1999 AGN JUL 06 I20 - Laserfiche WebLink

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INVESTMENT POLICY OF THE CITY OF COLTON L Policy Statement The purpose of this Statement of Investment Policy is to provide governing guidelines for the City of Colton for prudent cash management and investment of public funds until such time as the funds are needed to pay the obligations of the City. II. Investment Objective . In accordance with Government Code Section 53600.3 the Treasurer is a trustee and therefore a fiduciary subject to the prudent investor standard. In accordance with section 53600.5 "the primary obective of a trustee shall be to safeguard the principal of the funds under its control . The secondary ojective shall be to meet liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its control. I, the Treasurer, shall govern investment activities pursuant to the "prudent man rule" as defined in Section 2261 of the California Civil Code and as applied to the investment portfolio as a whole. The investment principle stated here is that in: "...investing ... property for the benefit of another, a trustee shall exercise the judgment and care, under the circumstances then prevailing, which men of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable return of their capital..."