 | Board of Visitors minutes January 26, 1990 |  |
APPROVAL OF PROPOSED CHANGE IN CURRENT FUNDS GUIDELINES TO
INCLUDE INVESTMENTS IN INTERNAL LOANS SUBJECT TO APPROVAL
BY THE VICE PRESIDENT FOR BUSINESS AND FINANCE
- The following resolution was adopted:
- RESOLVED that effective January 26, 1990, the Current Funds Guidelines be amended to include investments in internal loans to University departments and activities subject to approval by the Vice President for Business and Finance.
INVESTMENT GUIDELINES FOR THE
UNIVERSITY OF VIRGINIA
CURRENT FUNDS PORTFOLIO
Earnings from Current Funds investments provide an important source of unrestricted revenue for the University. Funding for this program includes cash balances in the loan, endowment, plant and University restricted and unrestricted current funds beyond those required to meet the daily cash needs of the University.
Investment Objectives
The primary investment objective of the fund is to maximize investment income consistent with the need for safety of principal and liquidity. A secondary objective is to realize incremental income or principal appreciation, consistent with the primary objective, through active management of the portfolio. A target yield for the portfolio is to generate a return in excess of the 91 day U.S. Treasury Bill rate.
Investment Philosophy
Portfolio management and trading will be used to achieve the objectives. Strict quality standards have been established to minimize credit risk. In order to protect against or capitalize on sharp fluctuations in interest rates, trading may be substantial at times. Although there are no maturity restrictions, emphasis will be placed on short term, highly marketable securities to insure adequate liquidity.
Investment Policies
- 1. No maturity restrictions.
- 2. The funds may be invested in the following instruments:
- a. Savings accounts approved for Commonwealth of Virginia deposits.
- b. Repurchase agreements, collateralized by government securities, for any bank approved for Certificates of Deposit.
- c. Certificates of Deposit and Banker's Acceptances
issued by any of the following Virginia banks:
- Sovran Bank, N.A.
- Jefferson National Bank
- Crestar Bank
- Central Fidelity Bank
- Signet Bank
- Dominion Bank, N.A.
or any banks rated A, A/B, or B by Keefe, Bruyette & Woods Bank Watch Bank/Thrift Ratings. No more than 10% of the funds held in cash equivalents shall be invested in CD's issued by any single bank. No more than 10% of the funds held in cash equivalents shall be invested in the Banker's Acceptances of any single bank.3826 - d. Commercial paper issued by domestic corporations having a credit rating in either of the two highest grades (A1-P1, A2-P2), by Moody's and S&P. No more than 10% of the funds held in cash equivalents shall be invested in the commercial paper of any single issuer.
- e. U.S. Treasury Notes and Bonds
- f. Obligations of any agency or instrumentality of
the United States to include:
- 1. Federal Home Loan Bank
- 2. Federal Farm Credit Bank
- 3. Federal National Mortgage Corporation
- 4. Government National Mortgage Association
- 5. Federal Home Loan Mortgage Association
- 6. Student Loan Marketing Association
- g. Corporate notes and bonds rated A or better by S&P or Moody's
- h. Short-term money market funds limited to:
- Boston Safe Deposit and Trust Company - Reserve Deposit Account
- Common Fund for Short Term Investments
- Dreyfus Liquid Assets
- Dreyfus Institutional Money Market Fund, Inc.
- Scudder Managed Reserves
- Cash Reserve Management (E.F. Hutton)
- Institutional Liquid Assets (Goldman Sachs)
- Trust for Short Term U.S. Government Securities (Federated)
- Fiduciary Trust Company Money Market Fund
- i. Common Fund for Bond Investments
- j. Common Fund Intermediate Cash Fund
- k. Certificates of deposit, fully collateralized by government securities, with Savings and Loan institutions in the Commonwealth of Virginia.
- l. Subject to the approval of the Vice President for Business and Finance, internal loans to University Departments and Activities to be repaid from operating and capital funds budgeted for this purpose. No more than a total of $10 million shall be invested in internal loans at any one time.
Custody
All securities will remain in the custody of the University of Virginia or its custodian bank except for Certificates of Deposit and Banker's Acceptances purchased from any of the banks noted in 1(c) under Investment Policies. At the option of the Office of the Treasurer these securities may remain in the custody of the bank where the security was purchased.
REPORT ON CONSTRUCTION
The President reported that the University Division has construction projects valued at $113 million, and that 30% are from general funds. The Hospital Division has projects valued at 224 million dollars, with 10% from general funds. The Clinch Valley College Division has projects valued at $5.5 million, all from general funds.
ACCEPTANCE OF GIFTS, GRANTS AND CONTRACTS
The Board voted to accept $19,503,089 in gifts for the fiscal year 1989-90. The President reported that the largest gifts went to the School of Medicine and that the College of Arts and Sciences ranked second in terms of gifts.
| Board of Visitors minutes January 26, 1990 | |