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Investments Policy 301.2

1. Investment Policy

The chief financial officer of each campus, division, or unit must develop an investment policy that addresses:

  • Authority for investment transactions
  • Investment objectives
  • Strategy and guidelines

The policy should attempt to optimize returns within appropriate risk parameters. Each campus, division, or unit must ensure that operating funds remain sufficiently liquid to meet current obligations that may be reasonably anticipated.

The policy shall be forwarded to the Vice President for Finance for review by the Investment Advisory Committee. The chief financial officer of each campus, division, or unit is responsible for submitting updates to the policy as changes occur.

2. Investment Advisory Committee

A system-wide advisory committee will be established by the Vice President for Finance in accordance with Board Policy 470.2. The committee will:

  1. Review administration of campus-held endowment funds
  2. Review the performance of the external investment pool and the investment agreement between the University of Arkansas Foundation and the University of Arkansas System on a yearly basis
  3. Evaluate campus investment policies to ensure they identify investment objectives, strategy, and guidelines

3. Investment of Bond Proceeds and Sinking Funds

It is the responsibility of the bond trustee, in accordance with the bond indenture, to invest all bond proceeds and sinking funds.

4. Engaging Outside Consultants

A campus, division, or unit may engage a firm to advise on matters pertaining to the investment management of operating funds. This may include:

  • Analyzing current operating fund portfolios and preparing optimization recommendations
  • Reviewing and evaluating investment management performance
  • Evaluating money market and cash investment accounts for:
    • Policy compliance
    • Quality and diversification
    • Management experience and risk controls
    • Competitive yield relative to expense ratios and service capabilities

The operating investment policy shall serve as the guiding document for all proposed investment strategies.

Policy Effective: July 25, 2016