CQ. Investment Management (BP)

POLICY

The Board shall adopt a specific investment policy and strategy guidelines for South Plains College.  The Investment Policy will be designed to achieve the goals of safety, liquidity, and yield in all the College’s investment activities. The Investment Policy shall incorporate the statutory provisions of the Public Funds Investment Act, Article 342A-2V.T.C.S., as amended in Chapter 2256 by the Texas Legislature (HB2459, 73rd Legislature).

SCOPE

The Investment Policy shall apply to all financial assets and funds in use by the college as well as any future funds created by the college unless specifically exempted by the Board of Regents and/or its adopted policy. These types of funds include, but are not limited to:

1. General Fund
2. Special Reserve Funds
3. Debt Service Funds
4. Capital Projects Funds
5. Auxiliary Activities Funds

OVERALL OBJECTIVES AND PRIORITIES

The objectives and priorities of the Investment Policy of South Plains College, in order of importance, are as follows:

1. To comply with the provisions of the Public Funds Investment Act.
2. To provide for the safety of principal of all SPC funds.
3. To insure that adequate cash is available to meet operating requirements.
4. To earn the highest possible rates on return on investments consistent with the foregoing objectives and guidelines.
5. To allow for diversification in the types, issues, and maturities of investments so as to avoid incurring unreasonable and avoidable risks.
6. To maintain the highest professional and ethical standards as custodians of the public trust.

ACTIVE PORTFOLIO MANAGEMENT

South Plains College shall a pursue an active versus passive portfolio management philosophy. That is securities may be sold before they mature if market conditions present an opportunity for the College to benefit from the trade. The investment officer of the College will routinely monitor the contents of the portfolio, the available markets, and the relative value of competing instruments, and will adjust the portfolio accordingly.

RESPONSIBILITY AND CONTROL

The President of South Plains College or, at the President's discretion, the Vice President for Finance and Administration will be designated as the Investment Officer for the College. The Investment Officer shall operate the investment program in a manner consistent with the College Investment Policy. The Investment Officer shall attend at least one investment training session relating to the Officer's responsibility under the Public Funds Investment Act within twelve months of after assuming duties.