I. Purpose
Cash funds not immediately needed for operations in the current year may be invested over a longer horizon. Intermediate cash that may be invested in this program is defined as the combined college cash balance amount that exceeds the lesser of $10,000,000 or 3% of net assets.
II. Prescribed Types of Investment Securities and Limitations
The following investment grade securities may be used in the Intermediate investment program:
- Obligations of the U. S. Government backed by full faith and credit
- Obligations of agencies backed by the U.S. Government
- Investment grade corporate obligations
- Absolute Return fund of funds selected and recommended by the college’s investment advisory firm, acting as Outsourced Chief Investment Officer
III. General Limitations
- The investments listed in II. A, B, and C will be investment grade vehicles and will have no less than a AA rating. No single investment in this category will exceed $2,000,000.
- Investments in corporate obligations will not exceed 20% of the total investments in II. A, B, and C. No single investment in this category will exceed $2,000,000.
- Total investment in an absolute return strategy will not exceed 15% of the total Cash Management Program.
IV. Investment Review
- The Comptroller will distribute a monthly performance report on the activities of the Intermediate Cash Management Program to the Vice President for Finance and Business Affairs.
- The Comptroller may request the Subcommittee on Investments to add specific investment instruments, with appropriate limitations, to Section II. A. as market characteristics change over time.