Strengthening our Communities in the Intermountain West

Investment Policy Statement

Prepared on: August 19, 2009

Investment Policy Statement Approved by the Board of Directors

10.14.09

Hellenic Community Foundation

          P.O. Box 521686

            Salt Lake City, UT 84152-1686

         801-931-939

Investment Policy Objectives

It is the policy of the Hellenic Community Foundation to invest all funds that it raises and manages to:

 

Preserves the principle for HCF perpetual growth Support Hellenic based community programs and projects

Prudently manage, invest and steward the assets entrusted Restrict gifts as directed by the donor

Encourage a legacy of giving

 

 To accomplish the objectives and determine the tolerable risk, the Board of Directors will select a Finance   committee, who will in turn, select a professional Investment Manager. The selection of the Investment Manager will require the approval of the Board of Directors.
 
Investment Criteria
 HCF will invest funds  to maximize the return while minimizing the risk of loss.

 

The Finance Committee and Investment Manager will annually complete a written risk analysis and investment profile.  Included in the criteria for investments, the organization will consider the amount of liquidity needed for future disbursements.
 
The Finance Committee and Investment Manager, with the Board of Directors approval, will assess the overall risk and determine the level of Socially Responsible Investments that the organization will use 
 
Donor Restrictions
All investments will comply with the specific restrictions that any donor may make as to the type of investments their donation may be held in.  The Finance Committee will also review and ensure that use of all funds meet Donor’s requirements.
 
 

Prohibited Investments
The following investments have been determined to be inappropriate and should be noted on the investment profile noted above:
 
1.    None at this time      
 
These prohibited investments will be reviewed annually by the Board of Directors and amended as necessary.
 

Investment Performance
A semi-annual review of the performance of the investments, allocations, restriction use, and risks will be done by the Finance Committee.  Based on this review they will determine if any changes are necessary. Changes may affect the investment criteria, the brokerage company, or investment manager. The review will be presented by the Finance Committee to the Hellenic Community Foundation Board of Directors with recommendations for consideration and final approval.

 

Time Horizon

The investment guidelines are based upon (LEAVE AS IS)greater than three years. The Portfolio’s strategic asset allocation is also based on this long-term perspective. Short-term liquidity requirements are anticipated to be driven by planned expenditures or specific donor requirements. These should consider anticipated cash inflows.

 

Risk Tolerances

Some risk must be assumed in order to achieve the investment objectives of the Portfolio. In establishing the risk tolerances of the IPS, the ability to withstand short and intermediate term variability were considered. A 1-yr loss limit will be calculated and approved annually for the Portfolio.

 

The Portfolio's long time horizon, current financial condition and several other factors suggest collectively some interim fluctuations in market value and rates of return may be tolerated in order to achieve the longer-term objectives.

 

Performance Expectations

The desired investment objective is a long-term rate of return on assets that is low risk with low to moderate return. The target rate of return for the Portfolio has been based upon the assumption that future real returns will approximate the long-term rates of return experienced for each asset class in the IPS. The Finance Committee realizes market performance varies and a rate of return may not be meaningful during some periods. Accordingly, relative performance benchmarks for the investment options are set forth in the "Monitoring" section.

 

 

Duties, Responsibilities and Criteria

 

Finance Committee

As fiduciaries under the Portfolio, the primary responsibilities of the Committee are:

1. Prepare and maintain this investment policy statement.

2. Prudently diversify the Portfolio’s assets to meet an agreed upon risk/return profile.

3. Prudently select investment options.

4. Control and account for all investment, record keeping and administrative expenses associated with the Portfolio.

5. Monitor and supervise all service vendors and investment options.

6. Avoid prohibited transactions and conflicts of interest.

 

Investment Manager 

The Investment Manager serves as an objective, third-party professional retained to assist the Committee in managing the overall investment process. The Manager is responsible for guiding the Committee through a disciplined and rigorous investment process to enable the committee to meet the fiduciary responsibilities outlined above.

The Investment Manger will also perform the duties of the Custodian and is responsible for the safekeeping of the Portfolio's assets. The specific duties and responsibilities of the custodian are:

1. Value the holdings.

2. Collect all income and dividends owed to the Portfolio.

3. Settle all transactions (buy-sell orders).

4. Provide monthly reports that detail transactions, cash flows, securities held and their

 

Investment Policy Review 

The Board of Directors with guidance from the Finance Committee will review this IPS at least annually to determine whether stated investment objectives are still relevant and the continued feasibility of achieving the same. It is not expected that the IPS will change frequently. In particular, short-term changes in the financial markets should not require adjustments to the IPS.

 

Finance Committee                                                  Board of Directors, Chair

 

Basil Chelemes                                                            Douglas K. Anderson

Mike Makris

Tykie Skedros

Dimitrios Tsagaris

501(C)3 Non Profit Organization.