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II. <br /> <br />CITY OF UNIVERSITY CITY <br /> <br />INVESTMENT POLICY <br /> <br />Scope <br />This policy applies to the investment of all operating funds of the City of University City/ <br />General Fund. Longer-term funds, including investments of employees' retirement funds <br />and proceeds from certain bond issues, are covered by a separate policy. <br /> <br />Pooling of Funds <br />Except for cash in certain restricted and special funds, the City of University City/ <br />General Fund will consolidate cash balances from all funds to maximize <br />investment earnings. Investment income will be allocated to the various funds <br />based on their respective participation and in accordance with generally accepted <br />accounting principles. <br /> <br />External Management of Funds <br />Investment through external programs, facilities and professionals operating in a <br />manner consistent with this policy will constitute compliance. <br /> <br />General Objectives <br />The primary objectives, in priority order, of investment activities shall be safety, liquidity <br />zu~d yield: <br /> <br />Safety <br />Safety of principal is the foremost objective of the investment progrm~. <br />Investments shall be undertaken in a manner that seeks to ensure the preservation <br />of capital in the overall portfolio. The objective will be to mitigate credit risk and <br />interest rate risk. <br /> <br />Credit Risk <br />The City of University City/General Fund will minimize credit risk, <br />the risk of loss due to the failure of the security issuer or backer, by: <br /> <br />Pre-qualifying the financial institutions, brokers/dealers, <br />intermediaries, mad advisors with which the City of University <br />City/General Fund will do business. <br />Diversifying the portfolio so that potential losses on individual <br />securities will be minirnized. <br /> <br /> <br />