The Trinidad State Educational Foundation
Sharing the Vision, Securing the Future.
Investment Policy
The Board of Directors of the Trinidad State Junior College Educational Foundation created a Restricted Endowment Fund on January 31, 1989. To define the program and to establish an Investment Committee to assist in the placement of investment funds to meet Foundation needs and responsibilities. It further provides guidelines for the management of assets in the Endowment Fund to assist the Board of Directors in effectively supervising and monitoring its investment activities.
The Board of Directors empowers the Investment Committee to invest, manage, direct and monitor funds received for the benefit of the Foundation following the “Prudent Rule Expert Role” which requires that investment activity will be performed with care, skill, prudence and diligence, under circumstances then prevailing and that a prudent person, acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of like character and like aims.
The Investment Committee will meet no less than semi-annually and will report to the Board of Directors who will maintain ultimate control and responsibility for all investment activities.
The Investment Committee will consist of not more than seven (7) individuals, the President, the Director of Development and the Chief Financial Officer of Trinidad State Junior College and not more than four (4) individuals specifically designated by the Foundation Board of Directors who have a creditable and substantial level of financial experience.
The Investment Committee will:
- Establish policies and guidelines for investing the Foundation financial assets.
- Determine appropriate asset allocation among resources.
- Establish a system of monitoring and reviewing performance of investment.
- Select Investment Manager(s) determined by the Committee.
- Report to the Foundation Board of Directors.
The corpus of the Endowment will consist of financial resources invested on a pooled basis consistent with donor intent and/or purpose. A corpus donation will not be maintained on an individual donor basis but will be maintained on a pro-rata basis of the original donation to the total corpus value of the endowment.
INVESTMENT POLICY
The Trinidad State Junior College Educational Foundation Investment Committee will manage the corpus of the Endowment Fund maintaining in their deliberations that the prime responsibility of the Committee is the preservation of the corpus. Second to the prime responsibility is the maximization of the corpus value and return on investment. At no time will the corpus, defined as that amount originally gifted to the Foundation Endowment by a donor excluding any interest, dividend or appreciation of the originally gifted amount be spent and/or committed to other purposes.
Decisions relative to the investment of the corpus need to be reviewed in terms of both short and long term investment strategies, donor financial participation, security, return on investment, cost, risk, liquidity and the overriding investment Policy stated above.
Investments will be selected by the Investment Committee, recognizing current economic conditions as evaluated by the Committee and any investment consultants utilized by the Committee, always maintaining in their deliberations the prime responsibility of Corpus Preservation and the secondary responsibility of maximization of corpus value and investment return.
Depository and cash investment accounts will be in financial institutions insured by FDIC Insurance and placed in firms with secure financial history for the past five (5) years.
Highly rated federal, state and /or local governmental and corporate bonds may be purchased on an individual and/or pooled basis.
Individual and/or pooled select income/growth oriented equities may be purchased, however speculative stock, or stock oriented programs not consistent with this investment policy may not be acquired.
Other speculative investment opportunities and/or real estate investment will not occur in the Endowment Fund.
Investment activities will strive to provide a balance of income availability and growth potential to provide for a consistent, short and long term, reliable and stable funding source for Trinidad State Junior College and its activities.
This Investment Policy may be altered or amended at any time by the Investment Committee, subject to final approval of the Foundation Board of Directors.
