City of Plymouth Proposed 2022-2023 Budget - Flipbook - Page 272
APPENDIX A
PORTFOLIO DIVERSIFICATION GUIDELINES
Security Type
Maximum
Issuer
Maximum
U.S. Treasuries
100%
N/A
30-40%
U.S. Agencies &
Instrumentalities
100%
20%
(subset of above)
CD's
Non-negotiable
50%
10%
10-35%
2 years
CD's
Negotiable
50%
10%
(subset of above)
3 years
Municipal
Bonds
50%
10%
0-15%
5 years
Commercial Paper
50%
10%
25-35%
270 days
Bankers
Acceptances
25%
10%
0-15%
184 days
Overnight
2
Deposits
25%
25%
0-15%
1 day
Mutual Funds3
25%
10%
0-15%
3 years
Instrument
Description
Security Type
Range
Maturity
Maximum
5 years1
5 years1
(Date specific
maturities only)
1
Maturity Maximum - the five-year maximum applies to non-enterprise fund investments only. Enterprise fund reserves may be invested in
securities exceeding five (5) years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the
funds.
2
Overnight Deposits - The Finance Director may invest overnight or short-tern liquid assets to cover cash flow requirements in the following
types of pools: Investment Pools organized under the surplus funds investment pool act of 1982, PA 367, MCL 129.111 to
129.118 or Investment Pools organized under the Urban Cooperation Act of 1967, PA7, MCL 124.501 to 124.512.
3
Authority to Purchase Mutual Funds - The Finance Director may invest in no-load fixed income mutual funds composed of investment vehicles,
which are legal for direct investment by local units of government in Michigan, either taxable or tax-exempt. This authorization is limited to
mutual funds whose intent is to maintain a net asset value of $1.00 per share.
INVPOL22
2
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