In addition to the limitations imposed by law and this policy, Metra will diversify its investments permitted by the Public Funds Investment Act (30 ILCS 235/0.01 et seq.) (“the Act”) to avoid incurring unreasonable risks associated with over-investing in specific instruments, individual qualified institutions or certain maturities in accordance with the following guidelines.
(A) Diversification of permitted investments. See the following table.
Diversification of Permitted Investments | [Recommended] Maximum Percent of Portfolio |
Diversification of Permitted Investments | [Recommended] Maximum Percent of Portfolio |
Bonds, notes, certificates of indebtedness, treasury bills or other securities which are guaranteed by the full faith and credit of the United States of America | 100% |
Bonds, notes, debentures, [short term obligations] and similar obligations [of the Federal National Mortgage Association and] of U.S. Government Agencies. Includes Federal Land Bank, Federal Intermediate Credit Bank, Banks for Cooperatives, Federal Farm Credit Bank, Federal Home Loan Bank, Federal Home Loan Mortgage Corporation and any other agency created by an Act of Congress | (10%) 25% |
Interest-bearing [savings] accounts, certificates of deposit, interest bearing time deposits or other direct obligations of any FDIC insured bank or FSLIC insured savings and loan associations, as defined in the Illinois Banking Act, being 205 ILCS 5/1 et seq., permitted by this policy | 100% |
Commercial paper, as limited by paragraph 2 (a)(4) of the Act (being 30 ILCS 235/2(a)(4)) (short term obligations of corporations organized in the United States with assets exceeding $500 million with obligations rated at time of purchase by 1 of the 3 highest classifications established by at least 2 standard rating services, do not mature more than 180 days from date of purchase, do not exceed 10% of the corporation’s outstanding obligations and no more than 1/3 of the agency’s funds may be invested in short term obligations of corporations) | (33%) 33-1/3% |
Money Market Mutual Funds registered under the Investment Company Act of 1940, being 15 U.S.C. §§ 80a-1 et seq., as limited by paragraph 2 (a)(5) of the Act, being 30 ILCS 235/2(a)(5) | (40%) 20% |
Short term obligations of the Federal National Mortgage Association | 25% |
The Illinois Fund [formerly Public Treasurer’s Investment Pool] | 25% |
Repurchase Agreements (Repos), as limited by paragraph 2 of the Act, being 30 ILCS 235/2 | 50% |
(B) Diversification by qualified institution.
(1) Certificates of deposit (“CDs”) - commercial banks. No more than 20% of the total portfolio with any one institution; and, the amount of the CDs over FDIC insurance coverage shall not exceed 15% of the combined capital stock and surplus of the institution.
(2) Commercial paper. No more than 10% of the total portfolio invested in any one issuer.
(3) Repurchase agreements. No more than 25% of the total portfolio at any one institution.
(Ord. MET 99-24, passed 12-17-1999)