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Resolution No. 07-26 Adopting Investment Policy
~.R&'1~4A1..tl:!¢~'~4JA\ AYV9 ~d ~X.~ ~ . .. .~ ~e~.~c~~~~a°~~~~ ~~ °rxF c~r~r°v ~o~.~~~~~, ~~ ~°~~~ clr~ e~~~ u~v~v~u~r~r~ ~~~~~, ~r~Jx~s, ~r~+~~~ rA~c~ Tx~~ ~t~~~~ ~~~~~~v°~~ ~c~~~cv ~F rt~~a cz°r~ c~~ ~~~rv~~s~~ ~ ~~ux x~~t~.~ra~ €~~~ ~~c~~ i ~~ ~Y RESCAL~ITIC~N 1'~U.1~~i-16; ~1~~ ~"itC.~'4'IDCN~ A°W~ E~~E~C1 i~l~~ ll~TE. W~~E A.~, t~~: Public ~uj~td:~ InvestinexYt ~~.t, ~s ~rne~~d~:c~,.r~°t~uires t~ie City tc~ acto~~t an invc~tmcnt ~SC~licy l~y rule, ~rd~r, ~rc~a~r~,nee c~r r~;sa~l~~tic~n, a~~~ tc~ r~~rz~ti~ si~ch ~a~licy ~~c~t less than ~n~~z~Mly~ ~n~ V6~~~a1xFA~, the Pu:~~ic ~"~~d~ Inve~tn~Er~~ Act, ~~ arne~c~~tE~ require~;t~~e Trc~a~ure;s•, the ~~ief' Fin~~c:ia1 C3('fzcer, a~d t}~~ Investment E~fficers c~l' thc° C:i~~ t~ ~tticrad invest~~r~t t~~ii~in~; anc~ `VVHE:Et~+a.A~, tha ~ity ~~ Clnivc.rs~ty Park ap~r~sr~~~;s c~~° ~1~~ z~vestz~~ent txaini.n~ c;ourse:~ span~ar~c~ by the "~"e~;~~~ Mixr~icipal Lc;a~~~e arzc~ ~the:r zna~s~pe~~dent ~~~a°~:c~g ax~d ~`~l~ait~~~#,~, t~e Tr~~s~r~:~~ t~7c Chi~f E~inanci~l (~ttrcer, ~~~ci th~ i~xvestment t~}~fficers c~f tl~e ~`ity have atts~n~ed i~ve~tz~ac~~tt irainira~ ec~~~rses a~ rcquir~c~ ~y ~h~ Pu~lic; P~,~n~s Inv~sl~ne~t t'~ct~ ~nc~ WHE1t~,~,S, th~ a~~cht~c~ inves~r~ae~~t pc~liey c~-~nplic~ wXt~ tl~e ~?ubl~e Fund~ Inv~;~lznent .Act, as arnentlec~, an~ a~.ttFac~ri:ees t~€e ~investm~;ni. c~f C'it~ fu~c~s ir~ safe at~c~ ~rudent invc:st~r~ent~; Nc~~~r, Thercfare, ~tE IT RE4(.~~~'~~~,1 I3Y THF ~I-I'Y ~C}UNCIL 4~' 'T~~~ +~I`I°Y (7~' Ul~'~VEK~iTY A ~~\K~q v.E. FJdLd"1Su ~ SEC'TI:(J~` 1. ~l1at t~~ C~ity crf [lniversity ~"a~~ ~~s c~~~plie~i u~it~ th~ requir~;n~e.nts c>f" tk~c~ ~~~b~ic Fun~~ lnv~:strn~,nt ~ct, ~n~ci t~i~ investm~nt .E'~slicy, a~ an~enciLe~, attached l~er~tc~ as ~:xl~ibi~ "~'' i~ l~er~;by adcspted ~s the ~z~ve~t~nent Policy c~~ the City of lt~iversity ~'ark, eff~ctive 1C~~c~n~~er ~, 2U07. SE~"`I"IUl'~ 2. "~h~,t th~ fca1l~~Fia~~; i~-~liv3c~u~l~ ~re 11~~~by ~c~si~X~at~;~ a~ Ira~$estn~ent: C~[fic.ers fc~r ~he ~:ity of Univ~~ity ~~rk: Ku~~t 1~i~.~tir1, I~ir~~;tc~r caf" E~i~a~lce; R~b I.:ivix~~stcar~, City M~e~~~GM°, ~ancl, ThQm~s Tyarc~~rk:, t~c~~trcaller. SEC~ ~"t()~a i. Tl~i~ r~s~l~tic~n s~~all ta~e e~k°G~:~ ti~c~m ~~~ ~ftcr it~ ~assa~e, ~n~ zt is acc+~rd.i~~~ly ~c, rtsc~lvec~. I}C.T~.;"~' ~ASSE~J A~~ .;~~~'I~~VEI} by t~~~ C"it~ ~".