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this objective, diversification is required in order that losses on <br />individual securities do not exceed the income generated from the <br />remainder of the portfolio. <br /> <br />4.4.2 <br /> <br />Liquidity: The investment portfolio will remain sufficiently liquid <br />to enable the City to meet all operating requirements that might be <br />reasonably anticipated. <br /> <br />4.4.3 <br /> <br />Return on Investment: The investment portfolio shall be designed <br />with the objective of attaining a market rate of return throughout <br />budgetary and economic cycles. The investment strategy will take <br />into account the constraints on risk and cash flow characteristics of <br />the investment portfolio. <br /> <br />4.4.4 <br /> <br />Maintaining the Public's Trust: All officials and employees who <br />are part of the investment process shall seek to act responsibly as <br />custodians of the public trust. Investment officials shall avoid any <br />transaction that might impair public confidence in the <br />municipality's ability to govern effectively. <br /> <br />4.5 <br /> <br />Authority to manage the investment program is derived from the <br />following: Minnesota Statutes § 118A. Management responsibility for the <br />investment program is hereby delegated to the Finance Director. No <br />person may engage in an investment transaction except as provided under <br />the terms of this policy and the procedures established by the Finance <br />Director. The Finance Director shall be responsible for all transactions <br />undertaken and shall establish a system of controls to regulate the <br />activities of subordinate officials. <br /> <br />4.6 <br /> <br />Officers and employees involved in the investment process shall refrain <br />from personal business activity that could conflict with the investment <br />program, or which could reasonably cause others to question or doubt their <br />ability to make impartial investment decisions. Employees and investment <br />officials shall disclose to the Finance Director any material financial <br />interests in financial institutions that conduct business within this <br />jurisdiction, and they shall further disclose any large personal <br />financial/investment positions that could be related to the performance of <br />the portfolio. <br /> <br />4.7 <br /> <br />The Finance Director will maintain a list of financial institutions <br />authorized to provide investment services. In addition, a list will be <br />maintained of approved security broker/dealers selected by credit <br />worthiness, who maintain an office in the State of Minnesota. These may <br />include "primary dealers" or regional dealers that qualify under Securities <br />& Exchange Commission Rule 15c3-1 (uniform net capital rule). All <br />brokers doing business with the City shall have a Broker Certification <br />form on file with the Finance Director in accordance with Minnesota <br />Statutes § 118A.04, Subd 9. All investments must be placed with brokers <br /> <br /> <br />