Investment Policy

ATTORNEY REVIEW REQUIRED: This policy should be reviewed by a financial advisor and legal counsel. Investment parameters, asset allocation targets, and spending policy percentages should be customized based on the Corporation’s financial position and risk tolerance once significant reserves are established.

I. Purpose

This policy establishes guidelines for the investment of funds held by PROVENIQ Foundation, Inc. to ensure that assets are managed prudently, consistently with the Corporation’s fiduciary obligations, and in compliance with the West Virginia Uniform Prudent Management of Institutional Funds Act (WV UPMIFA).

II. Scope

This policy applies to all funds held by the Corporation, including operating reserves, restricted funds, endowment funds (if established), and any other invested assets.

III. Investment Objectives

The Corporation’s investment objectives are to preserve capital, maintain sufficient liquidity to meet operating needs, generate reasonable returns consistent with prudent risk management, and comply with all donor restrictions and legal requirements.

IV. Current Stage Policy

While the Corporation is in its early operating stage, Corporation funds shall be held in FDIC-insured deposit accounts, U.S. Treasury obligations, or equivalent low-risk, highly liquid instruments. No funds shall be invested in equities, alternative investments, or illiquid instruments until the Board adopts a detailed investment strategy following consultation with a qualified financial advisor.

V. Future Investment Guidelines

When the Corporation’s reserves grow to a level that warrants a diversified investment strategy, the Board shall adopt specific asset allocation guidelines. Investments shall be diversified to minimize risk. The Corporation shall not invest in entities whose primary business activities are inconsistent with its mission (for example, puppy mills, animal testing facilities, or similar enterprises). All investments shall comply with the prudent investor standard under WV UPMIFA.

VI. Spending Policy

The Board shall adopt a spending policy governing the rate at which invested funds may be drawn down for operations. Until such policy is adopted, withdrawals from invested reserves shall require Board approval.

VII. Oversight

The Finance, Audit & Risk Committee shall oversee investment performance and compliance with this policy. The Committee shall report to the full Board at least quarterly. If outside investment managers are retained, the Committee shall review performance at least annually.

VIII. Annual Review

This policy shall be reviewed annually by the Finance, Audit & Risk Committee.