(A)   Preservation of principal. The primary investments objective is preservation of principal. To meet this objective, portfolio diversification will be established and maintained with a goal of generating portfolio income that exceeds any losses in individual security values. The village will diversify its investments to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions. It is recognized that occasional losses are inevitable and such possibility will be considered in evaluating diversification decisions and investment strategy. All investment and deposit transactions must be made in conformance with all applicable laws and ordinances prevailing at the time of transaction.
   (B)   Liquidity. The second investment objective is maintenance of liquidity of assets. The village's investment portfolio will remain sufficiently liquid to enable the village to meet operating requirements which might be reasonably anticipated. No investment will be made unless, at the time the investment is made, the Fiscal Officer reasonably believes that the investment can be held until maturity. However, an investment may be sold prior to maturity if the Fiscal Officer determines that such sale is prudent.
   (C)   Income maximization. Income maximization is the third investment objective. To accomplish this objective, the investment portfolio will be managed with the goal of producing income returns within acceptable risk parameters. High financial risk is unacceptable. Thus, moderate income volatility will be permitted, but no investments which are expected to be subject to large interest rate fluctuations will be made.
   (D)   Minimization of 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 while simultaneously minimizing costs.
(Ord. 98-6-7, passed - -98)