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<br />.. <br />. Discussion <br /> 1.. In exchange for reduced liquidity, the proposed change to allow <br /> additional portfolios longer average maturities would offer <br /> participants the potential of slightly higher yields as portfolio <br /> maturities rrove out a little further on the yield curve. <br /> 2a. The reccmrendation to allow investments of rrore than one year <br /> dovetails with point #1 discussed above. It would also allow the <br /> Fund. to invest in new govemrrent agency se=ities (e.g. <br /> maturities of less than three years with a 397 day coup:lIl reset <br /> provision) . <br /> 2b. Reverse repoe can re consezvative strategy elements to accarrn:xJate <br /> fluctuating liquidy needs without necessarily selling portfolio <br /> se=ities at inopportune titres. <br /> Conclusion <br /> I relieve the thrust of these arrendrrents is to make the 4M Fund rrore <br /> ccmpetitive * vis-a-vis other 11OI1ey market funds. I further relieve <br /> that the ircpact of these changes will allow participants rrore <br /> risk/reward options as individual l'lU.lIlicipalities may wish to rrove out on <br />. the yield CUl:Ve. <br /> Reccmrenclation <br /> Staff reccmnend.s that Council adopt Resolution No. 94-09, "Resolution <br /> Authorizing Execution of Proxy in Favor of eertain Arnendrrents to the <br /> Declaration of Trust of the Minnesota Municipal M:lney Market Fund" and <br /> that the eity Administrator re authorized to execute a proxy and forward <br /> it to the proxy agent to be voted accordingly. <br /> * The Declaration of Trust was =eated in January, 1987. <br /> TRP/sjl <br />. A;4MRN) .M-c <br />---.- <br />