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derived from an underlying index or security (interest rates, foreign <br />exchange rates, equities or commodities); <br />• Investment agreements — contracts regarding funds deposited by an <br />investor often separated into those offered by banks and those offered by <br />insurance companies commonly known as Guaranteed Investment <br />Contracts (GICs) or Guaranteed Investment Agreements (GIAs); <br />• Mortgage -backed securities — securities created when a mortgage or <br />purchaser of residential real estate mortgages creates a pool of mortgages <br />and markets undivided interests or participation in the pool, including <br />principal only strips; <br />• Reverse Repurchase agreements — agreements involving the borrowing of <br />cash from a financial institution for the purchase of securities in which a <br />financial asset is instead pledged as a collateral for a loan in which the roles <br />of borrower and lender are reversed. <br />• Securities lending agreements — agreements allowing local agencies to earn <br />incremental income on their investment portfolio by loaning securities in their <br />portfolio to financial services companies for a limited time; <br />9.3 Prohibited Investment Practices <br />Assets of the City shall not be invested pursuant to the following investment <br />practices: <br />Trading of securities strictly for speculation or solely for the realization of <br />short-term trading gains. <br />A contract providing for the compensation of an agent or fiduciary solely <br />based upon the performance of the invested assets. <br />If a fiduciary or other third party with custody of public investment <br />transaction records of the City fails to produce records within a reasonable <br />time, when requested by the City, the City shall make no new investments <br />with or through the fiduciary or third party and shall not renew maturing <br />investments with or through the fiduciary or third party. <br />10.0 INVESTMENT POOLS/MUTUAL FUNDS <br />The Executive Director for FMSA or his/her designee shall be required to investigate all <br />local government investment pools and money market mutual funds, other than the <br />state Local Agency Investment Fund (LAIF), prior to investing and perform at least a <br />quarterly review thereafter while the City is invested in the pool or the money market <br />fund. <br />City of Santa Ana - Annual July 1, 2019 - <br />Statement of Investment Policy 5W2 June 30, 2020 <br />