General Overview
The financial philosophy of the Kraemer Library Board of Trustees is to invest funds to conserve principal, to receive a reasonable and growing income and to gain capital appreciation without taking undue risks. The Library Board has oversight for the distribution and use of funds which may be used without restriction in the best interest of the Library as deemed by the Board.
Trust Accounts Subject to This Policy
The Library Board of Trustees has the authority under Section 43.58(7) Wis.Stats. to invest trust funds consisting of gifts and bequests in its Undesignated Trust Fund subject to any conditions or terms of the deed, devise or bequest. This authority does not extend to tax receipts or income from other sources.
This policy accordingly affects only investment of the Undesignated Trust Funds because the other trust funds are invested solely in FDIC insured and collateralized accounts, The Library Board is somewhat more aggressive in its investment policy for the Undesignated Fund.
Investment Monitoring and Control
The Board of Trustees has the responsibility to assure that investments are being managed properly. The Board delegates to the Treasurer the responsibility of meeting at least twice a year with the investment managers to review the performance of all investments and to report back to the Board with its findings.
It is the policy of the Library Board of Trustees, that the Treasurer oversees the proper implementation of the investment objectives and guidelines. The Board delegates investment management to the Treasurer pursuant to §43.58(7)(b)(2), Wis. Stats, with the understanding that all investment decisions are to conform to the guidelines of suitable investments incorporated in this investment policy statement and consistent with §§66.0603(1m) and 112.11(3), Wis. Stats. The Library Board President and Treasurer will serve as signatories on all disbursements.
Investment Guidelines
Management.
In managing and investing an institutional fund, the following factors, if relevant, shall be considered:
a. General economic conditions.
b. The possible effect of inflation or deflation.
c. The expected tax consequences, if any, of investment decisions or strategies.
d. The role that each investment or course of action plays within the overall investment portfolio of the fund.
e. The expected total return from income and the appreciation of investments.
f. Other resources of the institution.
g. The needs of the institution and the fund to make distributions and to preserve capital.
h. An asset's special relationship or special value, if any, to the charitable purposes of the institution.
Risk. The Board of Trustees recognizes that every investment contains risk. The investment managers will manage the portfolio in such a way as to balance risk while still maintaining the primary objectives and targets of the fund in each of the categories.
Diversification. The portfolio will be structured in such a way as to minimize the risk of a large loss in any one security, industry, or sector. While managing the targets and objectives within each of the categories of funds previously mentioned, the investment managers should attempt to maintain the following mix of asset goals for the Library:
Asset Class Minimum Weight Maximum Weight
Equities 0% 60%
Bonds 15% 70%
Cash Equivalents 15% 85%
Restricted Asset Categories. The selection of specific investment vehicles (stocks, bonds, other marketable securities) should be made with consideration to assuring that no conflicts exist between these vehicles and the mission and goals of the Kraemer Library. Investments shall be restricted to those options set forth in §66.0603(1m), Stats. The Library Board investment managers shall not engage in margin buying or short selling. There shall be no option or commodities trading. There shall be no real estate or private investments. There shall be no more that 5% of total shares outstanding for any one company.
Periodic Review
This statement of investment objectives and guidelines will be reviewed periodically by the Board of Trustees.
Adopted by the Kraemer Library & Community Center Trustees: October 27, 2014