The document discusses establishing an investment policy for West Chester Borough. It recommends seeking council direction to revise current policies based on best practices. This includes creating a formal policy to structure investments according to law, properly collateralize funds, and provide good reporting to council. Future discussions may explore pensions and creating an investment committee.
The BRICS proposals establish two separate institutions, the Contingency Reserve Arrangement (CRA) and the New Development Bank (NDB)
The CRA is a virtual institution whereas the NDB will be an institution that will be established
The NDB will have its headquarters in Shanghai and a regional office in Johannesburg
What is the context of these proposals?
Major gap in development finance to fund long-term infrastructure and sustainable development
The departure by US from expansionary fiscal policy led to large outflows from emerging economies and significant decline in exchange rates
This experience indicated potential vulnerability of emerging economies to shocks emanating from developed countries
Capital raising activity is ever-changing. Asset managers are looking for new ways to raise capital and push the boundaries as greater pressure is placed on traditional models.
The desire to increase hold periods, lower the cost of capital, alter and diversify investment strategies, and provide liquidity for investors has caused managers to reprioritize long-term business objectives. Indeed, permanent capital and other specialty finance structures which were once considered non-conventional in the industry have become a common discussion point for asset managers evaluating the strategy of their next fundraising effort.
It is critical for fund portfolio managers and analysts as well as financial executives of the investee companies to understand when valuation of debt or debt-like securities is required and how the subject debt's economics impact the "synthetic" credit rating, estimation of required yield, and valuation methodologies. In addition, proper identification of features of the debt instrument(s) that may require additional accounting consideration is essential.
The BRICS proposals establish two separate institutions, the Contingency Reserve Arrangement (CRA) and the New Development Bank (NDB)
The CRA is a virtual institution whereas the NDB will be an institution that will be established
The NDB will have its headquarters in Shanghai and a regional office in Johannesburg
What is the context of these proposals?
Major gap in development finance to fund long-term infrastructure and sustainable development
The departure by US from expansionary fiscal policy led to large outflows from emerging economies and significant decline in exchange rates
This experience indicated potential vulnerability of emerging economies to shocks emanating from developed countries
Capital raising activity is ever-changing. Asset managers are looking for new ways to raise capital and push the boundaries as greater pressure is placed on traditional models.
The desire to increase hold periods, lower the cost of capital, alter and diversify investment strategies, and provide liquidity for investors has caused managers to reprioritize long-term business objectives. Indeed, permanent capital and other specialty finance structures which were once considered non-conventional in the industry have become a common discussion point for asset managers evaluating the strategy of their next fundraising effort.
It is critical for fund portfolio managers and analysts as well as financial executives of the investee companies to understand when valuation of debt or debt-like securities is required and how the subject debt's economics impact the "synthetic" credit rating, estimation of required yield, and valuation methodologies. In addition, proper identification of features of the debt instrument(s) that may require additional accounting consideration is essential.
This presentation summarizes the major differences between Nepal Financial Reporting Standards and Nepal Rastra Bank (NRB) directives. The presentation was made on October 2015 to the CEO and Audit Committee members of commercial banks of Nepal in a joint program organized by central bank of Nepal and Institute of Chartered Accountants of Nepal.
Presentation by Maurice Blackburn head of Superannuation John Berrill to the Association of Superannuation Funds of Australia (ASFA) National Conference, Melbourne, 2014.
View John's profile: http://www.mauriceblackburn.com.au/our-people/lawyers/john-berrill/
Our second breakfast club of the year covered the following:
• a brief refresher on the basics of state aid
• practical tips for addressing or eliminating state aid in projects:
o identifying aid
o using De Minimis correctly
o market economy operator principle
o general block exemption regulation.
https://www.brownejacobson.com/sectors-and-services/sectors/public-sector
This presentation outlines the investment policy review process that the government of Lao PDR is undertaking in partnership with the the OECD and ASEAN as part of an active programme of investment policy reforms.