~ura~zl c~f'the City ca~~~iversity P~r~, I~x~:~, c~x~ t~e 4~t~ da~ ~1"L~~~~r~~~r, '~~lt~'7. ~~'PRC3VE~.7: ~' III, It+i~ ~.°°~ ' i~~tJ"~ED AS TC~ l+€~1~~ } ~ ~ ~# ~ # ~ ~ ~ ~ ~ ~ € '> ~ ~ ~~ ~ ~ ; ~ ~ ~z. ~ ~~: ;~.~ ~ ~ ~. ~~ ~ ~~~~. ~ ~r~r~ ~~rrrc~~~~~ Ex~ibit ~. ~~ . rsf CTn~verc~t ~ P~r~ Te~~s ~ Inv~~trner~t Pc~li~° r N~~Yr~ry~1.1~ ~ ~~'f:~:~~~ ......................................».........,.....,...,.,...,...,...;.,...;.,.,..................,.,........,...,,......,.. ~ ~. ~~r~~~~~. 1. ~ut1~&~r~i:~~ti~n .< ....................................................................................................1 ?, ~c~~l ..... ...........................................................:........:.........................................1 3. Scca~c,,. . ............................................. ...................................................1 ~. ~e~~~w ~a~d ~4~ner~dn~ent .............. . . ......... . . ....:,.................................,....,,? 2. INV'~J~~"t~~~~f'l` ("~B~~~T'~~~~~ 1. Prc~erv~tie~n ~~~t~ ~~f"~tv ~~°:Pri:ncipal .....................................................................~ ~. NFai~atc~a~r~c~ c~~' ~cl~:~~~t~ Lic~ui~iity .......:... ..:.:...................................................~ 3, E~e~.~rra €~n ~x~v~str~~en~s ................................. . . .................................................~ 4. Pri~~~~~c~ ~~c.~ .E~tl~ic;al. ~tanc~a.rcis .................. ..,......,.,.....,....,..........,.........,.........~ Ns .4.1 9 9~ledl..l'rA.e.LYdA_tl TrJ. ~.F 1Y.~.F A4'A~~ A. ~ a~r~LA.T.EB.:a'd.ST ~, ~~94'.•C~I~1[l~ ~~t1f~S ..... . ............................................................................................J ~, ~~~nd 1~ebt S~a°r~ic:-e ~a~,-~.c~~ ..................................... ........................~.....,...,.,......,4 3, ~3~nd R~:s~rve ~'~r~~~ ....................................:........................................................4 4. (:'a~~ital Pre~,ject~ ~unc[s ..........................................................................................4 ~u ~.9. ~1..~~R'~R.~ ~~~~1'P~~~i'.i~~ JF V~d~1.,~~~ ~.8 1. T:Ii~iblc I~ve~t~rz~~~t~ ........................................ ...,.,.,.......,.....,.,,,,.,...,...,..........4 l. (3bl~p~t~c~n~ ~f t~~ LT~~ited ~t~tes ....... .........................................................5 ~. t~bli~~ti~ns ~f t~e St~te o~ "~~~a~.,.... .,... ....................................................~ 3. ~~a~~~eies c~f t~~ Ux~it~ci Stat~~ ~ncl ~fi:~te c~~ "~"c~x~~ .................................:.....