(A) To avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions, dealers or maturities, the Clerk-Treasurer will diversify the active portfolio as follows:
Diversification by Instrument | Maximum Percent of Town’s Active Portfolio |
Diversification by Instrument | Maximum Percent of Town’s Active Portfolio |
U.S. Treasury obligations | 100% |
Authorized U.S. Federal Agency Securities and U.S. government-sponsored corporations | 100% |
*Maximum per single agency | 100% |
Indiana issued municipal securities | 100% |
Certificates of deposit covered under FDIC or PDIF | 100% |
Money market savings account | 100% |
State government investment pool | 100% |
Repurchase agreements | 100% |
Diversification by Stated Financial Maturity | Maximum Percent of Town’s Active Portfolio |
Up to 2 years | 100% |
More than 2 years but not greater than 5 years | 25% |
(B) In accordance with I.C. 5-13-9-5.7, up to 25% of the total town portfolio, including balances in transaction accounts may be invested for terms of more than two years after the date of purchase or entry into a repurchase agreement, but not more than five years. As long as this investment policy is in effect when the investment is made, the investment remains compliant with the policy even if:
(1) The investment policy has expired; or
(2) A subsequent decrease in the total portfolio, including balances in transaction accounts, causes the percentage of investments outstanding under this parameter to exceed 25% of the total portfolio of funds invested.
(C) An investing officer, with approval of the Town Council, may contract with a federally regulated investment advisor or other institutional money manager to make investments under this section.
(Res. R-18-02, passed 1-30-2018)