4.0 Objectives The primary objective of Hagerstown Community College’s investment policy, in order of priority, are safety, liquidity, and return on investments. 4.1 Safety Safety of principal is the foremost objective of this investment program. Investments of the College shall be undertaken in a manner that seeks to preserve the capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not jeopardize the remainder of the portfolio. 4.2 Liquidity The College’s investment portfolio will remain sufficiently liquid in order to meet all operating requirements which might be reasonably expected. 4.3 Return on Investments The College’s investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the College’s investment risk constraints and the cash flow characteristics of the portfolio. Whenever practical, the College will obtain competitive quotes for investments, given the resources available. 5.0 Delegation of Authority Authority to manage the College’s investment program is derived from the Board of Trustees and is in accordance with Article 95, Title 6 of the State Finance and Procurement Article of the Annotated Code of Maryland. Management responsibility for the investment program is delegated to the Vice President of Administration and Finance and the Director of Finance, who shall establish written procedures for the operation of the investment program consistent with this investment policy. Procedures should include a reference to safekeeping, repurchase agreements, wire transfer agreements, banking services contracts and collateral/depository arrangements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. The Vice President of Administration and Finance and the Director of Finance shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials.
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