(A) The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment constraints herein and the cash flow needs of the city.
(B) Market yield (benchmark). While the investment policy is designed to provide control, the yield objective is also important. The city's investment strategy is active. The Finance Director will identify a comparable benchmark for each type of investment within the city's investment portfolio to determine whether proper market yields are being achieved. Given the strategy, the city shall strive to achieve returns at the market-average rate of return. The market-average of return is generally defined as the average return on three-month U.S. Treasury Bills, or the South Carolina Local Government Investment Pool administered by South Carolina State Treasurer. These indices are considered benchmarks for lower risk investment transactions and comprise a minimum standard for the portfolio's rate of return. The investment program shall seek to augment returns above this threshold, consistent with authorized type, maturity, collateralization, and diversification limitations identified herein.
(Ord. 16-21, passed 6-8-21)