~ ~. (?b1i~~tic~~~ afe~t~~r Stat~s, t~ounti~:~, ~itic~s......,.,.. ....................................5 S. ~ir~ct R:cpu~ehase ~~r~~mt;rs~s ........ .........................................................5 6. C",crt.i~"i~~ie~ ~f :I~~~ao~;it ............... ... .. ,...,.,...............,. .,...................5 .. . , 7. ~~~~ ~erti#icatc,~ ~f st~.~~; a~c~ f~;cfe~~.l ~ra~:~lit t~nions ..................................~a ~3. ~ot~~y ~~ar~et N~u~cs.al I~i~nc~s ........... .........................................................~i 9. Lrc~cal Cic~v~rx~xna~t I~~vest~xa:e~~t Pc~c~l;~ .........................................................Ei ?. L~tnsur:ix7~ ~~f~#y a~~' Pri~cipal ...........:................ ..o.,..,,,..,,.,,.,....................,........,.....6 1. ~?rc~t~etic~r~ c~f i~~-in~:,i~ral ........................ .a..,.....,.......,...................,.,.,.,.,,.,.,.~ ~. ~.~~~c~vcd ~r+~kcrll)ealers~~i~:~~e~a1 l~s~tutx~n~l~e;pc~silc~rie~ ..............~i 2, ~'csllat~rali;~~;ti~an .......................... .. :.:.........,..................,.,.,.,......,C 3. ~?c~~f~li~ f~ivc~rsitrcatic~~i ...................,.,.,.....,.,...,...,.,...,..:.................,.,.,.~ Ci1,~ ~f Univers~t ~'~r~ T~xa~ - I~~Test~nen~ ~'c~licv ~. ~:111'~1CIl'1.~, ~~t:lll~'1l~` .........................».................................................,,.....~f ~. ~~~~~SCC~1i'i~ ............................... . ........,...,...............,...,.,..., .,~ ~. ~.I1S UI'I~H~ ~.,1C~idlt~H1 ~' ................................. „ , .,.,.....,.,.,...,...,.,,,..».. ..~z ~. .~cl~ie~i~~ T~v~~~#~ae~~~ ~ieiurr~ C)i~,j~;.ctiv~5 ....: ......... ......................................... ..9 l, ~E'.CLiTi~~E'.S ~~?l%r~~3S ................................ ..............,.,.,.,.,.,,,.,...,.,.,,.. ..~ 2. C:c~~~~~:titi~ve ~3i~~~n~ ................. .... ,. ,.,.......,.....,.,.,............. ..9 3. ~t~t~od~ ~f ~car~itvrin~; Ma:rket Prie~:,.. ..........:......................... ..9 4. F3~nch~nark ~.ate caf" E~~tu~°re .................... .... ..,.,......,..................... ..9 5. l~e~pc~nsibili~y a.ncl Cc~~t~~als .......................:.. .......:: ...:..:................................ 10 l, Au~h~~it~,tc~ Inve~t .....................:. ......... .....:............,...,..,.,.,.,...........,........ 1C3 ~. Be~nc~in~ rec~~iire~n~nts; St~~zc~ar<l c~f ca~~ ......... .............,.,.,.,.,.,.....,.,.,.,.,... lt~ 3. ~;st~blisltxn~~t ca:E Int,c~-e~a.l C€~ntrc>1s ........ .....:... .............,.....,.,.,.,...,...,... IU 4. 51ar~c~ar~ t~f~;t.hi~s ................ ... . .... . ...,.,...,...,.,..........,... 1~ S. Tr~inin~ ~n+~ Ec~uc~atio~~ ............... ......:.. ......... ......................................... 1~) l~. I.T1V~StlTI~13~ C;UCI'1Y~111~C;~ ................................................................................ 1~} f1. ~L~C}7'IITI~ .:....» ......................................».,:... .,....:., ..............,...,...,.,.,...,.,.,.,..., ~ ~ !. ~~f'91~7~1#1k1CE'. ;'~I!(~1f ............................................................................................... 1 ~ ~. ~',G1"~1~'tCi~~At}1~ . ........... ............................ ... ........,.,.,.,.,.....,.,............. ~. ~' 5. t~Dt:~P°~'il`~d~ CLt~US~ .........................................». ..,...,...........................,...,...,,,.,.....I~ .C'&~ A.A4~rA.A1.RA.1'J.4 a. 1 4„~ ~ . .. . . . 1. Inve~tmc::n~ ~'c;r-clc~r ~~.kz~c>euled~;un~ent ~. ~3rc~~er-I:?ea~t,r ~luesti~nnaire C::z~v c~~~.Jz~i~ersi F Par~ 1e~~~ - in~est~e~t l~~~ic ~'~~+~~"€~.GE T~xe pur~~~e c~E" this ds~c:~ment i~ t€~ c~t~bli~~- ~;~~;cific ir~v~st~~~nt ~a~~icv ~~7~ sir~t~:.~y ~aic~eli~a~:~ :f'car t1~e C`ity €~~' C.7~iv~r~it;~'I'ar~, T~~~,s ("C`ity„} tc~ a~i~~~v~ t~ta~ ~csals c~f` safe~F, ~~c~~.~-c~iiy, ~n~ yielc~ fc~r a]1 i~~~~trr~ent a~tivi~. The ~~~y sh~ll ~~.~i~~r iis inve~tine~~t stzatc~;iaW~ ~n~ ~~~Iicy ~s.c~t 1~~~ ihar~ ~~~~~u~ly. T~is ~~li~;~ ~~~r~s I>s~ sati~~`y tla~ sta~iatc~ry r~:c~uir~me~~t, s~~cifzc;~~l~v tl~~ i'~~blic ~~~~~~ ~n~~;~t:~~nt Act, ~:'~a~ster 2'?5~ af t~e Tex~s ~c~~~cmmerrt C;c~c~~ (t~~: "A.s~t";}; t~a ~tfi~~e, aclc~p~ a~d re~vae~v ~, (`~r~~~i iz~ves~~ent ~tr~.t~~y anc~ ~~t~iicy. ~.ll avai(~1~~~ fatxc~~ ~~~11 b~ i~vcstec~. in ec~nf~~€'t~an~e ~u~tk~ t~~sc; leg~~:l a~~ci ~~i~nini~tr~.tive ~tai~~~in~;s: T;~'~e~:tivc casl~ ~lart~~e~rac~~t ~~ r~;e~~~i:~ed as e~s~~ti~.1 tc~ ~~~~. ~~sca] n~~~a~cax~~~7t. ~.r1 a~;~ressi~~e c:a:~h rr~~~~~~n~:nt ~i~d ~nve~tn~~~i ~c~licy ~~ill ~~ ~5~~~~~ t~i t~~:~ ~ci:v~~t~~e c~f i.ravest~~7e~t ln.terc~st ~~ ~~abl€~ ~~i~ ~rzat~~i~l ~evc~iue tc~ ~11 ~pt~r~~i~s~ ~~~ c~~il~l :fu~~ds. 'T`he C;ity"s ~c~~tfc~lic~ sh~ll ~S~ d~~~~~e€~ ~~~ r~aan~~e~ i~x ~ m~~~~er ~~~~~sn~i~~ ta t~r, ~u~lic trr:~st arld cor~~ist~;nt ~ith ~tate: ~~.~ ~`ec~~ral I~~, I~~vest~ient~ s~~Il I~e r~a~e r~%it~ t~~. ~Srin7ary cc~n~i~~;r~tics~~~ €~f: + Presc:rv~tzc-n oi.'capital' ~r~ci ~r~tuct~cs~i c~f}~rinci~~.l ' •~ainte~~x~c~ af s~~fficie~~t lic.