CCP 03-26-2001 - 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 Al!:l!:rel!ate Maturities Investment Bv Catel!orv Annual Entire Year Catel!orv Amount Pct Amount Pct Portfolio 2001 Cash $ 6,679 100% FRl $ 2,100 31% Zero $ 476 28% $ 9,255 62% 62% 2002 FRl $ 1,296 20% Zero $ 280 17% $ 1,576 10% 72% 2003 FRl $ 1,090 16% Zero $ 346 20% $ 1,436 10% 82% 2004 FRl $ 1,092 16% Zero $ 297 18% $ 1,389 9% 91% 2005 FRl $ 1,100 17% Zero $ 286 17% $ L386 9% 100% . $15,042 $15,042 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 D,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 and zero coupon instruments, this market risk is mitigated by an investment policy to hold for the duration of a maturity, Accordingly, internal reports reflect original costs, Maturity Philosouhv 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