My WebLink
|
Help
|
About
|
Sign Out
Home
Browse
Search
06-20-07 FPAC Minutes
ArdenHills
>
Administration
>
Commissions, Committees, and Boards
>
Financial Planning and Analysis Committee (FPAC)
>
FPAC Packets
>
2007
>
06-20-07 FPAC Minutes
Metadata
Thumbnails
Annotations
Entry Properties
Last modified
6/24/2024 4:07:07 PM
Creation date
11/9/2007 2:19:12 PM
Metadata
Fields
Template:
General
Document
06-20-07 Minutes
General - Type
Minutes
Date
6/20/2007
Jump to thumbnail
< previous set
next set >
There are no annotations on this page.
Document management portal powered by Laserfiche WebLink 9 © 1998-2015
Laserfiche.
All rights reserved.
/
209
PDF
Print
Pages to print
Enter page numbers and/or page ranges separated by commas. For example, 1,3,5-12.
After downloading, print the document using a PDF reader (e.g. Adobe Reader).
View images
View plain text
For cash management funds: <br /> • • Liquidity shall be assured through practices ensuring that the next disbursement date <br /> and payroll date are covered through maturing investments or marketable U.S. <br /> Treasury bills. <br /> • Positions in securities having potential default risk(e.g., commercial paper) shall be <br /> limited in size so that in case of default,the portfolio's annual investment income will <br /> exceed a loss on a single issuer's securities. <br /> • Risks of market price volatility shall be controlled through maturity diversification <br /> such that aggregate price losses on instruments with maturities exceeding one year <br /> shall not be greater than coupon interest and investment income received from the <br /> balance of the portfolio. <br /> • The investment committee/investment officer shall establish strategies and guidelines <br /> for the percentage of the total portfolio that may be invested in securities other than <br /> repurchase agreements,Treasury bills or collateralized certificates of deposit. The <br /> committee shall conduct a quarterly review of these guidelines and evaluate the <br /> probability of market and default risk in various investment sectors as part of its <br /> considerations. <br /> AND/OR <br /> The following diversification limitations shall be imposed on the portfolio: <br /> • Maturity: No more than xx percent of the portfolio may be invested beyond 12 <br /> months, and the weighted average maturity of the portfolio shall never exceed one <br /> year. <br /> • • Default risk: No more than xx percent of the overall portfolio may be invested in the <br /> securities of a single issuer,except for securities of the U.S.Treasury. No more than <br /> xx percent of the portfolio may be invested in each of the following categories of <br /> securities: <br /> a) Commercial paper, <br /> b) Negotiable certificates of deposit, <br /> c) Bankers' acceptances, <br /> d) Any other obligation that does not bear the full faith and credit of the United <br /> States government or which is not fully collateralized or insured and <br /> e) No more than xx percent of the total portfolio may be invested in the foregoing <br /> instruments at any time. <br /> • Liquidity risk: At least xx percent of the portfolio shall be invested in overnight <br /> instruments or in marketable securities which can be sold to raise cash in one day's <br /> notice. <br /> 2. Maximum Maturities <br /> To the extent possible,the [entity] shall attempt to match its investments with anticipated cash flow <br /> requirements. Unless matched to a specific cash flow,the [entity]will not directly invest in <br /> securities maturing more than five(5)years from the date of purchase or in accordance with state <br /> and local statutes and ordinances.The [entity] shall adopt weighted average maturity limitations <br /> (which often range from 90 days to 3 years), consistent with the investment objectives. <br /> Reserve funds and other funds with longer-term investment horizons may be invested in securities <br /> exceeding five(5)years if the maturities of such investments are made to coincide as nearly as <br /> • practicable with the expected use of funds. The intent to invest in securities with longer maturities <br /> shall be disclosed in writing to the legislative body. (See the GFOA Recommended Practice on <br />
The URL can be used to link to this page
Your browser does not support the video tag.