Investment Policy

FITZWILLIAM TOWN LIBRARY
INVESTMENT POLICY

GENERAL
The Board of Trustees has determined that the investments of the Fitzwilliam Town Library will be managed in accordance with the Prudent Investor Rule, defined in RSA 564-B:9-901 - RSA 564-B:9-906. The investment guidelines that follow provide direction as to our risk tolerance and general preferences.

Currently the Trustees oversee five different accounts.

The four accounts listed below are held in cash or invested in bank deposits, money market funds or similarly liquid, interest bearing investments or accounts.
Building Fund, Office Equipment Fund,
Special Book Fund Elizabeth Massin Fund.
The Building Fund shall be drawn down by $500 each year, until depleted.
The Office Equipment Fund shall be drawn down $500 each year, until depleted.
The Special Book Fund shall be drawn down by $500 each year, until depleted.
The Elizabeth Massin Fund shall be drawn down $500 a year as requested by the donor, until depleted.

The fifth account is the Memorial Fund. This account is managed by Steward Partners Global Advisory, as described under RSA 31:38-a, III. The goal is moderate growth and income.
When the 4 funds listed above reach a $500 contribution or less, the Memorial Fund shall be drawn down by 1% of its value not to exceed a 3-year moving value of the fund itself.

ASSET ALLOCATION
The current asset allocation guideline is as follows:
Cash and cash equivalents: 0 - 5%
Fixed Income: 40 - 60%
Equities: 40 - 60%

FIXED INCOME
Most fixed income security purchases shall have a minimum quality rating of triple “B” by either Mergent Bond Record or Standard and Poor’s Corporation. However, there will be a tolerance for high yield debt not to exceed 10% of the total portfolio. Concentrations in any one issuer shall not exceed 12% except in obligations of the United States and/or of the State of New Hampshire and its subdivisions.

COMMON STOCKS
The equity portion of the portfolio must be broadly diversified. In order to achieve diversification within the Memorial Fund’s modest capital, mutual funds should be used. These funds should be selected for their proven record of earnings’ growth, strong fundamentals, and consistent management. The majority of the equity position should be in large capitalization companies with only a small percentage devoted to mid cap and small cap. The maximum exposure to any one fund should not exceed 15%.

PERFORMANCE MANAGEMENT
Performance results and this investment policy statement will be reviewed by the Trustees at least annually as required by the laws of the State of New Hampshire.

Amended and adopted May 1, 2017 next review May 2018

J. Nicholas Noyes, Chair

Barbara Green, Investment Treasurer,

Dick Goettle, Treasurer