Investments entered into by the city will be diversified by security type, industry, institution and maturity to spread potential investment risk and return among many classes of investments. As measured by cost, the portfolio will be invested no more than fifty percent (50%) in any one class of investments (this restriction does not apply to U.S. treasury bonds, notes, and bills; U.S. government agency obligations; and the Utah state public treasurer's investment fund). Diversification of investments with a single institution must comply with applicable rules of the act, specifically:
A. No more than twenty percent (20%) of funds may be invested in any one permitted qualified out of state depository institution. (Rule 10, 5)
B. No more than ten percent (10%) of the total portfolio with a single commercial paper or corporate notes issuer if the portfolio is ten million dollars ($10,000,000.00) or less. (Rule 17, 5)
C. No more than one million dollars ($1,000,000.00) in a single commercial paper or corporate notes issuer if the portfolio is greater than ten million dollars ($10,000,000.00) but less than twenty million dollars ($20,000,000.00). (Rule 17, 5)
D. No more than five percent (5%) of the total portfolio with a single commercial paper or corporate notes issuer if the portfolio is twenty million dollars ($20,000,000.00) or more. (Rule 17, 5)
Further, for issuers which are not covered by rules or statute, the city will restrict its investments to no more than twenty percent (20%) with a single issuer with the exception of funds invested with the Utah state treasurers' pool (referred to hereafter as "the state pool"), U.S. treasury securities, U.S. government agency securities, or funds held in trust (i.e., construction, sinking, or reserve bond funds, etc.). (Eff. 4-4-2016)