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San Leandro Investment Policy Statement Page 3 of 18 <br /> <br /> <br /> <br /> <br /> <br />IV. Investment Objectives <br />1. Safety: Safety of principal is the foremost objective of the investment program. <br />Investments shall be undertaken in a manner that seeks to ensure the <br />preservation of capital in the overall portfolio. The objective will be to mitigate <br />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 attaining <br />a market rate of return throughout budgetary and economic cycles, taking into <br />account the investment risk constraints for safety and liquidity needs. Return <br />on investment is of least importance compared to the safety and liquidity of the <br />City’s assets as described above. <br />Other: Investments are to be made that will bear in mind the responsibility of city <br />government to its citizens. Alternative investments which enhance the quality of <br />life will be given full consideration. <br /> <br />V. Investment Criteria <br />The City invests its funds in accordance with the following criteria: <br /> <br />1. Ensure that funds not needed for current City obligations are <br />fully invested. <br />2. Ensure that yield-restricted funds are monitored to ensure <br />compliance with federal arbitrage rebate requirements. <br />3. Ensure that the specific requirements outlined in the Bond <br />Indentures of Trust are maintained. <br /> <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 program <br />or would impair their ability to make impartial investment decisions. Employees and <br />investment officials will disclose to the Finance Director any material interests in financial <br />institutions that conduct business with the City. Furthermore, they will disclose any <br />personal financial/investment positions that could be related to the financial performance <br />of the City, particularly at the time of investment purchases and sales. Investment officers <br />and employees who fail to comply with this disclosure requirement will be subject to <br />administrative action.