~az.i~ity tc~ rn~;~t ~~~r~tin~ n~.c~s + S~:c~zrit~ uf C:it;r '~'~n~.s and i~xvest~a~ent~ +~iver~i~"ic~tic~~ ~a~ ix~v€~stmc::nt~ tc~ ~vc~ic~ u~reasv~al~l~: t~r #'c~rc~s~ealy}~ risks • ~!Saxir~~iz~tic~n ~f r~~,~ t~n th~ ~c~rtf~lic~ ~E~(~T~QN l : ~'~J ' (~ 9L i-l. ~.e~tha~r:i~:~ti~~ Tl~is F'olicy is aut~c~ri~~c~ ~S~ tl~c C'ity Cc~uncil ir~ ~ece~rci~~c:~ vvath ~ectic~n 5 c~f'th~ :~'ublie t~~~nc~s Invcstm~~-€t ~1ct (~'1~apter 22~E~, Texas Cie~v~rnr~~ent ~e~de), w~ic~~ ~e~uire~ th~: ~dc~pt-c~r~ c~f ~ f~rrrrrraa~ u~xi~~a~ T~v~st~ne~at Pc~licy. 1-2. C~~rals 'l"~a~ prinl~ry ~u~,l ~fth~, t~ity c~~'~~~i~~rs~ty ~'~.r~'~ Ir~vesta~xent ~'c~licy s~~ll b~: 1) tc~ ~~~se~re t~~, safety c~f ~(~ fur~ds e;r~truste~ t~ x~~ (:,`i~y; 2) tc~ ~nainlai~ t~e ~~r~ilabilzty c~ftl~c~~e f~~~~c~s ~ar t~~; ~~:ynlent of°a11 r~~~~~~ary e~t~li~ati+a~is c~~'t~e C.i~; a~~€i ~} ts~ ~arc~~Fi~~, f°or th~ i.n4cstme~at c~~ all f~a~c~~, ~~~t i~nrne~~atc:ly z~~uirc;c[, in int~r~st-t~e~ri~a~ ~cci~ritic~ or ~c~c~l~:c:i i~~vestment pr~r~~~~ts. ~h~: ~~f~ty ~fthe p~i€~ci.p~l i~~v~:~i~~ ~~~1~'al~~;ys ~e t~~ prirnar~ eancerr~. f -3. Sc~pe This Invest~~~;r~t ~'alicy a~°t~t~ C"i~ c~ftlnivcrsity ~"ark ~~~1~ i~c~ur~e ~li i~~vestr~aent aeti~iti~:s ca~ a~~y fi~n~3 c~f'tl~~ ~`ity, e~c~~~t ~t~~ th~: I~irc~~~l~t~rs' l~:~lz~fa~aci ~~:tir~;m~;nt ~und, ~vhich i~ cc~vered by ~~c~~~~r~te }~c~lic~v. I~7 ~ddi.tio~~ t~ t1~i~ f't~Iicy; bonc~ ~u~i~s, incl~c~in~ cli;~t sc~r~~ic~; a~c~ r~s~ru~ fuzs~s, ~1~~11 &se rr-~na~c~ ~y their ~~v~i°~z1n~ r~s~luti~n an~ Czk ~~ Unf~~ersit ~~r T~:~as ~ 1r~~v~~t~e~t .~'ol~c feder~l t~w, incl:c~~in~ t~~ Tax ~Z:e~`c~rrn Act of 1~~~(~ ~r~c:t subsequ~.nl tc~islati~n. t.~ity fu:cYds will b~; ~.~s~-+a6e~ f~ar inv~st~cnt ~aG~:rpc~~e>~. 1-~. iteview ~nd r~mi~n~~nr~~t This Pcalicy rnay bc ~r~enclcd €'rcaXn tzz~Y~ to tin~~ ~is ih~: C:"~ty ~`~~r~c~l n~a~ ~c~ desirc c~r as State L,~e~v n~~y ~e~~.~ire. T~f~ ~'c~l~cy, wl~ic~ i~acl~~cl~:~; st~~tcgic~ ["r~r ~ach fi~x~d +~r ~cx~led ~uncl grc~u~, shall b~ ~c~c~pted by resc~lutic~~?, rul~, c>r ~rclin~~~e~, by tihe ~'ity C~r~cil and s~~all 1~~; re~ i~wcc[ ~~~~iua~l~ I~y the ~ity C~aux7cil. 1"~Z~; f~~t t~~t thc inv~~txr~erat Policy l~~s bcen revier~ved ~~ad t~~t ~;~ry ~~ne~a~n~ent~~ have beez~ rr~acl~, m~~~t be reccard~d k~~ r~:st~lutic~n, rule a~ or~irt~~ace. SIEC"I~It)1~ 2: I~"~'C~T EI~'~, (~~~~+C`~`I'V1~S '~'h~ ~ity sllall n~ar~a~;c ~nd i~~v€~st its c~sh with Ec~ur ~b~~ctiv~:~;, li~ted; in c~~°der ol priol•ity: Preserv~.t`tt~n ~n~ ~~fety aa~' S~t°ix~c:~p~l; [~is~uic~3ty, '~ie1c~; ax~~i ~'r~,~~~;:nce. ~ll inves~~n~~~ts s1~a1~ be ~~;si~r~e~ ~nc~ ri~~:na~~c~ in a~n~:nner res~c~X~siv~ tc~ tl~~ ~au~lic trust az~c{ ~;cara~i~ier~t vvit~~ ~'t~ti an~ ~..,t~cal Law. ~'asl~ rr~~~xa~c:zn~:.