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4.1 Safety: Safety of principal is the foremost objective of the investment program. <br /> Investments of the City of Everett will be undertaken in a manner that seeks to <br /> ensure the preservation of capital in the overall portfolio. To obtain this <br /> objective, diversification is required so that potential losses on individual <br /> securities do not exceed the income generated from the remainder of the <br /> portfolio. <br /> 4.2 Liquidity: The City's investment portfolio will remain sufficiently liquid to enable <br /> the City to meet all cash requirements that might be reasonably anticipated. <br /> This is accomplished by structuring the portfolio so that securities mature or <br /> funds can be readily accessed concurrent with cash needs to meet anticipated <br /> demands. Furthermore, since all possible cash demands cannot be <br /> anticipated, the portfolio should consist largely of securities with active <br /> secondary or resale markets. <br /> 4.3 Return on Investment The investment portfolio shall be designed with the <br /> objective of attaining a market rate of return throughout budgetary and <br /> economic cycles, taking into account the City's investment risk constraints and <br /> liquidity needs. Return on investments is of secondary importance compared to <br /> the safety and liquidity objectives described above. The core of investments is <br /> limited to relatively low risk securities in anticipation of earning a fair rate of <br /> return relative to the risk being assumed. <br /> Securities shall generally be held until maturity unless: <br /> • a security exchange would improve the quality, yield, or target duration <br /> of the portfolio; <br /> • a security with declining credit may be sold prior to maturity to minimize <br /> the loss of principal; or <br /> • liquidity needs of the portfolio require that the security be sold early. <br /> 5.0 Delegation of Authority <br /> 5.1 Investment Committee: The Investment Committee will be responsible for <br /> providing oversight to ensure that compliance is maintained with this policy and <br /> established internal controls, and for determining the overall strategy for the <br /> investment program. <br /> 5.1.1 The Investment Committee shall be composed of three members: the <br /> Chief Financial Officer, the Treasurer, and one other senior member of <br /> the Finance Department as determined by the Chief Financial Officer. <br /> 3 I City of Everett Investment Policy(2017) <br />