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Securities" as a permitted investment to the City's Investment Policy and Guidelines. The <br /> following Supranational Organizations issue bonds that the City would be able to <br /> purchase: (1) International Bank for Reconstruction and Development (IRDB), (2) <br /> International Finance Corporation (IFC), and (3) Inter-American Development Bank <br /> (IADB). California Government Code 53601 (q) defines allowable supranational securities <br /> as United States dollar denominated senior unsecured unsubordinated obligations issued <br /> or unconditionally guaranteed by the IRBD, IFC, or IADB with a maximum remaining <br /> maturity of five years or less, and eligible for purchase and sale within the United States. <br /> Investment Strategy <br /> The overall strategy of the investment program is to earn a market rate of return, while <br /> maintaining sufficient liquidity to meet operating cash requirements. This is accomplished <br /> by maintaining a portfolio of allowable investment instruments that have acceptable credit <br /> quality standards with maturities matching expected cash needs. The City does not <br /> actively trade securities in the open market. We utilize a conservative approach, which is <br /> described as "buy and hold", and means that once we purchase a security, we hold the <br /> security until maturity. <br /> Allowable Investment Instruments <br /> The California Government Code restricts the type of investments that can be made by a <br /> municipal government, and the City's investment policy further restricts the type of <br /> investment instruments that are allowed. The California Government Code also restricts <br /> the maturities of investments to no more than five years and restricts the percentage of <br /> certain investment instruments in the portfolio. The City's investment policy mirrors those <br /> same restrictions. The following table summarizes the investments allowed by the <br /> California Government Code, and of those, the investments allowed by the recommended <br /> City investment policy. It also lists the value of each category in the current portfolio as of <br /> April 30, 2020. <br /> issues concerning the collective body. The European Union and the World Trade <br /> Organization are both supranational entities. <br /> Page 2 of 4 <br />