Both equity and fixed income investment will be prudently diversified.

IV. Examples of suitable investments include publicly traded securities, index funds, bonds and certificates of deposit. Funds will not be invested in real estate, real assets such as art or other collectibles, limited partnerships or other illiquid assets.

V. Stock gifts or other assets received by LWVMD as contributions will be sold as soon as prudently feasible and the proceeds invested consistent with this policy.

VI. The LWVMD Investment Committee is responsible for implementing this policy. Members are appointed by the LWVMD Board and include (1) a current LWVMD Board member; (2) two League members (on- or off-Board) serving staggered three-year terms and (3) the LWVMD Treasurer, ex officio. The LWVMD President designates the Committee Chair. The Committee oversees the portfolio, authorizes purchases, sales and distributions, participates in the annual budget process and reports to the LWVMD board semiannually, at the end of the fiscal and calendar years, regarding investment performance. It provides advice to the Board on investment-related matters, such as acceptance of major gifts and establishment or dissolution of restricted funds. In addition, the Investment Committee submits a report for inclusion in the LWVMD Council and Convention Workbooks, and assists the Treasurer with financial reporting related to the investment portfolio.

Go to Appendices