~t i5 d~:f~r~e~i as t11~ ~ar~c~;~s c~~ t~az~a~;~~~ rr~c~~i~s i~ c~t~~cr ~c' incre~~~;. cas~ ~vailat~ility and i~~t~r~st e~~°tzix~~ +an shc~rt-t~:~n i~~ve~tr~e~t c~f id~~ c~~h: The Lity sh~l1 maint~i~a a cc~3~prel~ensicr~ c:~~l~ r~~n~~~:rr~~nt ~rc~g~~am t~at ir~cl~c~es thc ~aru~~r~t inve~tznex~t c~f' ~.vail~~s[e ~:~~~, 2-1. Pr~eserv~frc-n ~nd ~a~'~t~ c~f ~'ri~c~pal Th~: pri~naz~r c~bjecli~c cr# C>ity inv~;~~~nent ~etivity is t~e preservatac~~a ~sfprix~cipal in tt~~ ovcrall part3.'e~lic~, Each invc~tme~t tr~~sactic~~? sl~all ~c ~;e~n~ucte°ti in ~ r~a;~nner ciesi~nec~ t~ av~~d prir~cipal lc~s~cs, vvhel~er ~~:y ~rc f~ca.r~~ s~curitics t~e~`at~It~ +ar ~r~~ioi~ c~fr~a;~rkel ~R~lue. The ~~anraer in vrfhicl~ t~~ C~ity en~ures sa~`~ty of ~~inci}7a1 i~ ~resented i~~ Sectican ~.2, "E;ns~ri~a~ ~af~;t~ c~f C~~iz~ci~al." ~-~. Ma~ntLn~~ce c~~~~~~u~t~ Iaxquid~#y "~'hc C.ity inve~trnent pc~r~f'~li~ ~~a11 b~ str~~ctr.~re~ sc~ that t~€; C:`ity ~;s a1b~~ tc~ meet all ~b1i~~:tions i~~ a ti~~cly m~r~~er. 1'~~,i~t~n.altce csf ac~~c~uat~ Iir~ui~~t~ is ~~.~~:rit~ed in Sectica~ 4.3, "E~~~~srixl~ Liq~idit~.', 2-3. i~eturn on ln~est~r~~nts Cc~nsist~:nt wit}t St~t~ I~v~=; tl~~ C'i~y ~1~all seGk tc~ o~rtir~i:re r~L~~ ~sn in~e~t~x~~nt.~ within th~ cox~st~-ai~ts c~f s~ €"~~ ara~ lic~~zicl~ty, Inv~st~n~;nt~ (~xcl~~~in~ ~~set~ ~n~n~~;~~t u~d~r ~epar~te i~x~%est.rncnt ~ro~r~~~, scxc~ ~s in ~rbitz~~;~: re~t~~t~v~ ~a~'ex~~a~~} ~h~Il be rn~de i~i ~ermittcc~ c~t~li~ati~ns at ~i~;ld~ ~~ual tt~ or ~rs;ater th~~a t~~e ~otxd ~uiv~.lent ya~:ld c~n U~iit~~ ~tates `T'~ea~ti~ry ~ab~i~~tic~~ts of c~rtaparahle ~ya~:zrity. C)tl~er ~~~+ropri;~t~ p~rf~rn~~~ce m~:asurc;s r~a~y ~ae; ~st~b~ishcci by thc Tn~~slrrse.nl Ca~~~~it~~c, ~p~;cific p~lic:ies re,~~rdin~ invcstr~e~st catr c~f°rett~rz~ ~.re prese~~t~c~ i~ ~Se~tz+~~~ 4,4, <`Ac~ie~Fin~; Ii~vcst~n~n~ Rcti.€r~ (~k~j~ct~~rc:~;"' C°~ v~ ~t~'xvLrsit P~~r~ Texas - It~vest~~e~at Pt~lic i"~r l~c~~~€i is~t~t~;~ tc~ ~~ich ~~~3~r~.1 ~i~~~ car ~X°F~it~~a,~~ ~~~t~~:tic~n~; ~~~L~r,, t~~c ~ari~nat°~, €~~~jectives s~~all b~ t~ c~bt~i~ s~ti~~~c~~r~ rn~r~ct yi~lds ~r~d t~ ~nini~~a~~ t~e cc~sts associ~tect ~vitla inv~sta~7e~t a~f suc[~ fG~n~~. ~~. Pr~~enc~ a~d Et~ic;~~ ~~~~d~rds ~"h~; :~t~~c:~~crc~ c~f