(A) It is the policy of the city to diversify its investment portfolio. Invested funds shall be diversified to minimize the risk or loss resulting form over-concentration of assets in a specific maturity, specific issuer, or specific class of securities. Diversification strategies shall be established and periodically reviewed. At a minimum, diversification standards by security type and issuer shall be:
Security Type | Maximum Percent of Portfolio |
U.S. Treasury obligations | 100% |
U.S. Government agencies and instrumentalities | Not over 50% |
Fully insured or collateralized CDs | Not over 30% |
Local Government Investment Pools | |
Liquidity pools | 100% |
Maximum percent ownership of pool | Not over 20% |
For bond funds | Not authorized |
(B) The Investment Officer shall be required to diversify maturities. The Investment Officer, the extent possible, will attempt to match investment with anticipated cash flow requirements.
(C) Matching maturities with cash flow dates will reduce the need to sell securities prior to maturity, thus reducing market risk.
(Ord. 1303, passed 9-21-2006; Ord. 19-1236, passed 11-7-2019)