HomeMy WebLinkAbout03.a. BP 005 Statement of InvestmentNumber: BP 005
Related Admin. Procedure AP 005
Authority: Board of Directors
Effective:. September 1, 2011
Revised: September 4, 2014
Initiating Dept. /Div.: Finance
BOARD POLICY
3:A.
Central Contra C051lu
Sanitary District
STATEMENT OF INVESTMENT POLICY
PURPOSE
The investment policy of the Central Contra Costa Sanitary District governs the District's
temporary investments. A separate investment policy governs the District's GASB A5
Trust. This investment pelieyis embodied iR the felleWiRg eleven seGtiens:
POLICY
Statement of Objectives
The temporary investment portfolio of the District will be managed to ensure
that normal cash needs, as well as scheduled extraordinary cash needs can
be met. Therefore, adequate liquidity will be the first priority. Second priority
will be the safety of the portfolio ensuring that the investments could be
readily converted to cash if needed without causing a material change in the
value of the portfolio. Lastly, the portfolio will be invested to attain a market
average rate of return, after meeting the first two previously stated objectives,
II. Permissible Investments
Within the constraints prescribed by the Government Code of the State of
California for permissible investments, the District's investment portfolio will
only be invested in the following instruments:
United States Treasury Bills and Notes, and obligations of government
agencies for which the full faith and credit of the United States are
pledged.
• Bankers Acceptances, drawn on and accepted by a commercial bank,
which are eligible for purchase by the Federal Reserve System.
Number: BP 005
STATEMENT OF INVESTMENT POLICY
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• Collateralized Certificates of Deposit issued by a Federal or State
chartered bank or a Federal or State chartered savings and loan
association.
• Negotiable Certificates of Deposit issued by a Federal or State chartered
bank or a Federal or State chartered savings and loan association.
• Commercial Paper of prime quality limited to corporations with assets over
$500,000,000.
• Medium Term Notes of a maximum of five years maturity issued by U. S.
corporations or any Federal or State depository institution.
• Local Agency Investment Fund of the State of California.
Jill. Banks, -and- Dealers, and Asset Management Companies
The District will use the services of the Treasurer's Office of the County of
Contra Costa which will transact the District's investment decisions in
compliance with the requirements described in this investment policy. The
County Treasurer's Office will execute the District's investments through such
brokers, dealers and financial institutions as are approved by the County
Treasurer, and through the State Treasurer's Office for investment in the
Local Agency Investment Fund. The General Manager also has the
discretion to obtain a professional independent asset management company
that may be used for investment advisory, management and consulting as
needed.
IV. Maturities
The maximum maturity for investments of the District is one year. Prior
approval of the Board of Directors must be obtained to acquire investments
with maturities beyond one year. However, investments in Treasury Notes
and the Local Agency Investment Fund would not be subject to the one -year
maximum maturity.
V. Diversification
To minimize the risk of loss through default, the total amount invested in a
single issuer will not be greater than 10 percent of the District's investment
portfolio value, except that the 10 percent limitation will not apply to United
States Treasury Bills and Notes and investment in the Local Agency
Investment Fund.
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STATEMENT OF INVESTMENT POLICY
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Vl. Risk
Credit and market risks will be minimized through adherence to the list of
permissible investments, a limit on maximum maturities, and the limitation on
the total investment in a single issuer.
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Number: BP 005
STATEMENT OF INVESTMENT POLICY
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