Southeastern Fishes Council

SOUTHEASTERN FISHES COUNCIL

INVESTMENT OBJECTIVES AND GUIDELINES

(Accepted by the membership November 2019)

Introduction

            This statement is adopted by the membership of the Southeastern Fishes Council (SFC) to establish the investment objectives and guidelines to be monitored by the Executive Committee (the “Committee”) and applied by an investment manager selected by the Committee for SFC’s Capital Fund (the “Fund”).

            The purpose of the Fund is to provide long-term financial support to SFC’s commitment to regular meetings, undergraduate and graduate student presentation and travel awards, research awards, and future goals identified by SFC membership.

            Assets may be added to the Fund from yearly surpluses (at the suggestion of the SFC Treasurer or Committee and decided by the membership), gifts, grants, and bequests designated by a donor or the Committee to the Fund. 

Capital Fund Primary Investment Return Objectives

            The primary investment objective of the Fund is moderate growth. This consists of trying to maximize investment returns within appropriate risk constraints, balanced with preserving a portion of the capital for spending from the fund as administered by Committee and SFC Treasurer. Committee will annually assess potential needs over the following five years based on the SFCTreasurer’s report and goals of the Committee and membership as listed in the Introduction. The membership will decide on proposals from the Committee on changes to the investment strategy for returns. Total return shall be computed net of all investment fees and transaction costs.

Capital Fund Portfolio Diversification

            To achieve the investment objective stated above for the Fund, it will be necessary to maintain a high quality, diversified portfolio of highly liquid, mixed-term investment vehicles with minimal to moderate downside risk.

Spending Policy

            Spending from the Fund will be administrated by the Committee and SFC Treasurer after approval by the membership. In no 12-month period may more than 5% of the Fund be accessed. If the Fund reaches a total of $80,000, the Committee should propose increases to the number of or amount of annual awards. This threshold should be evaluated annually to keep it in line with the goals in the introduction and to adjust for inflation.

Operational Guidelines

• General
• In order to improve overall portfolio performance and further reduce risk, the use of an investment manager is recommended. The investment managers shall exercise due care at all times to adequately diversify the portfolio to protect against any loss associated with a single security, issuer, or single event. Assets are to be managed in conformity with the stated investment guidelines. The investment managers shall notify the SFC Treasurer in writing immediately of any deviations from the investment guidelines.
• The investment manager shall be given full discretion to manage the assets under their supervision subject to the investment policy. The Committee is interested in fostering a healthy working relationship with its managers through a discipline of good communication. This outline is intended to provide the Committee with a good foundation from which to understand the specific management styles and strategies, and to effectively evaluate the results. Recommendations for improving SFC’s procedures and goals are always welcome.
• Standards for Managers
• The investment manager will be held to the fiduciary standard and should hold a certification that requires acting as a fiduciary. The investment managers will secure the best executions, and commissions paid should be reasonable in relation to the value of the brokerage paid by the Fund. SFC does require that investment managers competitively bid securities as appropriate and select the most advantageous bid.

Performance Evaluation

            The Committee will annually review investment performance and compliance with this policy statement. Fund results will be compared to indexed fund returns (e.g., Vanguard Index Mutual Funds).

            These Investment Guidelines are hereby adopted by the Executive Committee of the Southeastern Fishes Council on 8 October 2019.

*Largely based on TENNESSEE AQUARIUM INVESTMENT OBJECTIVES AND GUIDELINES (2015).