The investment account was created to provide a permanent resource to help sustain the mission of the Montgomery County Road Runners Club (MCRRC). The account will incorporate features that allow flexibility in response to the ever-changing needs of our work. The investment policy will consider not only short-term cash needs and cash flows approved in the annual operating budget, but also longer term needs reflected in the strategic plan. The policy will be administered with the goal of earning a reasonable return on MCRRC’s funds without undue risk. .
The Finance Committee will be responsible for administering this Investment Policy and Guidelines. The Finance Committee will make investment recommendations within the parameters of this Policy and Guidelines as established and reviewed on a periodic basis and will facilitate the initiation of investment transactions. The investment transactions will be governed by Article V of the Bylaws and will require the signature of two officers or board designated individuals.
A diversified portfolio of cash reserves, fixed income, and optionally equity investments (“Portfolio Assets”) will be maintained by ascertaining that:
The Finance Committee will not invest assets in venture capital companies nor in securities of companies which have not been in existence for a sufficient period of time to develop a track record allowing a prudent investor to determine their probable worth. No investments will be made in letter stock, private placements, short positions, margin positions, commodities, oil and gas exploration contracts, or any further speculative investment.
The Finance Committee and the Board recognize that capital markets are dynamic and any statement of guidelines and objectives prepared at any one time may not be totally appropriate, applicable or meaningful at various times in the future. Moreover, the portfolio mix will fluctuate as the markets fluctuate, and therefore, the portfolio mix may fluctuate outside of the guidelines set forth herein on a short-term basis. Whenever a committee member believes that a particular guideline is too liberal or too restrictive, or should be altered or deleted, it is the responsibility of the member to initiate contact with the Board of Directors.
The Finance Committee and Board will not be held accountable for investment fluctuations which may occur.
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Montgomery County Road Runners Club
P.O. Box 1703, Rockville, MD 20849