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INVESTMENT POLICY: A concise and clear statement of the objectives and parameters formulated by an
<br />investor or investment manager for a portfolio of investment securities. [Referenced pages: 1, 2, 3, 5, 6, 8,
<br />10, 11, 13, 15, 16, 18, 19, 20, 21, 22, 34, 35]
<br />ISSUER: A legal entity that has the power to issue and distribute securities. Issuers include corporations,
<br />municipalities, foreign and domestic governments and their agencies, and investment trusts. [Referenced
<br />pages: 3, 7, 12, 16, 17, 19, 23, 28, 30, 31, 33, 35]
<br />JOINT POWERS AUTHORITIES (JPAs): JPAs are legally created entities that allow two or more public
<br />agencies to jointly exercise common powers. Forming such entities permits public agencies with the means
<br />to provide services more efficiently and in a cost-effective manner such as JPA investment pools. The Joint
<br />Exercise of Powers Act, as codified in California Government Code Section 6500, governs JPAs. Under the
<br />Act, JPAs are restricted to use by public agencies only. However, the term public agency is defined very
<br />broadly. A public agency can include, but is not limited to, the federal government, the state or state
<br />departments, local agencies, mutual water companies, public districts and recognized Indian tribes.
<br />[Referenced pages: 15, 33]
<br />LIQUIDITY: Liquidity describes the degree to which an asset or security can be quickly bought or sold in the
<br />market without affecting the asset's price. [Referenced pages: 2, 3, 4, 5, 11, 12, 13, 19, 20, 211
<br />LOCAL AGENCY/PUBLIC LOCAL AGENCY: Means a county, city, city and county, including a chartered
<br />city or county, school district, community college district, public district, county board of education, county
<br />superintendent of schools, or any public or municipal corporation. [Referenced pages: 10, 11, 15, 17, 20, 21,
<br />22, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35]
<br />LOCAL AGENCY INVESTMENT FUND (LAIF): A voluntary program created by statute in 1977 as an
<br />investment alternative for California's local governments and special districts. Local agencies may
<br />participate in the state's portfolio, which invests hundreds of millions of dollars, using the investment
<br />expertise of the Treasurer's Office investment staff at no additional cost to the taxpayer. LAIF is part of the
<br />Pooled Money Investment Account (PMIA). The PMIA began in 1955 and oversight is provided by the
<br />Pooled Money Investment Board (PMIB) and an in-house Investment Committee. The PMIB members are
<br />the State Treasurer, Director of Finance, and State Controller. The Local Investment Advisory Board (LIAB)
<br />provides oversight for LAIR The Board consists of five members as designated by statute. The State
<br />Treasurer, as Chairman, or his designated representative appoints two members qualified by training and
<br />experience in the field of investment or finance, and two members who are treasurers, finance or fiscal
<br />officers or business managers employed by any county, city or local district or municipal corporation of this
<br />state. [Referenced pages: 11, 15, 17, 21, 22, 25, 26, 34, 35)
<br />LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political
<br />subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.
<br />[Referenced page: 14]
<br />MARKET RISK: The risk that the value of a security will rise or decline as a result of changes in market
<br />conditions. [Referenced page: 131
<br />MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
<br />[Referenced pages: 3, 4, 5, 10, 16, 20, 30, 33, 35)
<br />MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the
<br />parties to repurchase or reverse repurchases a security that establishes each parry's rights in the
<br />transactions. A master agreement will often specify, among other things, the right of the buyer -lender to
<br />liquidate the underlying securities in the event of default by the seller -borrower. [Referenced page: 101
<br />City of Santa Ana - Annual July 1, 2019 -
<br />Statement of Investment Policy d1gly- 52 June 30, 2020
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