You can quantify percentages and include items like: You may decide to implement some type of trigger mechanism to alert leadership when a liquidity event occurs or when an issue arises that necessitates identifying other sources of funding. o��$�+|lړ�0 880 0 obj <> endobj in revising their investment policy and incorporate all long-term factors, including ESG considerations. This may directly impact your financing decisions – what it will cost to borrow if your cash flow is not sufficient and how it will affect your return on investments. If you are interested in sending this page to a friend or relative, please enter the following: No personal information (including e-mail addresses) about you or your friend will be collected from this h�b```d``�e`f``�g�c@ >V6�GzT&y�LJT�q���>�^9�=$U�������R-/�쾜��רd_�ſ��;lga`0�Y��"��8�x�3dž`��^Q'T�N�:�����e�5�'�8�H���b萭�,�0���5)�M7s��8d�� �,�1]*a�8�f:d��.L�,p�7S [w���l��1�S�I����^� �:�5&�Y�g+O��ۦ���3K�EL�u��D�1l�y3��lˋ�G���v'h��gWS��F Risk/return trade-offs are important to understand, but they are only part of the equation. section 902 of the Chief Financial Officers Act, the CFO or his/her designees are to manage and implement the Corporate investment program. ��l�zsC֛���ڋ�t%�_D�%f�g�����*�$��5�A��;\DQ(:Y 箮��%�\�J���8�ey8*p���Q��T#0�g���D�׸�-���>�̛�I`w��s�{N,�Ĥ�l��'��n�=�q*��Q���"[��U����MM��̣8I�ߖ��O$Z0 ���)�j�ʏwu�e8��0p�DU�A}�$�*yz�v5W�-Ϫi���f�_�j�?����uPw��uR�����-���O�>�R�(����tK�/��.i'If�s��/U*Ա�Y���0[;�=�̰�qy���wLS�R�;�\��W�h��w6e�ˠb�}%�(����F�` B�� %%EOF Example: “This Investment Policy Statement governs the investments associated with the AFC LLC Pension Trusts.” Specify which of the investor’s assets are to be governed by the IPS. Counterparty risk, also known as default risk, is an important consideration when thinking about asset diversification. Investment Policy Introduction This statement of investment policy was adopted by the Board of Directors of ”Organization Name” on “Date”, to provide for the creation of, and guidelines for the management of, various funds held by the organization. endstream endobj 881 0 obj <>/Metadata 108 0 R/Names 892 0 R/Outlines 208 0 R/Pages 873 0 R/StructTreeRoot 260 0 R/Type/Catalog>> endobj 882 0 obj <>/XObject<>>>/Rotate 0/TrimBox[0.0 0.0 576.0 720.0]/Type/Page>> endobj 883 0 obj <>stream Plans, policies and strategies: You most likely use these terms on a regular basis when you’re talking about corporate investments. h�bbd``b`)��@�4�`j�2�/����� �v qN�����?��������/�@� Ni For example, a money market account placed with a low risk counterparty, such as an established financial institution, typically permits as many as six withdrawals a month, more than one a week.