Item 24 - Annual Statement of Investment Policy

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City of Santa Annual Page A July 1, 2021 Statement of Investment Policy June 30, 2022 APPENDIX III. GLOSSARY OF CITY OF SANTA ANA INVESTMENT POLICY & RELATED CALIFORNIA CODE TERMS AGENCIES: Federal agency securities and/or Government Sponsored Enterprises (GSE). [Referenced pages: 9, 10, 11, 16, 18, 31] ASSET- BACKED SECURITES (ABS): securities supported by pools of installment loans or leases or by pools of revolving lines of credit. [Referenced page: 14] ASSOCIATION OF PUBLIC TREASURERS OF THE UNITED STATES AND CANADA: The Association of Public Treasurers of the United States and Canada (APTUS&C), formerly called the Municipal Treasurers Association of the United States and Canada (MTA US & C) was founded in 1965 and represents public treasury and finance officials in local, county, and state/provincial governments throughout North America. The Association provides educational seminars and conferences, publications, policy and legislative information, and technical assistance to members. [Referenced pages: 6, 21] BENEFICIAL SHARES/MONEY MARKET SHARES: In US securities law, a beneficial owner (as distinct from a "nominee owner," "registered owner," or "record holder") of a security includes any person who, directly or indirectly, has or shares voting or investment power also known as money market shares. [Referenced pages: 12, 18] BENCHMARK: A comparative base for measuring the· performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio's investments. [Referenced pages: 5, 19] BILLS OF EXCHANGE/BANKERS ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. These instruments are accepted as payment by banks engaged in financing trade. For example, a U.S. corporation planning to purchase goods from a foreign vendor will ask its bank to issue a letter of credit on behalf of the corporation. The letter of credit will allow the foreign vendor to draw a draft on the U.S. corporation’s bank to pay for the merchandise. Upon receipt of the letter and the draft, the foreign vendor will ship the merchandise and present the draft at its bank, which allows the vendor to receive payment for the merchandise sold. The vendor’s foreign bank forwards the draft to the U.S. bank, at which point the draft is “accepted” as an obligation that the purchaser’s U.S. bank must pay at a specified maturity date. The U.S. bank may keep the acceptance or may sell it to a third party investor. Bankers’ acceptances are sold at a discount and are considered fairly safe investment instruments because both the purchaser’s bank and the initiating corporation are obligated to pay the holder at maturity. [Referenced pages: 10, 18, 31] BOOK VALUE: The value at which a debt security is shown on the holder's balance sheet. Book value is acquisition cost less amortization of premium or plus accretion of discount. [Referenced pages: 4, 13, 20] BOOK ENTRY: An electronic system of accountability, custody, transfer, and settlement of securities. Book- entry systems allow rapid and accurate transfers of securities with simultaneous cash settlement. [Referenced pages: 31, 33, 35] BROKER: A broker brings buyers and sellers together for a commission. [Referenced page: 11]