The purpose of this policy is to provide efficient, ethical and consistent guidelines for the investment of Delta State University’s cash reserves. Cash reserves are defined as funds in the University’s accounts not required at that point in time to maintain adequate bank balances or to repay outstanding financial obligations.
- Principal – The prime objective of the investment program is to preserve principal.
- Liquidity – Adequate liquidity should be maintained to meet projected and unexpected cash needs. Adequate liquidity requires that an investment instrument can be sold on the secondary market without substantial loss of principal.
- Return – All reasonable efforts should be made to realize the highest return per investment dollar while minimizing risk and retaining liquidity.
- Risk – All risks, including custodial credit risk, interest rate risk, credit risk, concentration risk, and foreign currency risk should be taken into account in the investment of cash reserves.
Only those investments permissible under State of Mississippi law in Section 27-105-33 (1972) are allowable.
- Safekeeping – Whenever possible, investment securities purchased by Delta State will be “Book Entry” transactions and held in a custodian or safekeeping account in a state approved depository to protect against delivery failures and serve to concentrate investments in one location. No due bills will be accepted under any circumstances.
- Investment Manager – All cash will be invested in either the university’s bank depository or with the IHL selected investment manager, Trinity Capital Investors.
Income earned from investments made under this policy will be distributed on an annual basis to specific funds within the University based on the average daily claim to cash for each of these funds as a percentage of the total average claims to cash for the same period.
Delegation of Authority
The ultimate responsibility for the monitoring and supervision of the investment manager lies with the President of the University and designee, the Vice President for Finance and Administration. The Vice President for Finance and Administration and the Comptroller shall meet quarterly with the Investment Manager to set and review asset allocation guidelines, review performance, and set investment return goals for budgetary purposes.
Responsible Office and/or the Policy Owner: Finance and Administration
- IHL Investment Management Agreement, October 22, 1999
- Amendment to IHL Investment Management Agreement, November 6, 2002
- IHL Investment Policy 701.08
Policy Effective Date: January 9, 2012
Approval Date: January 9, 2012