Resolution 2007-05 - Laserfiche WebLink

Home Browse Search

Approved by Finance Committee-December 18, 2006 . Any money market fund that is registered as an investment company under the federal "Investment Company Act of 1940", as amended, it,a t the time the investing public entity invests in such fund. . The purchase of any repurchase agreement of securities that are marketable. The securities must be delivered to the public entity's custodian or to a third-party custodian or third-party trustee for safekeeping on behalf of the public entity. The collateral securities of the repur- chase agreement must be collateralized at no less than one hundred two percent and marked to market no less frequently than weekly. The securities subject to the repurchase agreement may have a maturity in excess of five years. The repurchase agreement itself may not have a maturity of more than five years unless the City Council of the public entity authorizes invest- ment for a period in excess of five years. Standards of Care and Performance The "reasonable prudence" standard shall be used by investment officials in the context of manag- ing an overall portfolio. The "reasonable prudence" standard provides that investments shall be made with the judgment and care, under circumstances then prevailing, which persons of pru- dence, discretion and intelligence exercise in the management of the property of another, not in regard to speculation, but in regard to the permanent disposition of funds, considering the probable income as well as the probable safety of the capital. The City recognizes that no investment is totally without risk and that the investment activities of the City are a matter of public recore!. Accordingly, the City recognizes that occasional measured losses are inevitable in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the City. In addition, officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct busi- ness. They shall further disclose any personal financial/investment positions that could be related to the performance ofthe investment portfolio. Employees and officers shall refrain from under- taking personal investment transactions with the same individual with whom business is con- ducted on behalf of the City. 3