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GENERAL MANAGER <br />Jim Friedl <br />DATE: <br />TO: <br />FROM: <br />SUBJECT: <br />Conejo Recreation ;ParkDistrict <br />March 6, 2014 <br />Board of Directors <br />Jim Friedl, General Manager <br />Re -adoption of Investment Policy <br />RECOMMENDATION <br />BOARD OF DIRECTORS <br />Joe Gibson, Chair <br />Ed Jones, Vice Chair <br />George Lange, Director <br />Susan L. Holt, Director <br />Chuck Huffer, Director <br />GENERAL MANAGER EMERITUS <br />Tex Ward <br />It is recommended that the Board of Directors adopt the District's investment policy. <br />DISCUSSION <br />Government Code requires the Board to annually authorize the delegation of investment <br />authority, which is best accomplished by reviewing the District's investment policy. The <br />attached policy was last adopted on February 28, 2013. <br />The policy is conservative, providing for investment in short term debt instruments and <br />government protected bank instruments. The policy does not allow for more speculative <br />investments such as stocks, mutual funds, corporate bonds, or other corporate securities <br />that trade in the national financial markets. <br />This conservative approach results in lower earnings than more speculative investments, <br />but provides a higher degree of safety and liquidity. Of the three major components in an <br />investment policy, these two take precedent over the third, which is rate of return. <br />Note that over 98% of District cash assets are invested at all times. Essentially, there are <br />no idle funds or funds not earning interest. Maximizing the amount of funds invested helps <br />offset lower earnings that accrue from more conservative investments. <br />The District invests with the Ventura County Investment Pool and the State of California <br />Investment Pool (LAIF). The investment policies of both the State of California and <br />Ventura County limit their pool investments to the same type of investment vehicles <br />contained in the District policy. These policies have previously been shared with the <br />Board. <br />The rate of return for the Ventura County Investment Pool is now higher than the rate of <br />return for State Investment Pool (LAIF). Thus, the majority of District funds are being held <br />403 West Hillcrest Drive I Thousand Oaks, CA 91360-4223 <br />(805) 495-6471 FAX: (805) 497-3199 Email: parks@crpd.org <br />