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<br />institute of higher learning or any other sponsor other than a Business Organization with whom <br />the City may engage in investment transactions. Independent sources that may provide <br />investment training include the Government Treasurer's Organization of Texas, the University <br />of North Texas, the Government Finance Officers Association of Texas, or the Texas Municipal <br />League. Training shall be in accordance with the Public Funds Investment Act and shall include <br />education in investment controls, security risks, market risks, and compliance with statutes <br />governing the investment of public funds. <br /> <br />VI. INVESTMENTS <br /> <br />ACTNE PORTFOLIO MANAGEMENT The City intends to pursue active versus passive <br />portfolio management philosophy. That is, securities may be sold before they mature ifmarket <br />conditions present an opportunity for the City to benefit from the trade. <br /> <br />ELIGIBLE INVESTMENTS Assets of funds of the government of the City of La Porte may be <br />invested in the following as authorized by the Public Funds Investment Act: <br /> <br />A. Obligations of, or Guaranteed by Governmental Entities <br /> <br />1. Except as provided by Subsection 2, the following are authorized investments under this <br />section: <br /> <br />a) obligations of the United States or its agencies and instrumentalities; <br /> <br />b) direct obligations of this state or its agencies and instrumentalities; <br /> <br />c) collateralized mortgage obligations directly issued by a federal agency or <br />instrumentality of the United States, the underlying security for which is guaranteed <br />by an agency or instrumentality of the United States; <br /> <br />d) other obligations, the principal and interest of which are unconditionally guaranteed <br />or insured by, or backed by the full faith and credit of, this state or the United States <br />or their respective agencies and instrumentalities; and <br /> <br />e) obligations of states, agencies, counties, cities, and other political subdivisions of any <br />state rated as to investment quality by a nationally recognized investment rating firm <br />not less than A or its equivalent. <br /> <br />2. The following are not authorized investments under this section: <br /> <br />a) obligations whose payment represents the coupon payment on the outstanding <br />principal balance of the underlying mortgage-backed security collateral and pays not <br />principal (Interest only bonded); <br /> <br />b) obligations whose payment represents the principal stream of cash from the <br />underlying mortgage-backed security collateral and pays no interest (Principal only <br />bonds); <br /> <br />c) collateralized mortgage obligations that have a final stated maturity date of greater <br />that 10 years; and <br />