11B Consent - Laserfiche WebLink

Home

San Leandro Investment Policy Statement Page 7 of 18 Other Investment Pools – The City will conduct a thorough investigation of investment pools prior to making an investment. To become eligible, an investment pool will provide the following information to the City: • A description of eligible securities and a written statement of investment policy and objectives. • A description of interest calculation methods, how interest is distributed, and how gains and losses are treated. • A description of safekeeping procedures and settlement processes, how often securities are priced, and how often the program is audited. • A description of who are eligible to invest in the program and how often, and any limitations on deposits and/or withdrawals. • A schedule for receiving statements and portfolio listings. • Any policies regarding the use of reserves or retained earnings by the pool. • A fee schedule and a description of how and when fees are assessed. • Any policies regarding the pool’s eligibility for bond proceeds if applicable. Securities Issued by the City of San Leandro and its Agencies. The City may elect to sell or purchase its securities through secondary markets when conditions are favorable. Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations, provided that: • The securities are rated “AA” or higher by a NRSRO. • No more than 20% of the total portfolio may be invested in these securities. • No more than 5% of the portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer. There is no issuer limitation on any Mortgage security where the issuer is the US Treasury or a Federal Agency/Government-sponsored Enterprise (GSE). • The maximum legal final maturity does not exceed five (5) years. Supranational Securities, provided that: • Issues are unsubordinated obligations issued by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IADB). • The securities are rated “AA” or higher by a national recognized statistical rating organization. • No more than 30% of the total portfolio may be invested in these securities. • No more than 10% of the portfolio per issuer. • The maximum maturity does not exceed 5 years. See Appendix A City of San Leandro Summary of Eligible Investments on pages 9, 10 and 11 for a tabular listing of the restrictions regarding authorized investments. IX. Credit Downgrade If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken: