05.09.050 Investment Management.
(1) Investment Policy Statements.
(A) Tribal funds shall be invested in accordance with approved investment policy statements adopted by the tribal council.
(B) Whenever a separate fund has been established which has significant assets requiring separate investment, the CFO and treasurer shall prepare and recommend to the tribal council an investment policy statement for the fund.
(C) Each investment policy statement shall incorporate all information related to the purpose and intent of the fund as described in chapter 05.04 of this title and in addition shall set forth:
(a) The expected liquidity requirements of the fund.
(b) The anticipated time horizon over which the fund will be invested.
(c) The types of securities in which the assets of the fund may be invested.
(d) The specific risk tolerances of the fund.
(e) The strategic allocation between differing classes of investment instrument in which the fund will normally be invested and allowable variances.
(f) The anticipated yield of the fund expressed in comparison to appropriate indexes.
(g) The nature of account within which the securities of the fund will be held.
(h) Names and responsibilities of all parties to the management of the assets.
(D) Funds shall be invested in accordance with an existing investment policy statement selected as most applicable in the judgment of the treasurer and CFO in the absence of tribal council action.
(a) To the extent that the monetary assets within various tribal funds are to be held for short-term duration while awaiting expenditure, and not required to be segregated, such funds may be commingled within tribal working capital funds.
(b) Tribal working capital funds shall be invested in short term instruments, through such banks and institutions as selected by the tribal council, pursuant to an investment policy statement approved by the tribal council.
(c) To the extent that funds are commingled, earnings on such funds shall be allocated on a pro-rata basis to the fund designated to receive the earnings. If funds are not designated to receive the earnings, then such earnings shall be credited to the general fund.
(2) Investment Performance Evaluation. Formal processes shall be established to evaluate the performance of all funds the treasurer shall oversee the investment of such funds. Such processes shall include, but not be limited to;
(A) Monthly Monitoring.
(a) Report all transactions and earnings for each separate fund for the month and year to date.
(B) Quarterly Monitoring.
(a) Monitor all transactions for propriety and proper recording.
(b) Measure total portfolio performance.
(c) Compare total portfolio return to Investment Policy Statement.
(d) Monitor risk vs. reward ratios for each fund.
(e) Monitor total expenses.
(f) Review adherence to guidelines and disciplines established for the funds.
(C) Annual Monitoring.
(a) Review investment policy statements regarding, fund objectives, return requirements and expectations, time horizon, risk tolerances, liquidity needs and legal changes. Review capital market assumptions and investment constraints.
(b) Review duties of all parties to the investment management process. Update all existing parties and provide special training for new parties. [Res. 22-120, 2022.]