Wes Moore, Governor Aruna Miller, Lt. Governor Samantha J. Biddle, Chair Board Members: Dontae Carroll Maricela Cordova William H. Cox, Jr. Mario J. Gangemi, P.E.
Cynthia D. Penny-Ardinger Jeffrey S. Rosen Samuel D. Snead, MCP MA John F. von Paris
Bruce Gartner, Executive Director
MEMORANDUM
TO:
Finance & Administration Committee
FROM:
Clayton D. Viehweg, Investment Administrator Kevin Cullity, Director of Treasury & Debt Allen W. Garman, Deputy Director Treasury
SUBJECT:
Investment Policy – Annual Review and Proposed Changes
DATE:
August 14, 2025
PURPOSE OF MEMORANDUM Complete required annual review of the Investment Policy and request recommendation of the Finance & Administration Committee to present to the full Board for approval of the proposed changes. SUMMARY Following a recent review by the Investment Committee modest changes to the Investment Policy are currently recommended. The proposed changes are aimed at removing outdated references and aligning the MDTA Investment Policy to that of the State Treasurer’s Office. The proposed changes include: 1. Delete securities issuers listed under Federal Agency Obligations Section V. Allowable Investments. None are active issuers in the market, do not have sufficient liquidity, or even no longer exist. 2. Delete Banker’s Acceptances in Section V. Allowable Investments. This sector of the market has experienced significant declines in outstanding since the peak in the 1980s. References to Banker’s Acceptances have also been deleted under Section VIII. Diversification. 3. Replace the language in Section V. Allowable Investments limiting purchase of securities of specifically listed Supranational issuers to language consistent with what is included in the Investment Policy of the State of Maryland. Reference to a broader set of Supranational issuers is prudent in the face of their high credit ratings and additional diversification benefits. 4. Delete reference to the Operating Reserve Account under Section VI. Maturity Restrictions. This is an Account that no longer exists as it has been consolidated with the General Account.
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