pr~~d~~c~ r~~ec~ 1~;~ t~~ ~it~ sh~ll l~e t~~ "~ru~~~t p~rs€~~ nalw'" ancl ~~~11 l~e appli~:d. in the c~nk~xt ~f ~~~:a~;Xra~ t~t~ o~'erall ~c~rtf~lics ~ithin t~~, ~,ppllca~a~+: le~al cc~nstrair~t~. Tlt~ px~a~3ent pa~r~or~ ru~e i~'r~statcc~ belc~~: "Tnvestm~r~ts s~~~11 ~~ ~~t~r~ ~~it~ yj~~~~rz~~~at ~.rz~i c~~~; un~t~r cir~u~n~tane~s t~~n pr~;u~ilin~, ~v~~ic~ ~e~a~r~s c~f~srudenc;~;, ~i~crcti~~a ~:nd ini.e~li~;cr~~e vvc~c~lc~ ~,xerci~~ in tl~e r~~ana~c~~~nt c~f#:~~ir cr~~ ~ffair~, z~e~t f°~rr s~ccul~ti~n, b~at fcsr iz~vest~7ent, e.c~x~sa~~ri~~ thc ~rab~~~~e s~~~t~ c~fth~ir cap~tal ~s r~~~1~ ~~ t~~~ pz~~ab~~l~:. i~cc~m~ cc~ be cie:z iv~:~.°' I~~ ~eterz~inz~~ ~~~etk-~r t~~ 1n~c~tnler~t fJf'#iccr(s~ csr ~nvestr~~~t ~A.~visc~r ~nder c~tatraet h~~ ~~erci~ed ~rudence v~ith rc~~icct tc~ ~t~ inv~strrte~t ~~ci~i~r~~ t~~~ cl~t~;rznin~ti~n s~~all b~; ~1ade ta~in~ int~ cu~si:ii~~tic~~~€ tt~~ in~~:stn~~nt ~f~11 fi~~c~s caver ~~hie~s thc (~~ficer o~~ ~.~visc~~ ~~~ r~s~sc~z~sibi~ity, rat~~~~ th~~~ a c4n~idcr~tic~n ~~ tc~ t~e ~sr~~~~:c;~ c~t a sin~l~ inv~~tn~ent, ancl vvh~t.~~r t~Z~ invc~t~~extt €i€~cisic~~ v~~~ c~c~x~~ister~l ~ith the r~~ri~.-~en inv~~trn~,nt Palic:y ufth~ C~~. '~`he In~estn~ent (J~cer~, actin~ ir~ ~c~:c~rc:i~ncu wii.~~ ~~~ri~-ten ~a~~c~:cS~s~~e~ ~,nc~ exe~cisin~ ~ue ~ili~~rat~c» ~I~a11 ~~t is~ ~~lti ~~~s~n~~ly res~c~~ssiblv~ fur ~ ±;~~ci~c ~~:e~~rity's cr~c~it s°~sl,: c~r ~z~ark~t ~~ic~: ~:~~c~s~~~, provi~ed t}~at t~~~e ~evi~tior~:~ ~r€~ rc~~c~rt~;ci in~xr~ec:{ialely. 5~~~.cific pcrli~:i~s ciesc~rit~i~~ the (~'it~'s ~r~x~~~ic~, ~~+~ ~t~ical st~~~i~i.r~~ ~~~e fc~un€i i~ S~ctic~ra 4,5, "[~.~~pc~n~i~iliiy~ ~~sc~ ~c~ntcc~l~." S~~C~: ~t.~~ ~. T~~'"~~"~ ~~T ~1 '~'~~~~ ~'~'~"~"~ ~1"~T `T~Ze C`ity ~ai.nt~izzs ~~X~tfc~~~e~s th~t utili:c.~; fs~~~r sg~;cific in~ ~str~~~~t ~tr~t~~y ~o~~sid~r~ticrz~s d.csi~ned ta ~~c~res~ t~e ~ni~~~,~ ~~arac:terisiwcs c~f t~a.e fiz~c~ ~ro~~a~ ~°~~are~ent~~ ~~ t~~ ~cr~tfc~lics~. 'I'c~ ~~a~in~ize t~~ ~~~'~:ctivc i~~ve~trrcc:n~ c~f°a~~~l~, ~~l ~iznds z~ucdec~ lor ~ezz~ral. cibl~~atia~~~s rn.ay ~S~ ~a~c~l~~ inL~~ ~n~, ~c;cc~unt ~'c~r i~~~~est~~nt ~~t~~os~s. T~~ in~;e~t~~~ ~l~;~ve~ frc~rn t~is a.c;c~Gint v~itl ~e di~t~ib~,Ttcd ta the v~ric~~xs fiz~~s l~a~~~ z~~~ ~;~~ir ~v~:r~~~ l~~,lancc~s ~?n a~~erioc~ic b~si~. ~'~~c~~~.~'~f t~e>~~d i~~u~~ sh~11 i1c~t be ~~a~al€~c~ ~vit~ ca~h~r ~,s~et~ c,f tl~e C::ity, b~t ~~~ll l~e ~x~a~rat~i~ae~ in th~: tu~~d zss~in~ t~c ~~r~~~; ~r~th i~~t~;rest carnin~~ ~~a tllese inve~#~ct ~aroc~e~:~ r~cca~cl~~ ~iir~:e~iy t~3 that fc~n~. 