Sarasota County Investment Policy 2018

Sarasota County Investment Policy 5 B. MAINTENANCE OF ADEQUATE LIQUIDITY The investment portfolio must be structured in such a manner that will provide sufficient liquidity to pay obligations as they become due. Specific policies describing the manner in which adequate liquidity is maintained are described in Section III B of these Policies. C. RETURN ON INVESTMENTS The County seeks to optimize return on investments within the constraints of safety and liquidity. The investment portfolio shall be designed with the annual objective of exceeding the average return on the corresponding treasury maturity (yearly rolling average), based on the portfolio’s average duration. D. PRUDENCE AND ETHICAL STANDARDS Investment officials shall utilize the Prudent Person Rule as defined by Florida State Statute 218.415(4) in the context of managing the overall investment portfolio. The Prudent Person Rule is herewith understood to mean the following: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived from the investment." Investment officials, or persons performing investment functions, acting in accordance with written policies and procedures, and exercising due diligence shall be relieved of personal liability for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. III. INVESTMENT POLICIES A. POLICIES TO ENSURE SAFETY OF CAPITAL The following policies are set forth below to provide additional guidance in implementing the first investment objective, safety of capital. 1. Reducing Credit Risk a. Acceptable Investments Legally authorized investments were set forth above in Section I, A. The following is an expansion of that list, including additional restrictions: i. U.S. Treasury Obligations (including but not limited to): U.S. Treasury Bills U.S. Treasury Notes U.S. Treasury Bonds