Laserfiche WebLink
City of Tukwila My WebLink |HelpSearch Tips |About |Sign Out
Liquidity funds will be defined as those funds that are in the State LGIP City, bank <br />deposits, bank certificates of deposits or money market instruments and will be <br />available for immediate use. <br />ii. Investment Core Funds — Tier 2 <br />Investment funds will be defined as the funds in excess of liquidity requirements and <br />invested in authorized investments and maturity structure listed below. <br />iii. Total Portfolio Maturity Constraints: <br />Maturity Constraints <br />Minimum % of <br />Total Portfolio <br />Under 30 days <br />10% <br />Under 1 year <br />25% <br />Under 5 years <br />90% <br />Under 10 years <br />100% <br />Maturity Constraints <br />Total Portfolio <br />Maximum <br />Weighted Average Maturity <br />2.0 years <br />Duration of Corporate Note Portfolio <br />3.0 years <br />Security Structure Constraint <br />Maximum % of <br />Total Portfolio <br />Callable Agency Securities <br />25% <br />C. Strategic Philosophy <br />The primary investment philosophy of the City is to match investment maturities with <br />expected cash outflows. Securities shall generally be held until maturity, with the following <br />exceptions: <br />i. A security with a declining credit may be sold early to protect the principal value <br />of the portfolio. <br />ii. The portfolio duration or maturity buckets should be adjusted to better reflect <br />the structure of the underlying benchmark portfolio. <br />iii. A security exchange that would improve the quality, yield and target maturity <br />of the portfolio based on market conditions. <br />iv. A sell of a security to provide for unforeseen liquidity needs. <br />City of Tukwila Investment Policy 2025 Page 13 of 18 <br />17 <br />