To find out more visit: http://www.oecd.org/daf/inv/investment-policy/lao-pdr-investment-policy.htm
Today’s increasingly complex investment and regulatory landscape places greater pressure on the plan sponsors and fiduciaries overseeing defined contribution plans. Fiduciaries are not only re-examining their current investment decision-making practices, they are also seeking to ensure that those practices allow for enough flexibility in implementation to maximize the likelihood of investment success, while protecting the plan sponsor from potential litigation.
Central to the idea of a well-managed program, a clearly articulated investment policy statement (IPS) serves as the foundation of sound governance and a robust oversight process
This presentation summarizes the major differences between Nepal Financial Reporting Standards and Nepal Rastra Bank (NRB) directives. The presentation was made on October 2015 to the CEO and Audit Committee members of commercial banks of Nepal in a joint program organized by central bank of Nepal and Institute of Chartered Accountants of Nepal.
Presentation by Maurice Blackburn head of Superannuation John Berrill to the Association of Superannuation Funds of Australia (ASFA) National Conference, Melbourne, 2014.
View John's profile: http://www.mauriceblackburn.com.au/our-people/lawyers/john-berrill/
Our second breakfast club of the year covered the following:
• a brief refresher on the basics of state aid
• practical tips for addressing or eliminating state aid in projects:
o identifying aid
o using De Minimis correctly
o market economy operator principle
o general block exemption regulation.
https://www.brownejacobson.com/sectors-and-services/sectors/public-sector
This presentation outlines the investment policy review process that the government of Lao PDR is undertaking in partnership with the the OECD and ASEAN as part of an active programme of investment policy reforms.
To find out more visit: http://www.oecd.org/daf/inv/investment-policy/lao-pdr-investment-policy.htm
Today’s increasingly complex investment and regulatory landscape places greater pressure on the plan sponsors and fiduciaries overseeing defined contribution plans. Fiduciaries are not only re-examining their current investment decision-making practices, they are also seeking to ensure that those practices allow for enough flexibility in implementation to maximize the likelihood of investment success, while protecting the plan sponsor from potential litigation.
Central to the idea of a well-managed program, a clearly articulated investment policy statement (IPS) serves as the foundation of sound governance and a robust oversight process
noorulhadi Lecturer at Govt College of Management Sciences, noorulhadi99@yahoo.com
i have prepared these slides and still using in mylectures, Reference: Portfolio management by S kevin and online sources
Legal Issues In Cross Border Investments, Joint Ventures, Mergers and Acquisi...PreetSethi
This presentation describes what issues are faced by in-house corporate legal counsels and managers in cross-border investments, Joint ventures, mergers and acquisitions.
Financing Capital Investment Planning (Capital Budget) of Local GovernmentRavikant Joshi
PPT presented in Training of Trainers Workshops on Strengthening The Financial Foundation of Local Government Based on Local Government Financial Management Series of UN-HABITAT during June 4- 15 2007 - Nadi, Fiji
This presentation provides start up managers with an overview of the fund formation process and details many of the hedge fund laws and regulations. A full voice-over of this presentation can be found at www.hedgefundlawblog.com.
When it comes to ensuring the future of your nonprofit, an endowment can serve as a vital tool in supporting your organization and its mission. Despite this, many nonprofits – and especially smaller organizations – struggle to build and manage a successful endowment.
This struggle can come from a lack of support by leadership and the board, or just a long-standing – and unproven – belief that endowments only truly benefit organizations with big operating budgets and plenty of resources.
The truth is, any nonprofit, even the smallest organizations, can benefit from an endowment. However, like any good investment, endowments must be properly managed to reach their full potential and maintain consistent growth.
