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San Leandro Investment Policy Statement Page 3 of 13 <br />The City may engage the services of one or more external investment managers to <br />assist in the management of the City's investment portfolio in a manner consistent with <br />the City's objectives. Such managers must be registered under the Investment Advisers <br />Act of 1940. <br />IV. Investment Objectives <br />1. Safety: Safety of principal is the foremost objective of the investment <br />program. Investments shall be undertaken in a manner that seeks to ensure <br />the preservation of capital in the overall portfolio. The objective will be to <br />mitigate credit risk and interest rate risk. <br />2. Liquidity: The investment portfolio shall remain sufficiently liquid to meet all <br />operating requirements that may be reasonably anticipated. <br />3. Yield: The investment portfolio shall be designed with the objective of <br />attaining a market rate of return throughout budgetary and economic cycles, <br />taking into account the investment risk constraints for safety and liquidity <br />needs. Return on investment is of least importance compared to the safety <br />and liquidity of the City's assets as described above. <br />V. Investment Criteria <br />The City invests its funds in accordance with the following criteria: <br />1. Insure that funds not needed for current City obligations are <br />fully invested at all times. <br />2. Insure that yield- restricted funds are monitored to ensure <br />compliance with federal arbitrage rebate requirements. <br />3. Insure that the specific requirements outlined in the Bond <br />Indentures of Trust are maintained. <br />VI. Ethics and Conflicts of Interest <br />Officers and employees involved in the investment process will refrain from personal <br />business activity that would conflict with the proper execution of the investment <br />program, or would impair their ability to make impartial investment decisions. <br />Employees and investment officials will disclose to the Finance Director any material <br />interests in financial institutions that conduct business with the City of San Leandro. <br />Furthermore, they will disclose any personal financial /investment positions that could be <br />related to the financial performance of the City, particularly at the time of investment <br />purchases and sales. Investment officers and employees who fail to comply with this <br />disclosure requirement will be subject to administrative action. <br />