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Exhibit C <br />City of La Porte, Texas <br />Investment Strategy Statement <br />The City of La Porte, Texas (the "City") will strive to administer and invest its pooled funds at <br />the highest investment return possible while always taking into account the primary goals of <br />preservation of principal and liquidity of funds invested consistent with the City's investment <br />policy. <br />The City's funds, which are pooled together and constitute the investment portfolio, include all <br />financial assets of all funds managed by the City, including but not limited to receipts of tax <br />revenues, charges for services, bond proceeds, interest incomes, loans and funds received by the <br />City where the City performs a custodial function. <br />The City will never invest its funds in a security that is deemed unsuitable to the financial <br />requirements ofthe City. Maturities will be staggered in a manner that meets the cash flow <br />needs of the City. <br />The primary investment objective is the preservation and safety of principal. Each investment <br />transaction shall seek first to ensure that principal losses are avoided, whether they are from <br />security defaults or erosion of market value. <br />The City's investment portfolio will remain sufficiently liquid to enable the City to meet <br />operating requirements that might be reasonably anticipated. Liquidity shall be achieved by <br />matching investment maturities with forecasted cash flow requirements and by investing in <br />securities with active secondary markets. <br />The City shall always maintain a highly diversified investment portfolio in order to reduce the <br />amount of credit and market risk exposed to the City's portfolio. <br />After first considering safety and liquidity, the City's investment portfolio shall be designed with <br />the objective of regularly exceeding the average rate of return on U.S. Treasury Bills at a <br />maturity level comparable to the City’s weighted average maturity in days. The City shall seek <br />to augment returns above this threshold consistent with risk limitations identified in the City's <br />investment policy and prudent investment principles. <br />11 <br /> <br />