HomeMy WebLinkAboutSlide Show Investment Policy 2020City of Rexburg
Investments
A REVIEW OF THE INVESTMENTS AND THE INVESTMENT
POLICIES OF THE CITY OF REXBURG
Cash and Investment Relationships
•Zions: Cash Management and
Managed Investments
•Moreton: Managed Investments
•TVI: Brokered Investments
•State of Idaho: Investment Pools
•Local Banks and Credit Unions:
Certificates of Deposit
Zions, 6,450,920
Moreton,
5,381,283
TVI, 3,109,378
Idaho State
Treasurer,
14,546,470
Local Banks &
Credit Unions,
1,510,545
Others,
1,469,670
Portfolio Parameters Recommendation
•Worked with Investment
Managers and Brokers to
develop recommendations
•Also compared to other cities
•Corporate Bonds to have an A
rating or above.
•Money Market Mutual Funds to
be 20% uncollateralized or
100% collateralized
Investments Current Recommended
US Treasuries 100%100%
US Agencies 60%100%
LGIP 60%100%
CD’s 40%100%
Muni/State
Bonds 60%60%
Money Market
MF 20%20%U-100%C
Corp. Bonds 20%25%
Recommended Changes
•Under Credit Risk, point iv. To change language to,
“If deposits exceed these limits, the City Treasurer and designated staff
should take appropriate steps to ensure that City funds are not exposed
to loss of principal due to bank failure. “
•Under Yield, point 1. To change language to,
“In order to evaluate performance, the financial management team will
use appropriate benchmarks at their discretion. “
•Under Suitable and Authorized Investments, point 18. To change
language to,
“an A rating or higher by two ratings agencies such as Moody’s, S&P,
and Fitch. In the event an issuer of a corporate bond held in the
portfolio is downgraded to a lower credit rating with moderate risk (I.e.
Fitch Rating BBB, S&P Rating BBB, and Moody’s Baa2) by two of the
three aforementioned ratings agencies, the security should be
liquidated in a timely manner. “
•Under Investment Depositories/Institutions and Authorized
Financial Dealers, Line A, point 1.To change language to ,
“ Financial Industry Regulatory Authority (FINRA) “
•Under Investment Committee, change language to,
“…may not need to meet if investment performance is reviewed on a
monthly or quarterly basis with the full City Council in council
meetings.”
•Under Investment Committee, change language to,
“Periodically”
Under Reporting and Review, point G. To remove language under point
G.
“ comparison to the benchmark set forth in this policy.”
•Under Deputy Treasurer, point iv. To include language,
“ (unless investment managers have already provided statements
providing the data)”
and to change language of point 7 found under point iv,
“ Stated interest rate”
•Under Investment Committee, point i. Change language to,
“May”
•Under Investment Committee, point ii. Change language to,
“periodically”
Staff Recommendation
•Staff Recommends a motion from Council to adopt Updated
Investment Policy Resolution 2020-19 and make changes effective
immediately.