Sarasota County Investment Policy 2018

Sarasota County Investment Policy 21 1991, The Florida Trust is designed to complement existing investment programs by providing investment vehicles for funds that can be invested in short- to intermediate-term securities and have returns generally greater than the national average for money market instruments. The Florida Trust offers two open-ended, professionally managed funds available only to public entities in Florida. 59. FLORIDA MUNICIPAL INVESTMENT TRUST (FMIvT): The FMIvT, administered by the Florida League of Cities, Inc., is an interlocal governmental entity created under the laws of the State of Florida. The FMIVT is an Authorized Investment under Sec. 163.01 Florida Statutes. 60. FLORIDA SECURITY FOR PUBLIC DEPOSITS ACT: Chapter 280, Florida Statutes establishes a statewide “pool” program ensuring the protection from financial institution failure of public deposits of the state and its political subdivisions not covered by federal deposit insurance. All qualified public depositories are required to meet certain collateral requirements established by the Chief Financial Officer of the State of Florida. 61. GENERAL SERVICES ADMINISTRATION (GSA): An independent agency of the United States government, established in 1949 to help manage and support the basic functioning of federal agencies. 62. GOVERNMENT AGENCY SECURITY: “Agencies” is a term used to describe two types of bonds: (1) bonds issued or guaranteed by U.S. federal government agencies; and (2) bonds issued by government sponsored enterprises (GSEs) – corporations created by Congress to foster a public purpose, such as affordable housing. 63. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA/ GINNIE MAE): A wholly owned US Government corporation within the US Department of Housing and Urban Development (HUD). The main focus of Ginnie Mae is to ensure liquidity for US government insured mortgages including those insured by the Federal Housing Administration (FHA), the Veterans Administration (VA) and the Rural Housing Administration (RHA). 64. GOVERNMENT SPONSORED ENTERPRISE (GSE): A member of a group of financial services corporations created by the United States Congress. Their function is to enhance the flow of credit to targeted sectors of the economy and to make those segments of the capital market more efficient and transparent. A GSE benefits from an implicit federal guarantee to enhance its ability to borrow money. GSEs are supervised but not directly manage by the federal government. 65. INTEREST RATE: See “Coupon Rate”. 66. INTEREST RATE RISK: The risk associated with declines or rises in interest rates which cause an investment in a fixed-income security to increase or decrease in value. 67. INTERNAL CONTROLS: An internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. 68. INVERTED YIELD CURVE: A chart formation that illustrates long-term securities having lower yields than short-term securities. This configuration usually occurs during periods of high inflation coupled with low levels of confidence in the economy and a restrictive monetary policy. 69. INVESTMENT: A security or other asset acquired primarily for the purpose of obtaining income or profit.