Section 2.23 - Investment Policy(a) This investment policy is established to provide direction and limits for the Bar's Chief Executive Officer and Chief Financial Officer and for any fee-for-service investment manager that have been engaged in investing financial assets held by the Bar. The investment objectives of the General Fund, Client Security Fund and Diversity and Inclusion Fund are in order of importance: to ensure the safety of the assets, to ensure sufficient liquidity, and to obtain the highest possible rate of return. The investment objectives of the Legal Services Fund are in order of importance: to ensure the safety of the assets, to ensure sufficient liquidity, and to implement a twenty-year total return based spending policy. The policy consists of objectives for the Bar's short-term and long-term investments.(b) The Bar's short-term investments consist of cash and cash equivalents anticipated to be needed and used within the Bar's current fiscal year, generally one year or less. The objective shall be to maximize liquidity and minimize or eliminate risk while achieving a reasonable yield within the range of short-term expectations.(c) The Bar's General Fund, Client Security Fund, and Diversity and Inclusion Fund long-term investments include all reserve balances and designated funds. The objective of these investments is to provide for long-term growth and stability and to achieve reasonable yields while minimizing exposure to risk. The funds are invested to maximize the return on the investment, consistent with an appropriate level of risk and subject to the generation of adequate current income for Bar general operations. The long-term investments shall be diversified to provide reasonable assurance that investment in a single security, a class of securities, or industry will not have an excessive impact on the preservation of capital or returns on investment to the Bar.(d) Unrestricted Bar funds shall be invested with a target to earn a real rate of return (return in excess of the CPI) on an annual basis of four to six percent. The performance results would be to outperform selected broad-based market indices such as the Russell 3000 or S&P 500. Annually no more than three percent (3%) of the unrestricted funds should be used for Bar operations. Management of the fund by the Investment Committee will seek a reasonable balance of rate of return, adequate liquidity, and long-term preservation of capital pursuant to the Bar's Investment Policy.(e) The Bar's Legal Services Fund long-term investments are contained in a designated fund, and do not contain a reserve balance. The objective of these investments is to fund legal aid services in Oregon pursuant to ORS 9.572. These funds are invested based on a twenty-year total return based spending policy, to allow for phased proceeds to legal aid programs. These long-term investments shall be diversified to provide reasonable assurance that investment in a single security, a class of securities, or industry will not have an excessive impact on the preservation of capital or returns on investment to the Bar.(f) The Chief Executive Officer or the Chief Financial Officer is authorized and directed to deposit, sell, convert or withdraw cash on deposit in excess of that required for current operations and to invest those funds in accordance with the Bar's investment policy using expert advice and assistance as the CEO or CFO may require. The Bar may engage one or more fee-for-service investment managers with varying styles and expertise and delegate individual investment decisions to such investment managers within the guidelines of the bar's Investment Policy and the specific direction of the Investment Committee.(g) Investment Committee. An "Investment Committee" consisting of members of the Budget & Finance Committee and the Bar's Chief Financial Officer shall manage and monitor the investment policy and portfolio. The fund performance will be reviewed by the Investment Committee no less than bi-annually. The responsibilities of the Investment Committee are detailed in Subsection 7.404, "Investment Committee Responsibilities." All policy and bylaw changes will be reviewed and approved by the Budget & Finance Committee.(h) The standard of prudence to be used by any fee-for-service investment manager that is engaged by the Bar in managing the overall portfolio will be the Prudent Investor Rule, which states: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived."(i) Members of the Investment Committee are chosen from the Budget and Finance Committee and include the CFO as an advisory member. The Investment Committee Members of the Oregon State Bar are not held accountable for less than desirable outcomes, rather for adherence to procedural prudence, or the process by which decisions are made in respect to the Bar's assets. In consideration of the foregoing, the Committee is responsible for the development, recommendation, implementation and maintenance of all policies relative to the Oregon State Bar's institutional funds and shall: develop and/or propose policy recommendations to the Board with regard to the management of all institutional funds. recommend long-term and short-term investment policies and objectives for our institutional funds, including the study and selection of asset classes, determining asset allocation ranges, and setting performance objectives. determine that institutional funds are prudently and effectively managed with the assistance of management and any necessary investment consultants and/or other outside professionals, if any. monitor and evaluate the performance of all those responsible for the management of institutional funds. choose the investments advisors and allocate the funds amongst them. recommend the retention and/or dismissal of investment consultants and/or other outside professionals. receive and review reports from management, investment consultants and/or other outside professionals, if any. periodically meet with management, investment consultants and/or other outside professionals management, investment consultants and/or other outside professionals. convene regularly to evaluate whether this policy, investment activities, risk management controls and processes continue to be consistent to meeting the goals and objectives set for the management of the Bar's institutional funds. As amended by 11/19/2022.