Archives Partnership Trust Investment Guidelines
| Adopted: | November 19, 1998 |
| Amended: | May 7, 2003 |
| January 31, 2006 | |
| October 11, 2006 | |
| March 28, 2007 |
1. Investments by the Trust will be made in accordance with the provisions of §7(3) of the Archives Partnership Trust Act as amended by Chapter 399 of the laws of 1998 as follows: “Monies in the endowment account and earnings thereon may be invested and reinvested by the Trust Board consistent with the prudent investment standard of Section 11-2.3 of the Estates, Powers and Trust Law and pursuant to the provisions of Section 2925 of the Public Authorities Law. The Trust Board shall give due consideration to balancing the long-term growth of the endowment, long-term trends of the economy and the needs of Trust operations in the State Archives with the goal that the endowment shall provide a permanent, growing and viable source of funds to fulfill the Trust purposes.”
2. Diversification: It is the policy of the Trust, to the extent practicable, to diversify its deposits and investments by investment instrument and by maturity. The cash flow requirements of the endowment and the Special Projects Account will be the primary determining factor in selecting investment securities. Distribution of necessary cash, pursuant to the approved budget, shall not compromise the balance and diversity of the investment portfolio.
3. Authorized Financial Institutions: The Investment Committee shall be responsible for evaluating the creditworthiness and financial position of financial institutions and dealers, for selecting from among those they have determined appropriate for the Trust’s investment purposes, and if applicable, establish appropriate limits on the amount of investments that can be made with each financial institution or dealer. Any or all of following criteria may be used in evaluating and selecting financial institutions and dealers: reputation for quality and reliability, years and amount of experience, prior transactions with the Trust, and ratings given by nationally recognized rating organizations.
4. To implement the statutory standard, the Trust Board shall annually at its budget meeting determine the percentage of the endowment that may safely be withdrawn to balance the operational needs of the trust and ensure the future growth of the endowment. In making such determination, the Trust Board will inform itself of such percentages used by prominent educational and other endowment funds and shall take a multi-year view of the proper percentage. Accordingly, in any one year, withdrawal may exceed the growth in the endowment for that year, or may be less than the annual growth in the endowment reduced by a standard guide of inflation such as the consumer price index.
5. Permitted investments of the Trust endowment shall be as follows:
a. Equities: The equity component may include open end or closed end mutual funds, individual securities, or exchange traded funds. Equities shall be diversified by equity class, by domestic and international positions, and sector (e.g., utilities, industrials, technology, etc.). It is anticipated that equities will be weighted toward larger capitalization companies due to their inherent lower risk. However, it will also be prudent to hold positions in the mid and small capitalization styles.
b. Certificates of Deposit: Certificates of deposit shall be insured by the Federal Deposit Insurance Corporation, the Savings Association Insurance Fund, or the Bank Insurance Fund.
c. Bonds: Corporate, municipal, or state bonds rated A or better by Moody’s and Standard & Poor’s rating services or United States Government bonds. If after purchase a bond’s rating falls, the Investment Committee will discuss whether the bond’s yield, in conjunction with its new rating, warrants retention or should be sold.
d. Money Market Fund: Money market funds meeting the Trust’s investment guidelines.
e .United States or New York securities having the full faith and credit of the United States or the State of New York.
6. Of the permitted investments, the certificates of deposit are collateralized (see Section 5.c. above). The equities, bonds, and money market, while not collateralized, are necessary investments to achieve a balance of growth and security.
7. The following shall not be permitted investments of the Trust endowment: direct ownership of repurchase agreements.
8. The specific investments to be selected shall be selected by the Investment Committee of the Trust Board. The Investment Committee shall meet at least quarterly and it shall maintain written minutes of its deliberations. Copies of its minutes shall be distributed by the Assistant Treasurer within ten business days of any meeting to each member of the Trust Board. The Investment Committee and the Assistant Treasurer shall obtain monthly and quarterly reports of the total value of the endowment and the value of each security or mutual fund contained in the endowment. A copy of the quarterly report shall be sent to each member of the Trust Board within 30 days of the close of the quarter. Any member of the Trust Board shall be sent, upon request to the Assistant Treasurer, a copy of the most recent monthly report available to the Assistant Treasurer.
9. The Trust annual report shall provide an investment report, which shall include the trust investment guidelines, including any amendments thereto, an explanation of the investment guidelines and amendments, the results of an annual independent audit of conformity to the investment guidelines, the investment performance of the endowment, a list of the total fees, if any, for commissions or other charges paid to any investment banker, broker, agent, dealer or advisor rendering investment-associated services to the Trust in the year covered by the report.
10. A copy of the annual report shall be sent to the Governor, the Board of Regents, the President of the University of the State of New York, the Comptroller of the State of New York, the Majority Leader of the Senate, the Speaker of the Assembly, the Minority Leader of the Senate, the Minority Leader of the Assembly and the Chairs of the Senate Finance, the Assembly Ways and Means Committees, the Division of the Budget, and donors of gifts to the Trust.
