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invest in the aggregate more than 15 percent of its monthly average fund balance, <br />excluding bond proceeds and reserves in other funds held for debt service, in mutual <br />funds described in the Act (Section 2256.014); <br />invest any portion of bond proceeds, reserves and funds held for debt service, in <br />mutual funds described in the Act (Section 2256.014); or <br />invest its funds or funds under its control, including bond proceeds and reserves and <br />other funds held for debt service, in any one mutual fund described in the Act (Section <br />2256.014) in an amount that exceeds 10 percent of the total assets of the mutual <br />fund. <br /> <br />E.Investment pools, as authorized by the City Council, must be AAA or AAA-M rated, or an <br />equivalent rating by at least one nationally recognized rating service. A public funds <br />investment pool that uses amortized cost or fair value accounting must mark its portfolio to <br />market daily, and to the extent reasonably possible, stabilize at a $1.00 net asset value, when <br />rounded and expressed to two decimal places. To maintain eligibility to receive funds from <br />and invest on behalf of the City, an investment pool must adhere to reporting and investment <br />requirements defined by Section 2256.016 of the Act. <br /> <br />EXISTING INVESTMENTS The Investment Officer is not required to liquidate investments that <br />were authorized investments at the time of purchase. Any investments currently held that do not <br />meet the guidelines of this policy shall be reviewed to determine the ability to liquidate. An <br />investment that requires a minimum rating under this subchapter does not qualify as an <br />authorized investment during the period the investment does not have the minimum rating. An <br />entity shall take all prudent measures that are consistent with its investment policy to liquidate <br />an investment that does not have the minimum rating. If the investment cannot be liquidated <br />because of material adverse change in the value since the time of purchase, and holding the <br />investment to maturity does not negatively affect disbursements or cash flow, a recommendation <br />of holding said investment to maturity is acceptable. <br />MAXIMUM MATURITIES The maximum stated maturity, from the date of purchase, for any <br />individual investment may not exceed 5 years and the maximum dollar-weighted average <br />maturity for the pooled fund group (investment portfolio) may not exceed 2 years. <br />DIVERSIFICATION It is the policy of the City to diversify its investment portfolios. Assets held in <br />the pooled investment portfolio shall be diversified to eliminate the risk of loss resulting from <br />over-concentration of assets in a specific maturity, specific issuer or specific class of securities. <br />Diversification strategies shall be determined and revised periodically by the Fiscal Affairs <br />Committee. <br />FINANCIAL INSTRUMENTS Maximum allowable percentages of the total portfolio for investments <br />are stated as follows: <br />Investment TypeMaximum Limit <br />1. Investment Pools 100% <br />2. Money Market Accounts 10% <br />3. Certificates of Deposit 60% <br />4. U.S. Government Securities 80% <br />5. U.S. Agency Securities 80% <br /> <br />