07-23-12 Fiscal Affairs Committee

Browse Search

D. Bankers' acceptances with a stated maturity of 270 days or fewer from the date of its issuance; liquidated in full at maturity; eligible for collateral for borrowing from a Federal Reserve Bank; and accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less that A-1 or P-1 or an equivalent rating by at least one nationally recognized credit rating agency. (Section 2256.012 of the Act) E. Commercial Paper with a stated maturity of 270 days or fewer from the date of its issuance; and is rated not less than A-1 or P-1 or an equivalent rating by at least two nationally recognized credit rating agencies. (Section 2256.013 of the Act) F. AAA -rated, no-load money market mutual funds registered with and regulated by the Securities and Exchange Commission; having a dollar -weighted average stated maturity of 90 days or fewer; and includes in its investment objectives the maintenance of a stable net asset value of $1 for each share. (Section 2256.014 of the Act) The Fund must provide the City with a prospectus and other information required by the Securities and Exchange Act of 1934 (15 U.S.C. Section 80a-1 et seq.); The City is not authorized by Section 2256.014 (c) of the Act to: invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds and reserves in other funds held for debt service, in mutual funds described in the Act (Section 2256.014); invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described in the Act (Section 2256.014); or invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service, in any one mutual fund described in the Act (Section 2256.014) in an amount that exceeds 10 percent of the total assets of the mutual fund. G. Guaranteed Investment Contracts (GICS) with a defined termination date; secured by obligations described in the Act (Section 2256.009) in an amount at least equal to the amount of bond proceeds invested under the contract; and pledged to the City and deposited with the City or with a third party selected and approved by the City. GICS are further subject to the limitations contained in Section 2256.015 of the Act. H. AAA -rated, constant dollar, investment pools with a weighted average maturity of no greater than 90 days as authorized by the City Council and as further defined by the Act, which invests in eligible securities as authorized by Section 2256.016 of the Act. EXISTING INVESTMENTS The Investment Officer is not required to liquidate investments that were authorized investments at the time of purchase. Any investments currently held that do not meet the guidelines of this policy shall be reviewed to determine the ability to liquidate. If the investment cannot be liquidated because of material adverse change in the value since the time of purchase, and holding the investment to maturity does not negatively affect disbursements or cash flow, a recommendation of holding said investment to maturity is acceptable. MAXIMUM MATURITIES The maximum stated maturity, from the date of purchase, for any individual investment may not exceed 5 years and the maximum dollar -weighted average maturity for the pooled fund group (investment portfolio) may not exceed 2 years.