11.The Trust Board’s responsibility for administration of the investments is delegated to the Board’s Investment Committee, which shall make decisions concerning the investments and report to the Trust Board consistent with these Investment Guidelines.
12. A transaction shall be defined as the initiation of the purchase or sale of a security by the Investment Committee as permitted by these Investment Guidelines. The redemption of an investment upon reaching its maturity or due to being pre-refunded (called) by the issuer, shall not be considered transactions requiring Investment Committee authorization. The Investment Committee, at its December 7, 1998, meeting, adopted by resolution that mutual fund dividends and capital gains be automatically reinvested.
13. All transactions with the endowment custodian shall be either on:
a. resolution adopted by a majority of the Investment Committee,
b. written instructions signed by any two of the following: Chair of the Trust Board, a member of the Investment Committee other than the Chair of the Trust Board and/or the Executive Officer of the Trust, or
c. emailed approval or instructions from any two of the following: Chair of the Trust Board, a member of the Investment Committee other than the Chair of the Trust Board and/or the Executive Officer of the Trust.
14. All checks or electronic transfers from any of the mutual funds or endowment custodian shall be made payable to the “New York State Archives Partnership Trust” and be mailed or electronically transferred to and deposited in the operations account maintained by the State Comptroller or in the special project account maintained by the Archives Partnership Trust as directed by the Executive Officer of the Trust. The Trust shall additionally maintain a money market account for the processing of credit card transactions and shall establish, as needed, money market accounts for Special Project grants, pursuant to Section 16 of these Investment Guidelines, where the grantor requires the tracking and possible repayment of interest earned on the principal of the grant.
15. Gifts to the Trust for endowment purposes, which are received either as a check (including electronic transfers) or in securities, shall be delivered (or transferred) to the endowment custodian with written instructions from the Investment Committee to retain such securities or sell such securities and invest proceeds as part of the endowment. Deposit transactions shall not require signatures, but all checks shall have the Trust endorsement stamp. The Investment Committee shall not direct that such securities be held by the endowment custodian without sale for more than twelve months without the approval of the Trust Board.
16. The endowment custodian shall at all times have insurance in favor of the Trust against malfeasance for at least twenty-five million dollars.
17. Gifts for specific projects shall be handled in one of two ways. If no need for the funds exists for six months, the gift shall be sent to the endowment custodian for deposit in the endowment as the Investment Committee directs. If there is a need for funds within six months, the monies will be deposited directly into the Special Projects Account for the benefit of the Trust or the Comptroller’s Operations as determined by the Executive Officer of the Trust.
18. The Trust Board and Executive Officer shall ensure that special project funds are expended in accordance with donor restrictions.
19. The Legislature recognized that neither the prudent investment standard found at §11-2.3 of the Estates Powers and Trusts Law nor §2925 of the Public Authorities Law is directly applicable to the circumstances of the Trust. Accordingly, the Legislature only required that the Trust manage its endowment consistent with those two sections. In the opinion of the Trust Board, the investment guidelines are consistent with those statutes and the Trust act.
20. These Investment Guidelines shall take effect immediately.
Resolved, that the Trust Board delegates to the Investment Committee the selection of an investment advisor and custodian with the qualifications, reliability, experience, capitalization, and staff to satisfactorily act as investment advisor and endowment custodian of the Trust endowment and to select a money market fund which meets the Trust’s investment guidelines.
Resolved, that the Chair and the Executive Officer of the Trust, or either of them, is hereby authorized to execute the following agreement, or one substantially consistent with it, with the State Comptroller to ensure effective utilization of the operations account maintained with the State Comptroller:
“Memorandum of Understanding dated this day of , 1998 by and between the Comptroller of the State of New York and The New York State Archives Partnership Trust (“Trust”).
The Trust was created by Chapter 758 of the Laws of 1992, as amended. Pursuant to Chapter 399 of the Laws of 1998, the Trust endowment account and project account will be transferred to the custody of the Trust Board on November 22, 1998 while the Trust operations account will remain with the Comptroller.
In order that the Comptroller shall have sufficient moneys available when vouchers and payrolls charging the Trust are presented for payment, there shall be transferred to the Comptroller at the beginning of each quarter (on a fiscal year basis) to the credit of the Trust Operations Account (Comptroller's Fund No. 024, subfund 03) sufficient amounts to fully fund along with State appropriations the projected quarterly disbursements from this account as approved by the Trust Board in its annual budget.
The Trust will maintain its account in good standing. If for any reason quarterly disbursements exceed cash on hand, the Trust will, within no more than 10 days, or at such lesser period as required by the Comptroller, deposit sufficient funds to fully cover expenses
Resolved, that the Chair is hereby authorized to execute such vouchers and other documents necessary to effectuate the transfer of the Trust Endowment to the Trust in accordance with the Trust’s Investment Guidelines.
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