Resolution of the Board of Directors of the Corporation for Public Broadcasting
January 27, 2009
Revised CPB Investment Policy
5 in favor, 3 absent
WHEREAS,
CPB funds should be invested in high quality instruments that have a diversification of issuers, provide sufficient liquidity to meet CPB's projected cash needs, and, within those constraints, maximize return and minimize risk; and
WHEREAS,
CPB management has requested, and the Audit and Finance Committee has recommended, revisions to CPB's investment policy to add money market mutual funds that invest in securities currently authorized by CPB's investment policy on an individual basis to the list of authorized investments.
NOW, THEREFORE, BE IT RESOLVED,
That the Board of Directors of the Corporation for Public Broadcasting hereby authorizes the CPB Chief Financial Officer and Treasurer to invest CPB funds in investment instruments as identified in the attached CPB Investment Policy.
BE IT FURTHER RESOLVED,
That the CPB Chief Financial Officer and Treasurer is authorized to open accounts to deposit CPB funds and to close such accounts, in accordance with this investment policy; and that the authority vested in the Chief Financial Officer and Treasurer by this resolution may be delegated to the Controller.
BE IT FURTHER RESOLVED,
That the Board will review the Corporation's short-term investment policy and performance on an annual basis. DRAFT
CPB INVESTMENT POLICY
January 27, 2009
CPB's Chief Financial Officer and Treasurer is authorized to invest CPB funds in the following:
1. U.S. Treasury Bills.
2. U.S. Treasury Notes maturing within two years.
3. Obligations of U.S. Government Agencies maturing within two years.
4. Bankers acceptances of U.S. banks rated "B" or higher by Bankwatch.
5. Repurchase agreements collateralized by U.S. Government securities or U.S. Government Agency securities.
6. Negotiable certificates of deposit and time deposits of U.S. banks maturing within two years and rated "B" or higher by Bankwatch.
7. Commercial paper of domestic corporations rated both "A1" by Standard and Poors and "P1" by Moody's.
8. U.S. Treasury-backed money market mutual funds Money market mutual funds backed by any of the foregoing securities, within the limits listed below and are regulated by the U.S. Securities and Exchange Commission (SEC) pursuant to Rule 2a-7 under the Investment Company Act of 1940.
Limits of investments of CPB funds in the above investments are as follows:
1. No limit is imposed on purchases of U.S. Treasury Bills, U.S. Treasury Notes or obligations of U.S. Government Agencies.
2. No more than 10% of the portfolio is to be invested in securities issued by any one bank.
3. No more than 10% of the portfolio is to be invested in securities issued in securities issued by any one corporation.
4. No more than 40% of the portfolio is to be invested in commercial paper.
