Pre-qualifying and maintaining a list of the financial institutions, broker/dealers, intermediaries, and advisers with whom The Town of Glenrock will do business. Diversifying the investment portfolio so that the impact of the potential losses from any one type of security of from any on individual issuer will be minimized. Interest Rate Risk The Town of Glenrock will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by: Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity Investing operating funds primarily in shorter term securities, or WYOSTAR and limiting the duration of the portfolio in accordance with this policy. 2. Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual funds or WYOSTAR which offer same day liquidity for short-term funds. The Town of Glenrock will not directly invest in securities maturing more than five (5) years from the date of settlement in accordance with state law. 3. Yield (Return on investment) The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions: A security with declining credit may be sold early to minimize loss of principal. A security swap would improve the quality, yield, or target duration in the portfolio. Liquidity needs of the portfolio require that the security be sold. Investment Committee: In order to facilitate direct communication to the Council, the Town of Glenrock Finance Committee shall be established. The Committee shall be composed of: The Mayor The Town Treasurer Two Council Members
Pre-qualifying and maintaining a list of the financial institutions, broker/dealers, intermediaries, and advisers with whom The Town of Glenrock will do business. Diversifying the investment portfolio so that the impact of the potential losses from any one type of security of from any on individual issuer will be minimized. Interest Rate Risk The Town of Glenrock will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by: Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity Investing operating funds primarily in shorter term securities, or WYOSTAR and limiting the duration of the portfolio in accordance with this policy. 2. Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual funds or WYOSTAR which offer same day liquidity for short-term funds. The Town of Glenrock will not directly invest in securities maturing more than five (5) years from the date of settlement in accordance with state law. 3. Yield (Return on investment) The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions: A security with declining credit may be sold early to minimize loss of principal. A security swap would improve the quality, yield, or target duration in the portfolio. Liquidity needs of the portfolio require that the security be sold. Investment Committee: In order to facilitate direct communication to the Council, the Town of Glenrock Finance Committee shall be established. The Committee shall be composed of: The Mayor The Town Treasurer Two Council Members