Limit Limit Money Market Accounts 7% 7% Certificates of Deposit 50% 10% U.S. Government Securities 100% 100% U.S. Agency Securities 80% 40% Municipal Securities 20% 5% Repurchase Agreements 8% 8% Investment Pools 100% 40% Money Market Mutual Funds 15% 5% Mutual Funds 15% 5% Commercial Paper 30% 5% Corporate Bonds 15% 5% The District will not invest 100% of its portfolio in any single Investment Pool. If Investment Pools are the only investment type then the money should be subdivided between various pools for diversification and security reasons. Investments in any pool will be limited to 25% of the average Net Asset Value of that pool. In the event of a disruption in the financial markets asset mix requirements may be temporarily suspended. A decision made by the concurrence of the investment officers to suspend asset mix requirements shall be reported within one day to the Board of Education. An update shall be prepared weekly for the Board of Education until such time that asset mix requirements are reinstated. District limits on Corporate Bonds are further limited by calculating the 15% limit exclusive of bond proceed funds and debt service funds and by limiting exposure to no more than 25% of the corporate bond class by any single issuer. The investment portfolio shall be diversified to eliminate the risk of loss resulting from over concentration of assets in a specific maturity, a specific issue, or a specific class of securities. In establishing specific diversification strategies, the following general policies and constraints shall apply: - Within the cash flow requirement constraints, investment maturities shall be staggered in a way that avoids undue concentration of assets in a specific maturity sector. Maturities shall be selected which provide stability of income and reasonable liquidity. - Liquidity shall be ensured through practices to ensure that the payroll account and the operating account are covered through maturing investments. Risks of market price volatility shall be controlled through maturity diversification. The District limits exposure to interest rate risk through maturity diversification. The District will utilize a combination of Weighted Average Maturity and Duration analysis for monitoring of interest rate risk.
Limit Limit Money Market Accounts 7% 7% Certificates of Deposit 50% 10% U.S. Government Securities 100% 100% U.S. Agency Securities 80% 40% Municipal Securities 20% 5% Repurchase Agreements 8% 8% Investment Pools 100% 40% Money Market Mutual Funds 15% 5% Mutual Funds 15% 5% Commercial Paper 30% 5% Corporate Bonds 15% 5% The District will not invest 100% of its portfolio in any single Investment Pool. If Investment Pools are the only investment type then the money should be subdivided between various pools for diversification and security reasons. Investments in any pool will be limited to 25% of the average Net Asset Value of that pool. In the event of a disruption in the financial markets asset mix requirements may be temporarily suspended. A decision made by the concurrence of the investment officers to suspend asset mix requirements shall be reported within one day to the Board of Education. An update shall be prepared weekly for the Board of Education until such time that asset mix requirements are reinstated. District limits on Corporate Bonds are further limited by calculating the 15% limit exclusive of bond proceed funds and debt service funds and by limiting exposure to no more than 25% of the corporate bond class by any single issuer. The investment portfolio shall be diversified to eliminate the risk of loss resulting from over concentration of assets in a specific maturity, a specific issue, or a specific class of securities. In establishing specific diversification strategies, the following general policies and constraints shall apply: - Within the cash flow requirement constraints, investment maturities shall be staggered in a way that avoids undue concentration of assets in a specific maturity sector. Maturities shall be selected which provide stability of income and reasonable liquidity. - Liquidity shall be ensured through practices to ensure that the payroll account and the operating account are covered through maturing investments. Risks of market price volatility shall be controlled through maturity diversification. The District limits exposure to interest rate risk through maturity diversification. The District will utilize a combination of Weighted Average Maturity and Duration analysis for monitoring of interest rate risk.