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11. Reporting Requirements <br />A. Reporting <br />The Finance Director or designee shall be responsible for investment reporting. At a <br />minimum, monthly reporting (RCW 35.39.032) shall be made available providing detailed <br />information on the investment portfolio. <br />Specific Requirements: <br />• Book Yield <br />• Holdings Report including mark to market and security description <br />• Transactions Report <br />• Weighted Average Maturity or Duration <br />B. Performance Standards/Evaluation <br />i. The portfolio shall be managed to obtain a fair rate of return and earnings rate that <br />incorporates the primary objectives of protecting the City's capital and assuring <br />adequate liquidity to meet cash flow needs. <br />ii. The investment portfolio will be invested into a predetermined structure that will be <br />measured against a selected benchmark portfolio. The structure will be based upon a <br />chosen minimum and maximum duration (average maturity) and will have the objective <br />to achieve market rates of returns over long investment horizons. The purpose of a <br />benchmark is to appropriately manage the risk in the portfolio through interest rate <br />cycles. The investment portfolio is expected to provide similar returns to the <br />benchmark over interest rate cycles but may underperform or outperform in certain <br />periods. The portfolio will be positioned to first protect principal and then achieve <br />market rates of return. The benchmark used will be the US treasury 0-3-year index or <br />US treasury 0-5-year index and comparisons will be calculated monthly and reported <br />quarterly. <br />iii. The liquidity component yield will be compared quarterly to the LGIP average yield. <br />C. Compliance Report <br />A quarterly compliance report will be generated comparing the portfolio positions to this <br />investment policy. <br />The Investment Policy sets forth concentration constraints and minimum credit ratings for <br />each type of security. These limits apply to the initial purchase of a security and do not <br />automatically trigger the sale of a security as the portfolio value fluctuates or in the event <br />of credit rating downgrade. Due to fluctuations in the aggregate surplus funds balance, <br />maximum percentages for a particular issuer or investment type may be exceeded at a <br />point in time. Securities need not be liquidated to realign the portfolio; however, <br />consideration should be given to this matter when future purchases are made to ensure <br />that appropriate diversification is maintained. <br />City of Tukwila Investment Policy 2025 Page 14 of 18 <br />18 <br />