Investments

 

Unanimously

RESOLVED,
The Board of Directors adopts the attached CPB Investment Policy.


CPB Investment Policy

Investments permitted per 1995, 2008, 2009 and 2016 Board resolutions are as follows:

  1. U.S. Treasury Bills.
  2. U.S. Treasury Notes maturing within three years from the date of purchase.
  3. Obligations of U.S. Government Agencies maturing within three years from the date of purchase.
  4. Bankers acceptances of U.S. banks rated “B” or higher by Fitch.
  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 Fitch.
  7. Commercial paper of domestic corporations rated both “A1” by Standard and Poor’s and “P1” by Moody’s.
  8. Corporate bonds of domestic corporations whose short-term and long-term ratings are at least A1 and A, respectively, by Standard and Poor’s, and P1 and A2, respectively, by Moody’s, and that mature within three years from the date of purchase.
  9. Money market funds or 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 applied to the investment of CPB funds:

  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 the greater of 10% or $25 million of the portfolio is to be invested in securities issued by any one bank.
  3. No more than the greater of 10% or $25 million of the portfolio is to be invested in securities issued by any one corporation.
  4. No more than 50% of the portfolio is to be invested in commercial paper and/or corporate debt.
Resolution Date: 
Thursday, February 4, 2016
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.

Resolution Date: 
Tuesday, January 27, 2009
Five in favor, two absent

WHEREAS,

CPB funds should be invested in high quality instruments that have a diversification of issuers, and that also provide sufficient liquidity to meet CPB's projected cash needs, and within those constraints, should maximize return; and

WHEREAS,

CPB management has requested and the Audit and Finance Committee recommended revisions to CPB's short-term investment policy to take into account an additional, currently available, short-term investment instrument, specifically, money market mutual funds backed by U.S. Government and Agency securities.

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 money market mutual funds backed by U.S. Government and Agency securities as indicated and at the limits listed in the revised CPB Investment Policy attached.

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 or in their absence, to the Accounting Manager.

BE IT FURTHER RESOLVED,

That the Board will review the Corporation's short-term investment policy on an annual basis.

Resolution Date: 
Tuesday, May 20, 2008
Unanimously

WHEREAS,

CPB Management has recommended revisions to CPB's short-term investment policy to take into account additional currently available short-term investment instruments; and

WHEREAS,

CPB's funds should be invested in high quality instruments that have a diversification of issuers, and that also provide sufficient liquidity to meet CPB's projected cash needs, and within those constraints, should maximize return.

NOW, THEREFORE, BE IT RESOLVED,

That the CPB Treasurer is authorized to invest CPB's funds in the financial instruments and at the limits listed in Management's memorandum of January 11, 1995.

BE IT FURTHER RESOLVED,

That the authority vested in the CPB Treasurer by this resolution may be delegated to the Director of Budget and Finance, or, in his absence, to the Finance Manager; and that the Treasurer is authorized to open accounts to deposit CPB funds and to close such accounts, in accordance with this investment policy.

BE IT FURTHER RESOLVED,

That the Board will review the Corporation's short-term investment policy on an annual basis.

Resolution Date: 
Tuesday, September 17, 1996
Unanimously

WHEREAS,

the Board requested that Management analyze CPB's current short-term investment management services to determine if CPB was getting the best return and best services available, given CPB's investment policies; and

WHEREAS,

after having reviewed the current investment services, issuing a request for competitive proposals to provide these services and analyzing the responses, Management has reported to the CPB Board Audit Committee that it sees no reason to change its policies or the institution currently handling CPB's investment services.

NOW, THEREFORE, BE IT RESOLVED THAT:

the Board endorses Management's conclusion to retain the Bank of America as the institution providing short-term investment management services. The Board encourages Management to periodically review the provision of these investment services to assure itself that CPB is receiving the best return and services possible consistent with its investment policies and report its finding to the Board.

Resolution Date: 
Tuesday, July 18, 1989