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2. <br /> acting in accordance with the City's Investment Policy, and <br /> established written procedures the investment policy and <br /> exercising due diligence.-e •- e- e shall <br /> be relieved of personal responsibility for an individual security's <br /> credit risk or market price change, provided deviations from <br /> expectations are reported and efforts are made to control <br /> adverse developments •e '.e _ .- . - -_ <br /> 4.1 Objectives. The primary objectives, in priority order, of the City's <br /> investment activities shall be as follows: <br /> 4.2 Safety. Safety of principal is the foremost objective of the <br /> investment program. Investments of the City o f <br /> E v e re tt investments wills#al-I be undertaken in aconscrvat ric <br /> manner that seeks to ensure the preservation of the portfolio's <br /> capital in the overall portfolio. To obtain this objective, diversification <br /> is required so that potential losses on individual securities do not <br /> exceed the income generated from the remainder of the portfolio.. <br /> 4.3 Liquidity. The City's investment portfolio will remain sufficiently <br /> liquid to enable the City to meet all cashoperating requirements <br /> that might be reasonably anticipated. This is accomplished by <br /> structuring the portfolio so that securities mature or funds can <br /> be readily accessed concurrent with cash needs to meet <br /> anticipated demands. Furthermore, since all possible cash <br /> demands cannot be anticipated, the portfolio should consist <br /> largely of securities with active secondary or resale markets. <br /> 4.4 Return on Investment. The City's investment portfolio shall be <br /> designed with the objective of attaining a market rate of return <br /> throughout budgetary and economic cycles, taking into account the <br /> City's investment risk constraints and liquidity needs the cash <br /> flow characteristics of the portfolio. Return on investments is of <br /> secondary importance compared to the safety and liquidity objectives <br /> described above. The core of investments is limited to relatively low <br /> risk securities in anticipation of earning a fair rate of return relative to <br /> the risk being assumed. <br /> • Securities shall generally be held until maturity unless: <br /> • A security exchange would improve the quality, yield, or <br /> target duration of the portfolio; <br /> • A security with declining credit may be sold prior to maturity <br /> to minimize the loss of principal; or <br /> • Liquidity needs of the portfolio require that the security be <br /> sold early. <br /> 4.4- <br /> '1.5 Social Policvs_an✓estmcnt decisions shall further the City's social <br /> . <br /> 9:07AM ;0 <br />