Title
A resolution approving the City's Investment Policy
Body
From:
Kara Skinner, Chief Financial Officer
Summary:
With the advice of the City's investment advisors and the City's Investment Advisory Committee (IAC), the City Finance Department has proposed modifications to the City's Investment Policy for City Council's consideration. The attached policy replaces the previously developed and approved policy.
Previous Council Action:
City Council adopted the City's original Investment Policy by resolution on September 28, 1993. The policy has since been revised and approved by City Council on November 8, 1994; February 27, 1996; October 8, 1996; October 26, 1999; February 12, 2002; March 9, 2004; May 24, 2005; July 11, 2006; April 24, 2007; June 25, 2008; May 26, 2009; May 25, 2010; November 22, 2011, and December 10, 2013.
Background:
The Investment Policy is reviewed on an annual basis by Finance Department staff in conjunction with the City's Investment Advisors. The attached policy reflects changes to incorporate recommendations approved by the Investment Advisory Committee.
AUTHORIZED SECURITIES AND TRANSACTIONS:
Federal Agency and Instrumentality Securities
Expanded description to authorize certain AAA rated Supranationals, including the World Bank. These high rated securities are currently allowed under Colorado State Statute and the changes proposed here will bring the City's policy into alignment with State Statute.
Corporate Bonds
Expanded description to include investment in dollar denominated securities issued by corporations or banks organized and operated within Canada or Australia. These securities must comply with the same rating, maturity and diversification guidelines mandated for domestic corporate bonds. To control credit exposure and promote diversification, these corporate bonds are restricted to no more than five percent per country. The economies of Canada and Australia are large ...
Click here for full text