Endowment Fund Management
Gifts to the Central Arkansas Library System (CALS) that have no investment restrictions are to be deposited in one or more of the CALS Discretionary Accounts. Those accounts are defined as Mutual Funds, Certificates of Deposit, Government Obligations, and the Miscellaneous Discretionary Fund Checking Account.
It is the intent of CALS to manage its discretionary funds to ensure that earnings are maximized within the constraints of acceptable risks. It is also the intent of CALS to invest for the long term, which means that CALS recognizes that short-term market conditions may occasionally result in a decrease in the value of one or more accounts. Investment policies shall be established by a Board-appointed Finance Committee and implemented by the Executive Director.
It is the policy of CALS to invest its gifts in a balanced portfolio which, depending on market conditions, may include Aggressive Growth Funds, Growth Funds, Growth and Income Funds, Balanced Funds, Bond Funds, International Funds, C.D.s, government obligations, and Money Market Funds.
When selecting Mutual Funds, the Finance Committee shall take into consideration the past performance of the funds and shall select funds which are rated three-star or better in the current edition of MORNINGSTAR MUTUAL FUNDS. (Funds that fall below the three-star rating after they are purchased shall be reviewed and kept or sold as conditions warrant.)
Any time funds are sold and/or transferred the Executive Director shall provide the Board Treasurer with a copy of that transaction. Quarterly reports shall be provided to the Board of Directors.
The Board may authorize the Finance Committee to invest Discretionary Funds in real estate. Rents from any properties under CALS control shall be deposited in the CALS Discretionary Accounts. Profits from the sale of any properties purchased with Discretionary Funds shall be deposited in the CALS Discretionary Accounts.