Laserfiche WebLink
13.0 DIVERSIFICATION <br />The purpose of diversification is to reduce overall portfolio risk while attaining market rates <br />of return and to enable the City to meet all anticipated cash requirements. The investment <br />portfolio shall consist of various types of securities approved by state statute and this <br />Statement of Investments Policy. Investments shall vary in issuers, asset classes, <br />industries and maturities to meet City's financial obligations. Diversifying the investment <br />portfolio will help mitigate the loss of funds as a result of failure of any one issuer. <br />Investments shall further be diversified between structures and imbedded options within <br />the security. <br />The investments shall be diversified by: <br />• Limiting investments to avoid over -concentration in securities of a specific <br />issuer (excluding treasury bills). <br />• Limiting investment in securities that have higher credit risks. <br />• Limiting certificates of deposit to the maximum federally insured amount. <br />• Investing in securities with varying maturities. <br />• Investing a minimum percentage of the total portfolio as established by the <br />FMSA Investment Advisory Committee in highly marketable short-term <br />treasuries, checking accounts with interest, government pooled account, or <br />a combination of all three (See Section 4.1 (A)(iv)). <br />14.0 MAXIMUM MATURITIES <br />14.1 Maximum Maturities <br />To the extent possible, the City of Santa Ana will attempt to match its investments with <br />anticipated cash flow requirements and thus maturities shall coincide as nearly as <br />possible with the anticipated need. The maximum durations for authorized investments <br />pursuant to section 8.2 subsections (A) through (F) are as follows: <br />• United States Treasury Bills. Notes, and Bonds — five (5) years maximum <br />maturity <br />• Obligations issued by a Federal Agency or a United States Government <br />Sponsored Enterprise — five (5) years maximum maturity <br />• Supranational Obligations - five (5) years maximum maturity <br />• Bills of Exchange/Banker's acceptances - one hundred eighty (180) days <br />maximum maturity. <br />• Commercial Paper- two hundred seventy 270 days maximum maturity <br />• Repurchase Agreements —one (1) year maximum maturity <br />City of Santa Ana - Annual July 1, 2019 - <br />Statement of Investment Policy 5 '2 5 June 30, 2020 <br />