HomeMy WebLinkAboutSlide Show Investment Policy 2020 (2)City of Rexburg Investments
A review of the investments and the investment policies of the City of RExburg
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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
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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
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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.
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Under Yield, point 1. To change language to,
“In order to evaluate performance, the financial management team will use appropriate benchmarks at their discretion. “
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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.
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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.”
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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.”
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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”
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Under Investment Committee, point ii. Change language to, “periodically”
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Staff Recommendation
Staff Recommends a motion from Council to adopt Updated Investment Policy Resolution 2020-19 and make changes effective immediately.
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