(A) Diversification. The investments shall be diversified by security type and institution.
(B) Selection of investment instruments. The Board shall invest any surplus funds for a specific maturity date that is required for either cash flow purposes or for conformance to maturity guidelines, if such instruments which would be most advantageous under prevailing market conditions, exist. Records will be kept of all investments purchased or sold by the Board in compliance with statues.
(C) Performance benchmark. In order to effectively measure investment performance for a managed portfolio, an established benchmark will be selected and approved by the Investment Committee. The appropriate benchmark will be selected based on the portfolio goals and objectives as governed by guidelines in this policy.
(D) Investment parameters - operating funds. To the extent possible, the Board will attempt to match its investments with anticipated cash flow requirements. Maturity scheduling shall be timed according to anticipated need. The maximum maturity should not exceed three years and the portfolio duration should not exceed two.
(E) Investment parameters - reserve funds. Reserve funds and other funds with longer-term horizons may be invested in securities with the following guidelines. The maximum maturity should not exceed five years and the portfolio duration should not exceed three.
(F) Specific investment goals.
(1) Over a five-year investment horizon it is the goal of the Board to meet or exceed the annual rate of return of prescribed benchmarks as determined from time to time by the Investment Committee.
(2) The Board of Trustees understands that in order to achieve its objectives of the investment of assets, the investments will experience volatility of returns and fluctuations of market value as well as periods of losses. Losses will be viewed within the context of appropriate market indices.
(Ord. 2710-99, passed 10-20-99; Am. Ord 21-1696, passed 4-7-21)