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<br /> . Ma tur i ties should be var ied , wi th not more than 20Y. of the <br /> portfolio invested out 5 yeal-s (maximum term) . As information, <br /> the January 1992 profile shows an even closer ma tc h to <br /> objec tives, and ref lec ts investments made shor tl y after year end <br /> d.S a result of tax revenues being available then. <br /> Descr iotion of Por tfo 1 io (as of 12/31/91 )- <br /> Securities: <br /> 61% CD's, 6Y. Zero Coupon Bonds, 11 % Gov't Mu tua 1 Funds, <br /> 22Y. cash or equivalents. <br /> Ma tur i ties: <br /> 49X matures with in 1 year (although the US Gov't Mu tua 1 <br /> Fund inves ts in ma tu, i ties 1n the ,-ange of 3 - 5 yea,s) , <br /> 74Y. matures within 2 years, 79Y. matures with in 3 years, <br /> 87Y. matures within 4 yea,s and 100Y. ma tures within 5 <br /> years. <br /> Risk characteristics: <br /> . The risk to pr inc ipa 1 is virtually nil as all investments <br /> are either insured by, or a,e 1n ob 1 iga tions of, thE' US <br /> governmen t. The zero coupon ins trumen ts and the Institutional <br /> GovernmE'nt Fund are subject to ma,ket risk, as in fact are the <br /> CD's if we were required to liquidate them on shor t notice. Ou, <br /> philosophy is to inves t for the duration of a maturity and ou, <br /> in terna 1 reports according ly reflect 0, iginal cos ts. In the <br /> future, we will presen t the diffe,ence between cost and market <br /> for information only. <br /> Other fea tu,es: <br /> The concept of II ladder ing II the ma tur i ties 1S a commonly <br /> used techn ique to ensure that the overa 11 ,eturn will tend to <br /> more nearly approximate in termed ia te term interest ra tes, as <br /> inves tmen ts are made at inte,mediate term rates with varying <br /> ma tu, i ties. This also allows fo, consistent s tr earn of ma tur i ties <br /> and the oppor tun i ty for inves ting smaller, more frequently <br /> available amoun ts than if large amoun ts were inves ted in 1I1umpsll . <br /> This 1S a source of 1 iqu id funds tha t can either be re inves ted 0, <br /> used currently if appropr ia te. <br /> The repor t shall exp lain the to ta 1 invE's tmen t return and <br /> compare the return with budqetary e xpec ta tions- <br /> The to ta 1 re turn for 1991 was $322,423, on an average funds <br /> . balance (inc lud ing cash 1n bank) of $4,228,255, which equates to <br /> an average yield of 7.63% for the yea, 1991. <br /> Paqe 2 <br />