(A) The investment portfolio shall be diversified by:
(1) Avoiding over-concentration in securities from a specific issuer or business sector (excluding securities issued by the United States government or an agency or instrumentality thereof);
(2) Investing in securities with varying maturities; and
(3) Continuously investing a portion of the portfolio in readily available funds such as money market funds, overnight repurchase agreements or local government investment pools to ensure appropriate liquidity is maintained in order to meet ongoing obligations.
(B) The maximum percentage of the portfolio permitted in each eligible security is as follows:
Permitted Investment | Sector Limit | Issuer Limit |
U.S. Treasury Obligations | 75% | 75% |
Authorized U.S. Federal Agency Securities and U.S. Government-sponsored Corporations | 50% | 50% |
State of Ohio Obligations/State of Ohio Investment Pools | 75% | 75% |
Nonnegotiable Certificates of Deposit | 50% | 50% |
Money Market Mutual Funds | 50% | 50% |
Diversification by Length of Maturity | Maximum Percent of City's Active Portfolio |
1 year or less | 100% |
l to 3 years | 50% |
2 to 5 years | 30% |
5 years | 10% |
(1974 Code, § 39.30) (Ord. 9-94, passed 5-2-1994; Am. Ord. 11-19, passed 5-6-2019)