Investment Policy

The funds of USPS are divided into two general categories consisting of operating and reserve funds. The size of the operating fund shall be set annually by the Treasurer so as to sustain the day to day operations USPS. The funds should be readily available to headquarters in the form of checking accounts and short term CD's.

The finance committee shall determine suitable investments for reserve funds of USPS so as to obtain a rate of return consistent with security of the funds. These recommendations shall be given to the Treasurer.

The reserve funds and their management are the direct concern of the finance committee. These funds are further divided into three categories based on the degree of investment safety:

(1) Insured deposits - low risk insured investments such as savings accounts, certificates of deposit and bank money market funds.

(2) U.S. Treasury Notes and U.S. Treasury bonds which are guaranteed by the US Government.

The finance committee should be aware of current trends in interest rates in order to recommend a maximum yield for each type of investment. Trends and predicted trends should be carefully reviewed to determine the best maturity periods of the investments.

(3) Stock or equity investments - These high risk investments are best handled by full time managers who are responsive for the day to day fluctuations in the securities markets. Currently, these investments are in the form of mutual funds which have full time managers. Another approved method of participating in the equity markets is through a managed portfolio. Selected funds should be switch able from one investment type to another without significant fees and by telephone notification. Normally, the Finance Committee Chairperson would advise the headquarters manager or deputy manager to make the switch, but in the case of any emergency, the assistant chair of the finance committee or the Treasurer may advise headquarters to make the switch.

Allocation of assets should have the Finance Committee approval. The allocation of investments may be changed from time to time.

A minimum standard of assets allocation should be:

(1) Insured deposits and fixed income at least 20%

(2) Equity investments not more than 80%