Investment Policy

1. Objective: To manage the cooperative's financial resources prudently to maximize returns while minimizing risks, supporting the cooperative's ability to meet its financial obligations to its members and promote long-term sustainability.

2. Scope of Policy: This policy applies to all investment activities undertaken by DEPCC, including the investment of surplus funds, retirement funds, reserve funds, and any other financial assets.

3. Investment Principles:

• Safety of Principal: The primary consideration shall be the safety of capital, ensuring that investment principal is not jeopardized.
• Liquidity: Investments shall remain sufficiently liquid to meet current obligations and unexpected expenses.
• Return on Investments: Investments should generate a fair return, keeping in mind safety and liquidity constraints.

4. Authority and Oversight:

• The Board of Directors is responsible for establishing and reviewing the investment policy at least annually.
• A designated Investment Committee shall execute and monitor daily investment activities according to this policy and report regularly to the Board.

5. Investment Vehicles:

• Fixed Deposits: Short-term or long-term deposits with high credit quality financial institutions.
• Mutual Funds: Investments in mutual funds that are managed conservatively with a focus on fixed-income securities.
• Real Estate: Investments in real estate properties should only be considered if aligned with cooperative objectives, such as future branch expansion, and must be approved by the Board.

6. Risk Management:

• Diversification: Investments shall be diversified to avoid exposure to unreasonable risks associated with specific securities or individual financial institutions.
• Credit Risk: Only invest in instruments with high credit quality to minimize the risk of loss.
• Interest Rate Risk: Manage sensitivity to interest rate changes by maintaining a balanced portfolio in terms of maturity and yield.

7. Ethical Considerations:

• Investments should align with the ethical values and social goals of the cooperative, avoiding any investments in businesses that contradict the cooperative’s mission.

8. Reporting and Performance Review:

• The Investment Committee or Financial Officer shall provide quarterly reports to the Board, detailing performance, compliance with the investment policy, and an overview of the investment market conditions.
• An annual review of the investment strategy and performance shall be conducted to ensure alignment with the cooperative's financial goals and economic conditions.

9. Amendments:

• This policy may be amended by a majority vote of the Board of Directors based on changing financial conditions, member needs, or strategic goals of the cooperative.