In this presentation, you’ll learn how to:
• Determine the objectives of your endowment
• Set up a payout policy by determining how your endowment will function as a tool to support your organization’s long term plans
• Decide what your investment policy should address
• Strengthen your endowment by utilizing a strong mix of assets by determining optimum asset allocation
• Select the best candidate to manage your endowment through the help of an investment consultant
• Oversee your endowment in the long-term, including the systematic review of risk, monitoring of costs and determining the forum for oversight
How to Structure Venture Capital Term Sheets for a Win-Win Deal ideatoipo
T 4/13/21 How to Structure Venture Capital Term Sheets for a Win-Win Deal
7 PM to 8:30 PM Pacific Time (Online)
https://www.meetup.com/Silicon-Valley-Startup-Idea-to-IPO/events/276787604/
Financial Policy Making for Local GovernmentRavikant Joshi
PPT presented in Strengthening Training of Trainers Workshops on The Financial Foundation of Local Government Based on Local Government Financial Management Series of UN-HABITAT during June 4- 15 2007 - Nadi, Fiji
In this webinar we cover basic principles to address diversity equity and inclusion, developing community wealth, strategies to build collaboration, and building local businesses and economies.
Cornerstone Wealth Management's July 2017 "Investment Insights" newsletter, focusing on the Dept. of Labor's Fiduciary Rule, which should reduce conflicts of interest and protect the interests of all investors.
Running Head Research on problems on public funds investing in Lo.docxtoltonkendal
Running Head: Research on problems on public funds investing in Local government 7
Research on problems on public funds investing in local governments
Shekima Jacob
South University
Introduction
Due to the office of the office of the state’s Treasurer interest on the idea to develop a resource to guide the local government in consideration of the statutory investment plans and strategy for the experienced problems in local government funds ("RCW 39.59.01.", 2017). This article covers all sorts of the investments related to the local government state of law, potential risks investment sound programs elements and the public fund's investment pitfalls. The research goes ahead and provides sources to other resources which are experienced by the investors who have a mind of having best industry implementation minds, therefore the article develops plans as a guide to the investors in the local government of various sections in more significant ways and other investors to be specific.
The prudence of investments
In the process of successful investment there have been the existence of the problem for the investors to have liquidity and safety funds in the first and foremost objective whereby there is the maximization of returns of which tend to operate on the legality bounds. The right thing in this process is the definition of the procedures and strategies on objectives pursuit. The opportunities and investing and risks are supposed to be managed so that there is adequate security because of the fund's availability where the next step must be adding to revenue stream to the individual objectives. The local government managers in investment plans found not to be cooperative to the standard of “prudent person” where the recommendation should be of return and risk in time horizon decisions to be followed by the investor accurately.
The policy of investment
As a requirement of investment strategy is to be anchored by an investment policy that is structured well. In this case, there was a failure in the parameters, objectives, and benchmarks of the portfolio as it was not reviewed frequently. Since the policy is set for the protection of the officers in the entity local government involved and has secured information to the community dealer for much coverage, it was not followed by the suit. The best witnessed for this case is through the local government encouragement by the State Treasurer when the submission of the policies was made thus offering the investment certification system program. Therefore, the major aspect that acted as hindrance to many was financing plans undermined for application.
Finding of eligible investments
Since there is the restriction on the local government to ensure that public assets liquidity, a section of the responsible officers in the ministry reasonable to undertake eligible test to list the investment into the statute list, acted as a hindrance in this process thus making it an inconvenience. ...
2. Takeaway for the evening: Seek council’s direction on revising the
borough’s investment policies and implementing best practices as
defined by GFOA and other communities.
3. Overview
Restrictions on Investments
Current Investment Structure
Research & Best Practices
Next Steps
4. Act 72 of 1971
The law that governs how we can invest
Most commonly used vehicle for financial institutions
Must pledge collateral for deposits exceeding FDIC limits
Collateral pledged on a pooled basis
5. Act 72 Criticism
Collateral valued at face-value, not market-value
Broad list of eligible collateral (may include illiquid assets)
Institutions required to do frequent valuations. Many don’t.
Gov’ts may request reports on status of deposits. Many don’t.
