Laserfiche WebLink
<br /> . Maturities should be var ied , wi th not more than 20% of the <br /> portfolio i nves ted out 5 years (maximum term) . As informa tion, <br /> the January 1992 profile shows an even closer match to <br /> objectives, and reflects investments made shortly a f te r year end <br /> CI.S " result of tax revenues being available then. <br /> Description of Portfolio (as of 12/31/91 )- <br /> Securities: <br /> 61% CD's, 6X Zero Coupon Bonds, 11 % Gov't 11u tua 1 Funds, <br /> 22% cash or equivalents. <br /> Ma tur i ties: <br /> 49X ma tures within 1 year (although the US Gov't Mutual <br /> Fund inves ts in ma tur i ties 1n the range of 3 - 5 years) , <br /> 74% matures within 2 years, 79'l. matures with in 3 years, <br /> 87% ma tures within 4 years and 100% matures with in 5 <br /> years. <br /> Risk charac ter is tics: <br /> . The risk to pr inc ipa I is virtua lly nil as all inves tmen ts <br /> are either insured by, or are in ob I iga tions of, the US <br /> government. The zero coupon ins trumen ts and the Institutional <br /> Government Fund are subject to market risk ,. as 1n fac t are the <br /> CD's if we were required to liquidate them on shor t notice. Our <br /> philosophy is to inves t for the duration of a ma tur i ty and our <br /> in terna I reports accordingly ref lee t original cos ts. In the <br /> fu ture, we will presen t the difference be tween cost and market <br /> for in forma tion only. <br /> Other fea tures: <br /> The concept of IIladder ing" the ma tur i ties is a commonly <br /> used techn ique to ensure that the overall return wi II tend to <br /> more nearly approximate in termed ia te term interest rate 5 ~ as <br /> inves tmen ts are made at in termed ia te term rates with vary ing <br /> ma tur i ties. This also allows for consistent stream of ma tur i ties <br /> and the oppor tun i ty for inves ting smaller, more frequently <br /> available amounts than if large amoun ts were inves ted in lllumpsll . <br /> This 1S a source of I iq u id funds tha t can either be reinvested or <br /> used Curren t I Y if appropr ia te . <br /> The report s ha 11 explain the total investment return and <br /> compare the re turn with budqetary expec ta tions- <br /> . The to ta 1 re turn for 1991 was $322,423, on an average funds <br /> balance (inc Iud ing cash in bank) of $4,228,255, which equates to <br /> an average y ie ld of 7.63% for the year 1991. <br /> Paae 2 <br />