Investments shall be managed to accomplish the following hierarchy of objectives.
(A) Preservation of principal.
(1) The single most important objective of each investment is the preservation of principal of those funds within the investments.
(2) It is recognized that occasional losses are inevitable and such possibility will be considered in evaluating diversification decisions and investment strategy.
(B) Maintenance of liquidity.
(1) The investments shall be managed in such a manner that assures that funds are available as needed to meet those immediate and/or future operating requirements of the village. Once cash flow requirements have been satisfied, maturity date selection will be determined by market conditions and interest rate forecasts.
(2) No investment will be made unless at the time the investment is made the Clerk-Treasurer reasonably believes that the investment can be held until maturity. However, an investment may be sold prior to maturity if the Clerk-Treasurer determines that such sale is prudent.
(C) Maximize return. Investments shall be managed in such a fashion as to attain a market- average rate of return throughout budgetary and economic cycles, within the context and parameters set forth by divisions (A) and (B) above.
(D) Minimize cost of services. The fourth objective is to minimize transaction costs. To meet this objective, relationships with securities dealers, investment bankers and other entities providing investment services will be carefully managed to secure high quality services at the lowest reasonable costs.
(Ord. 01-2013, passed 1-7-2013)