(A) The standard of prudence to be used for managing the county’s investment program is the Prudent Investor Rule applicable to a trustee, as set forth in the Indiana Uniform Prudent Investor Act (I.C. 30-4-3.5). I.C. 30-4-3.5-2(a) states that “A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.”
(B) The county’s overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The county recognizes that no investment is totally without risk and that its investment activities are a matter of public record. Accordingly, the county recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered within the context of the overall portfolio’s return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the county.
(C) The Treasurer and other authorized persons acting in accordance with written procedures and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion to the Board of Finance and appropriate action is taken to control adverse developments.
(Ord. 2019-01, passed 1-28-2019; Ord. 2020-01, passed 1-27-2020; Ord. 2021-01, passed 1-25-2021; Ord. 2022-01, passed 1-24-2022)