Laserfiche WebLink
INVEST POLICY OF THE CITY OF COTWON <br />Q„_, ' <br />I. Policv Statement <br />The purpose of this Statement of Investment Policy is to <br />prcvidle governing guidelines for prudent cash management and <br />investment of public funds until such time as the funds are <br />nee dedl to pay the obligations of the City. <br />II. Investment Objective <br />The ultimate objective of the Treasurer's investment program <br />is to achieve a reasonable rate of return on the portfolio <br />consistent with short-term interest rates, after having <br />given primary consideration to safety, preservation of <br />capital and liquidity sufficient to meet daily cash flow <br />needs. The priority of these factors in making investments <br />arc:: <br />(1) Safety and preservation of capital <br />(2) Liquidity <br />(3) Yield <br />I., the Treasurer, shall govern investment activities <br />pursuant to the "prudent man rule" as defined in Section <br />22E1 of the California Civil Code and as applied to the <br />investment portfolio as a whole. The investment principle <br />stated here is that in: <br />"... investing ... property for the benefit of <br />another, a trustee shall exercise the <br />judgement and care, under the circumstances <br />then. prevailing, which men of prudence, <br />discretion and intelligence exercise in the <br />management of their own affairs, not in <br />regard to speculation, but in regard to the <br />permanent disposition of their funds, <br />considering the probable income, as well as <br />the probable return of their capital..." <br />5 <br />1 <br />