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PRUDENCE <br /> Pursuant to California Government Code, Section 53600.3, all persons authorized to <br /> make investment decisions on behalf of the City are trustees and therefore fiduciaries <br /> subject to the Prudent Investor Standard: <br /> "...all governing bodies of local agencies or persons authorized to make <br /> investment decisions on behalf of those local agencies investing public funds <br /> pursuant to this chapter are trustees and therefore fiduciaries subject to the <br /> prudent investor standard. When investing, reinvesting, purchasing, acquiring, <br /> exchanging, selling, or managing public funds, a trustee shall act with care, skill, <br /> prudence, and diligence under the circumstances then prevailing, including, but <br /> not limited to, the general economic conditions and the anticipated needs of the <br /> Agency, that a prudent person acting in a like capacity and familiarity with those <br /> matters would use in the conduct of funds of a like character and with like aims, to <br /> safeguard the principal and maintain the liquidity needs of the Agency. Within the <br /> limitations of this section and considering individual investments as part of an <br /> overall strategy, investments may be acquired as authorized by law." <br /> Investment officers acting in accordance with written procedures and the investment <br /> policy and exercising due diligence shall be relieved of personal responsibility for an <br /> individual security's credit risk or market price changes, provided deviations from <br /> expectations are reported in a timely fashion and appropriate action is taken to control <br /> adverse developments. <br /> OBJECTIVES <br /> The primary objectives, in priority order, of the City's investment program shall be: <br /> a. Safety: Safety of principal is the foremost objective of the investment program. <br /> Investments of the City shall be undertaken in a manner that seeks to ensure the <br /> preservation of capital in the overall portfolio. To attain this objective, the City will <br /> diversify its investments by investing funds among a variety of securities with <br /> independent returns. <br /> b. Liquidity: The City's investment portfolio will remain sufficiently liquid to enable the <br /> City to meet all operating requirements which might be reasonably anticipated. <br /> C. Return on Investment: The City's investment portfolio shall be designed with the <br /> objective of attaining a market rate of return throughout budgetary and economic <br /> cycles, taking into account the City's investment risk constraints and the cash flow <br /> characteristics of the portfolio. <br /> DELEGATION OF AUTHORITY <br />