Statement of investment policies and guidelines, November 9, 1994

STATEMENT OF INVESTMENT POLICIES AND GUIDELINES A INTRODUCTION AND PURPOSE The Jewish Federation of Las Vegas established the Investment Committee as a sub-committee of the Finance and Budget Committee in an effort to review and establish investment procedures. The purpose of the Investment Committee is to pursue the best investments given market conditions, thereby maximizing the assets of the Foundation; however, all the operating funds of the Jewish Federation of Las Vegas will continue to be invested in cash or cash eguivalents. B DELEGATION OF RESPONSIBILITIES 1. BOARD OF DIRECTORS It is the responsibility of the Board of Directors to review and approve the policies and guidelines for investments of the Jewish Federation of Las Vegas and the Foundation. The Board hereby gives authorization to the Investment Committee to manage and oversee the Jewish Federation of Las Vegas and the Foundation's investment process. 2. INVESTMENT COMMITTEE The Investment Committee has the responsibility to oversee and recommend investments regarding the assets of the Jewish Federation of Las Vegas and the Foundation. The treasurer of the Jewish Federation automatically serves as a member of the Investment Committee. 3. STAFF The staff of the Investment Committee will include the Executive Director and the Director of Finance and any other individuals deemed appropriate by the Executive Director. The Staff will work with the Investment Committee to see that all matters are effectively carried out and appropriate information is provided to the Committee in order to make accurate decisions. 4. INVESTMENT MANAGERS Local brokers will act as investment managers at the determination of the Investment Committee for the purpose of investing bonds, treasury bill and money markets etc. Money managers will be retained as necessary for the purpose of investment in securities with the guidance of the Investment Committee. C. GENERAL STATEMENT OF INVESTMENT PHILOSOPHY AND PRINCIPLES The Investment Philosophy and Principles of the Jewish Federation of Las Vegas, shall be to maximize the total return i.e. income - appreciation as indicated and mandated by sub-paragraphs of this document. D. SPECIFIC ATTITUDES TOWARDS 1. RISK Risk in investments shall be minimal. Protection should be taken where possible. Stocks and investments should be only in large capital issues. Bonds should be "AAA" rated. Principal value should always be protected. It is realized that growth investments require some risk due to the very nature of their being. These investments are limited as to number and category. 2. TIME HORIZONS Time constraints should only be applied to investments of a growth nature. Since income is little to nil in growth investments, time is paramount. The holding period for non-performing growth investments should be no longer than two years. Debt instruments should be reviewed as to interest rate changes, and anticipated changes, so as not to lose principal value. Holding periods otherwise are unimportant. 3. VOLATILITY Investments should not be made that could cause serious loss in short periods of time. Any investments with volatility should be avoided. 4. LOSS CONTAINMENT: MAXIMUM DECLINE ALLOWABLE Losses should be limited to 20% in equity and 10% in debt investment categories. Since the equity investments will be maintained by the money manager(s) any divergence from the 20% provision can be overridden with proper justification and data back up, provided to the Investment Committee^. 5. PERMISSIBLE AND PROHIBITED INVESTMENTS Proper investments will include money market investments, certificates of deposits, treasury investments, any U. S. Government sponsored and affiliated debt service, corporate bonds, preferred and common stocks, bonds issued and sponsored by the State of Israel, and on mortgages on properties owned by the Federation. The Jewish Federation will not permit its funds to be invested in limited partnerships, futures trading, options trading, penny stock or any tax-free/ tax-deferred investment. (This does not affect contributions to the Federation campaign.) 6. MANAGEMENT STYLES It is important that investment styles be reviewed from time to time to determine if the maximum total return is being attained. If it is viewed that the current management is missing the mark because of the style or philosophy then it becomes mandatory for the Investment Committee to recommend change. 7. USE OF CONSULTANTS Consultants will be used as necessary due to unusual circumstances. All consultants must be bonded and licensed properly. The size of such bond will be at the discretion of the Federation. PERFORMANCE GOALS AND OBJECTIVES 1. EXPECTED PERFORMANCE OF THE PORTFOLIO The Jewish Federation of Las Vegas feels that a performance of at least 4% to be acceptable. Anything lower would indicate action necessary to boost the return. Furthermore, the percentage acceptable should be reviewed by the Investment Committee from time to time to reflect market conditions and circumstance, at least once a year. 2. STANDARDS TO BE USED FOR MEASUREMENT There should always be a way of comparing activity. The Investment Committee should quarterly compare the performance of the portfolio to the changes reflected in the Standard and Poors 500. ASSET ALLOCATIONS 1. The Committee may invest up to 10% in equities and the balance should be invested in cash equivalent investments. This allocation amount will be calculated without regard to any restricted contributions of equities the Board of Directors has accepted. 2. The Committee has determined no more than 4 0% of our investments is to be allocated to any individual broker. 3. No cash funds will be deposited with any bank in an amount in excess of 100% of the FDIC protected amount. Presently that amount is $100,000. DIVERSIFICATION AND MARKETABILITY 1. QUALITY AND GRADE OF INVESTMENTS All investments should be of highest quality with protection taken when ever possible. Protection is given such as FDIC protection up to $100,000 with banks. Some bonds have insured status. Elements of protection should be taken into account to preserve and protect investments. Any investment indicating less than highest quality has to be presented to the Investment Committee for approval before acquisition. 2. LIMITS The Jewish Federation of Las Vegas will have no more than 10% of the portfolio ever placed in one investment other than money market funds.*, certificates of deposit and Treasury Bills. 3. LIQUIDITY REQUIREMENTS Accounting staff and Investment Committee members should work together to determine needed cash flow and proper timing of funds together to determine needed cash flow and proper timing of funds needed for the future. Based on statements by committee members $90,000.00 should always be available in cash or cash equivalent investments. 1. TO THE INVESTMENT COMMITTEE Reports will be provided to the Investment Committee by the Federation staff from brokers and money managers statements on a quarterly basis. 2. TO THE EXECUTIVE COMMITTEE Reports will be provided to the Executive Committee by the Investment Committee on a quarterly basis. H REPORTING REQUIREMENTS I EVALUATION AND REVIEW In order to protect the investments and portfolio, committee members should meet with investment advisors and consultants no less than once a calendar year to review the performance of the investments. J PROCEDURES FOR REVISING THE GUIDELINES The policies and guidelines for the Investment Committee will be reviewed annually by the Investment Committee and revisions will be brought to the Federation Board for approval. 11-09-94