Laserfiche WebLink
194 <br />195 The procedures shall consist of yield curve analysis and implemented with the appropriate purchase of <br />196 the above investments. <br />197 <br />198 Maturity scheduling shall be within those investments and in a manner that will maximize yield and <br />199 liquidity and minimize interest rate risk. <br />200 <br />201 Competitive Selection of Investment Instruments <br />202 Before the City invests any surplus funds, a competitive "bid" process shall be conducted. If a specific <br />203 maturity date is required, either for cash flow purposes or for conformance to maturity guidelines, bids <br />204 will be requested for instruments that meet the maturity requirement. If no specific maturity is required, <br />205 a market trend (yield curve) analysis will be conducted to determine which maturities would be most <br />206 advantageous. Bids will be requested from financial institutions for various options with regards to term <br />207 and instrument. The City will accept the bid that provides the highest rate of return within the maturity <br />208 required and within the parameters of these procedures. <br />209 <br />210 Bids for purchases through the treasury auctions are not required. <br />211 <br />212 Records will be kept of the bids offered, the bids accepted and a brief explanation of the decision that <br />213 was made regarding the investment. <br />214 <br />215 Settlement <br />216 All settlements of investments shall be on a "Delivery vs. Payment" (DVP) basis. Physical delivery shall <br />217 be avoided if at all possible, with book entry being the preferred method of safekeeping. <br />218 <br />219 Safekeeping and Collateralization <br />220 All investment securities purchased by the City shall be held in third-party safekeeping by an institution <br />221 designated as primary agent. The primary agent shall issue a safekeeping receipt to the City listing the <br />222 specific instrument, rate, maturity and other pertinent information. <br />223 <br />224 Equity Investments <br />225 As long as the City is a qualifying government, it may invest up to 15 percent of the sum of unassigned <br />226 cash, cash equivalents, deposits, and investments in: <br />227 <br />228 An index mutual fund based in the United States and indexed to a broad market United <br />229 States equity index; or <br />230 With the Minnesota State Board of Investment subject to such terms and minimum <br />231 amounts as may be adopted by the board. These investments are handled through <br />232 PERA. <br />233 Investment in an index fund shall be a broadly based mutual fund. The index fund shall <br />234 have fees of no more than 1% per year of invested assets, and no more than 15% <br />235 turnover per year. Index mutual fund investments must be made directly with the main <br />236 sales office of the fund. Once the amount invested reaches 15% of the sum of <br />237 unassigned cash, cash equivalents, deposits, and investments, no further funds may be <br />238 invested in equities. However the Finance Director is authorized to manage the funds <br />239 previously invested in equities even if the total exceeds the investment parameter <br />240 limitation. <br />241 <br />Page 7 of 8 <br /> <br />