Investments Subcommittee Annual Report 2020

submitted by Tracey Rudnick

Current Roster

  • Leslie Andersen, member rotation (2023)
  • Marci Cohen, member rotation (2022)
  • Elizabeth Hille Cribbs, Assistant Administrative Officer (2021)
  • Linda Fairtile, member rotation (2021)
  • Tracey Rudnick, Administrative Officer (2021), chair
  • Anne Shelley, Fiscal Officer (2021)

 

List of Previous Goals and Progress Made

  • Support the Strategic Action Plan by considering fiscal priorities and how they relate to organizational goals. (Taken from the parent Finance Committee goals.)
    • See below. While carrying out activities below, the Investment Subcommittee takes into consideration fiscal priorities and organizational goals set by the board.
  • Goal Statement: MLA’s operations are efficient, effective and transparent.  Objective 1: Develop and sustain the resources to ensure the vitality of the Association, its programs and services.
    • The Investments Subcommittee evaluated instruments, performance, strategies, and risks, and made recommendations for the board, to help the board responsibility invest its funds in accordance with MLA’s financial goals. (The MLA board was responsible for the broader financial picture, and set financial goals, assessed MLA’s risk tolerance, and made investment decisions.)
    • Subcommittee chair (Administrative Officer Rudnick) held phone conversations with Fidelity advisor Charles Cristin in January 2020 regarding socially responsible funds and dollar-cost averaging, and again in August 2020 for MLA’s annual investment strategy review. Rudnick provided summaries to the board and reports to the subcommittee, along with selected investment reports prepared by Pat Wall (MLA Business Office), and additional reports pulled from online accounts, to promote transparency.
    • The subcommittee met in February 2020 (Norfolk meeting) for its regular review of activities. It also reviewed and affirmed the Fidelity account profiles that had recently been updated by the board, reviewed board plans for transferring surplus operational funds into the balanced fund account for growth (in a line separate from the MLA Fund), to help MLA’s funds work for MLA, with the broader goal of fostering the Association’s vitality. (The board rescinded its vote after the COVID-19 onset, when funds were likely to be needed to offset conference cancellation penalties.)
    • The subcommittee continued an ongoing conversation about the socially responsible investment instruments, to (1) see if we can get investing under one roof, e.g., at Fidelity (to promote organization efficiency), and (2) verify that the socially responsible Calvert funds are doing what we think they are doing (to promote transparency and effectiveness). Investigation continues, fruitfully.
    • The subcommittee noted a need for MLA be more clear as to which named funds are being actively built, and which funds are sufficiently built (to promote transparency and effectiveness).
    • The subcommittee met online via Zoom in October 2020 to discuss the upcoming US presidential election and potential market volatility, and review possible actions (to foster the organization’s ongoing health and vitality). The subcommittee re affirmed that the organization could ride out any longer-term downturns. The Administrative Officer shared discussion points with the Finance Committee for further discussion and final decisions.

List of Future Goals

  • Support the Strategic Action Plan by considering fiscal priorities and how they relate to organizational goals. (From the parent Finance Committee goals.)
    • See below.
  • Goal Statement: MLA’s operations are efficient, effective and transparent.  Objective 1: Develop and sustain the resources to ensure the vitality of the Association, its programs and services.
    • Evaluate instruments, performance, strategies, and risks, and make recommendations for the board, to help the board responsibility invest its funds in accordance with MLA’s financial goals.
    • Finish assessment of current and potential socially responsible investment instruments, to ensure instruments are doing what they say they do (to promote transparency and effectiveness), and improve operational efficiencies. 
    • Discuss more routine transfer of surplus funds from MLA’s checking/savings accounts to conservative and/or balanced investment funds, and discuss lump sum versus dollar-cost averaging. It was noted by a subcommittee member that while amounts may be low enough to not warrant dollar-cost averaging, there may be a benefit in terms of organizational comfort, and building steady transfer habits (to improve effectiveness).