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WH(N o GENERAL MANAGER Jim Friedl DATE: March 5. 2015 TO: Board of Directors FROM: Jim Friedl, General Manaey SUBJECT: Re -adoption of Investmen RECOMMENDATION BOARD OF DIRECTORS Ed Jones, Chair Chuck Huffer, Vice Chair George Lange, Director Susan L. Holt, Director Joe Gibson, Director GENERAL MANAGER EMERITUS Tex Ward It is recommended that the Board of Directors adopt the District's investment policy. DISCUSSION Government Code requires the Board to annually authorize the delegation of investment authority, which is best accomplished by reviewing the District's investment policy. The attached policy was last adopted on March 6, 2014. The policy is conservative, providing for investment in short term debt instruments and government protected bank instruments. The policy does not allow for more speculative investments such as stocks, mutual funds, corporate bonds, or other corporate securities that trade in the national financial markets. This conservative approach results in lower earnings than more speculative investments, but provides a higher degree of safety and liquidity. Of the three major components in an investment policy, these two take precedent over the third, which is rate of return. Note that over 98% of District cash assets are invested at all times. Essentially, there are no idle funds or funds not earning interest. Maximizing the amount of funds invested helps offset lower earnings that accrue from more conservative investments. The District invests with the Ventura County Investment Pool and the State of California Investment Pool (LAIF). The investment policies of both the State of California and Ventura County limit their pool investments to the same type of investment vehicles contained in the District policy. These policies have previously been shared with the Board. 403 West Hillcrest Drive I Thousand Oaks, CA 91360-4223 (805) 495-6471 FAX: (805) 497-3199 Email: parks@crpd.org