CCP 02-09-1998 - Laserfiche WebLink

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Portfolio Maturities . Maturities should be varied, with not more than twenty percent (20%) of the portfolio invested out five years (maximum term). Maturities ($ in OOO's) Annual Maturities Aggrcgate Maturities Invcstment Bv Category Annual Entire Year Category Amount Pct Amount Pct Portfolio 1998 Cash $ 4,120 100% FRI $ 1,100 19% Zero $ 589 18% $ 5,809 52% 52% 1999 FRI $ 1,195 22% Zero $ 282 21% $ 1,477 13% 65% 2000 FRI $ 1,095 23% Zero $ 271 20% $ 1,366 12% 77% 2001 FRI $ 1,100 18% Zero $ 297 20% $ 1,397 13% 90% 2002 FRI $ 800 18% Zero $ 280 21% $ 1.080 10% 100% . $11.129 $11.129 Risk Characteristics The risk to principal due to credit quality is low as almost all investments are either insured by, or are an obligation of, the U.S. Government. Fixed rate investments, and zero coupon investments, are all subject to market risk if required to liquidate on short notice. In the case of fixed rate instruments coupon and zero instruments, this market risk is mitigated by a philosophy to hold for the duration of a maturity. Accordingly, intema1 reports reflect original costs. Maturity Philosophy The concept of "laddering" maturities is a commonly used technique that, in this case, supports an objective that overall return will tend to more nearly approximate two year Treasury Note interest rates, as investments are made at then current five year intermediate term rates with varying maturities. This also allows for a consistent stream of maturities and the opportunity for investing in smaller, more frequently available amounts than if large amounts were invested in "lumps." This is a source ofliquid funds that can either be reinvested or used for current needs as appropriate. 3 .