§ 3.10.110. Diversification and Maximum Maturities.
Latest version.
It is the policy of the District to diversify its investment portfolio. Assets shall
be diversified to eliminate the risk of loss resulting from over-concentration of
assets in a specific maturity, a specific issuer or a specific class of securities.
Diversification strategies shall be determined and revised periodically. Adequate
diversification shall be applied to the individual issuers of debt, both within each
class of investments and collectively. With the exception, of U.S. Treasuries, Federal
Agency securities, LGIPs, and LAIF, the District's investment in any one issuer is
limited to twenty (20) percent of the portfolio.
To the extent possible, the District will attempt to match its investments with anticipated
cash flow requirements. The maximum maturity of individual investments shall not exceed
the limits set forth in Section 3.10.100. Where no maturity limit is stated, no investment shall exceed a maturity of five
(5) years from the date of purchase unless the Board has granted express authority
to make that investment either specifically or as a part of an investment program
approved by the Board no less than three months prior to the investment. With respect
to maximum maturities, this Policy authorizes investing bond reserve funds beyond
five years if the maturity of such investments is made to coincide as nearly as practicable
with the expected use of the funds.