(Monthly requests recommended)
6. Act 72 Criticism Cont’d
3 requirements for a collateral pledge to be valid against FDIC:
• Written agreement
• Approved by board of directors
• Approval reflected in minutes
Approval must be kept continuously as an official record
7. Authorized Investments
Treasury Bills
Short-term Obligations
Savings Accounts & CDs
Treasury Obligations (full faith & credit)
Obligations of the Commonwealth & PA Agencies
Some Investment Company Shares
8. What is our investment structure today?
Susquehanna Bank
TD Bank
PA Local Government Investment Trust (PLGIT)
9. What is our investment structure today?
Susquehanna Bank
• General Fund (Operations, AP, payroll, etc.)
• Sewer Account
TD Bank
• Parking revenue
10. PLGIT
Another general fund
Grants
Donations
Another sewer fund
Capital improvement fund
Escrow accounts
Loans
Highway aid fund
11. With PLGIT, the borough has a lot of stale accounts with balances
that appear to be simply sitting there.
12. The current investment policy was written in 1998. It does not reflect
today’s financial environment. It’s time for an update.
15. “A written investment policy is the single most important element in a public
funds investment program.” – GFOA
16. Best Practices
A written investment policy most important element
Priorities:
17. Best Practices
A written investment policy most important element
Priorities:
Safety
18. Best Practices
A written investment policy most important element
Priorities:
Safety
Liquidity
19. Best Practices
A written investment policy most important element
Priorities:
Safety
Liquidity
Yield
20. “Adherence to an investment policy signals that an entity is well-managed
and is earning interest income suitable to its situation and economic
environment.”
21. When creating an investment policy:
Examine state investment statutes
Examine state collateral statutes
Review sample investment policies
Draft investment policy
Review by appropriate parties
Formal adoption by council
Written investment procedures
Annual review
22. The policy should designate:
Authorized investment officers
Standard of care
Eligible instruments
Diversification
Safekeeping
Maximum investment terms
Internal controls
Members of investment committee
Reporting mechanism & procedures
Benchmarks
Role of investment advisor/brokers
24. A conversation to help identify . . .
A policy to set up a structure for the borough to manage its investments
25. A conversation to help identify . . .
A policy to set up a structure for the borough to manage its investments
from beginning to end
26. A conversation to help identify . . .
A policy to set up a structure for the borough to manage its investments
from beginning to end
according to law
27. A conversation to help identify . . .
A policy to set up a structure for the borough to manage its investments
from beginning to end
according to law
properly collateralized
28. A conversation to help identify . . .
A policy to set up a structure for the borough to manage its investments
from beginning to end
according to law
properly collateralized
with good reporting back to council
29. A conversation to help identify . . .
A policy to set up a structure for the borough to manage its investments
from beginning to end
according to law
properly collateralized
with good reporting back to council
and all investment partners on board.
30. A conversation to help identify . . .
A policy to set up a structure for the borough to manage its investments
from beginning to end
according to law
properly collateralized
with good reporting back to council
and all investment partners on board.
Future conversation: pensions & an investment committee
31. Benchmarks (West Whiteland’s Investment Policy):
“Total COFI and asset class (equity, fixed income and cash) and per
adviser and per mutual fund returns shall be compared to universes
of professionally managed, tax-exempt, balanced, equity, fixed
income and cash-equivalent or “money market” funds as well as to
appropriate index standards.”
32. Pensions (Mt. Lebanon Police Pension Policy)
10-year investment horizon
Chief Objectives:
Provide maximum benefits, defray reasonable expenses for participants
Diversify assets to minimize impact of large losses
Provide for funding, anticipated withdrawals
Conserve and enhance capital of fund
Minimize principle fluctuations over 3-5 year cycles
Achieve a long-term level of return
33. Sample Fund Allocations (West Whiteland)
Single issuer securities do not exceed 5 % of total (except U.S. Treasury)
Individual securities do not exceed 5% of total (except U.S. Treasury)
Corporate bonds no more than 20 % of market value of COFI fixed income
No limit to investing in U.S. Treasury securities
no single issue more than 10 % of investments at market value.
U. S. Agency securities limited to 30% of investments at market value
34. Themes of municipal investment plans
Ethics and Conflicts of Interest
Permitted Investments
Diversification
Performance Benchmarks
Reporting