3-1. f3peratiu~ ~ut~d~ ~"he irzv~;stxner~t ~tr~t~~y f€~r ca~a~r~lin~ fu:n~~ }~as a~ its ~Sria~~ c~bj~c:~iv~ th~ a~~t~a~ac,e that. anticipat~;c,~ eas~ tl~~u~ ~rc n~a~c°:1~~c~. ~v~t~ dciec~~~at~, ir~ves~.~n~.~t Miqui~:iiy, T~~ ~~cc~~~ciary crl~j~ctive :i~ ~~ cr~:~t~ a, ~~,oz~ffc~lia ~t~~c°~~~ru ~~l~i~::~ ufill ,c~~s~^ri~~€:e rni~irri~l ~~c~l~.til.xty ciuria~g cc~an~n~~s~ cycl~~. This rna~ b~, a.ccca~rsptis~~c~ b~ ~a~~rc~~asin~; hi~;l~-c~uality 3 ~i of Uni~~er~rt r Park `re~as w(~vc~slr~~er~t ~'alic shc~rt-tc~ rn~diurn-t~r~~ s~erurities, The c~:~11~r ~wei~l~te~ a~tr~~~ ~cnatur~ty ~hal1 l~e c~l~;ulat~d in acucarc.~~n~c ~itl~ ~aAS~ r~c~u.ire~t~enis. 7"~c vv~i~ht~d ~v~er;~:~c n~at~~rity c~f o~eratin~ funci~ ~h~ll ~~~t;exc~e~ ~~t~ d.ay~. ~ecuriti~s rn~~ ,n~t b~; ~ur~;has~d th~t h~,v~: a ~nal st~led maturity d~te t~~t ~xc~ccls f~ve; (~) y~.ars. 3-2. I~ar~d. Delbt ~ervi~~ l~u~ds ~'~e inv~:stm~~t ~trate~,ry f~r bc~~~d ~ebt ~ervic€; i°un~(~) h~s as its pri~~~ry objec°ti~xe t1~e a~sc~rance of i.nvustrr~~~at 1i~rxic.ti~~r a~~c~uatc to <;c~ver t~e debt ~;erv~.e~ c~bli~a~ic~~~ an the r~;c.~uirec~ ~r~.y~rncn~ d~te. Secariti~~ p~zrclyase~ s:~all ns~t h~ve ~ st~~~c~ ~~~al ~~~turit~ date t~at exuce~s tl~~ ~~ext unfu~+~~cl bu~i~ ~ebt ~~rvice ~a~vn~e~t. d~ie. 3-3» So~d ll~esecve Funds T~e inv~:stmwn~ ~trat~~y f~rr bc~~~~ r~~~r~Fe ~und{;~) has ~s it~ ~ri~~~;r~ c~bjec~i~y~ the ~bilzty t~ ~ez~crate a d€:p~:n~abl~,r~;v~nu~ s~.i°~~~n ~c~ th~ ~~~arc~~a~i~t~ cC~bt servi~e ~i~.nc~. frc~m. sec~~ritie~ ~xit:l~ ~ Z~v~ c1c~~~~ c~f~Fc~latility. S~ci~~it~ES st~c~ul~ k~ e~f`'hi~h ~~ality and, exce~t ~~; ~7~y ~e re~uire~ Eay lhc ~~a~t~ffi t3rdi.tza~yc~: s~ec;i~ic ia ~n in~.ivicl~`~l i~s~e, €~f shor~-to- intermedxatt-terxn xnati~r~ti~s, '~~c st~at~ci f•in~l rriat~~,rity c~atc~s of s~cur~ti~s l~~l~ sh~tll nat ~;xce~c! ilvc (S~ yuars. .3-4. C"apital Pr~~~cts ~+uncl~ 'T"he inv~:st~n~nt str~te~y ~`~ar ~~~it~~ presjeuts fr~n~~ ~~x`tf°cslio~ 1~~~ as at~ pri~~ary cit~jectiv~e the as~urarrce t~~at ~ntici~~ate~ c~as~t t1c~r~rc ar~ n~atc;~ed wi~l~ ~de~~,~~t~; i~ve~tna~~t liqui~i~ty. The~~, pc~rr~f~lic~s ~~~rulc~ inelu~~ ~t le~~st: 14~`%a zn ~1~;hly lic~~icl ~ccuriti~~ to ~.11c~w ~c~r i~exibility ar~c~ ue~~.intic~patGCi pr~?j~c:t c~~~t~ay~, ~~Te ~tat~:c~ fia~~1 ~~tt~z~it~ ~i:at~;s csf"sec:uriti~s h~ld s~o~:ilc~ nc~t ~xee~c~ t~~ ~~tir~~t~ci prc~~ect c.a~nplctic~n clat~. h~£.l...P~/ 1.~.0.J.~ TU MJR ~~}..p.'ry.j4' ~d \~.R..d&J $. Ai$~~1~ 1 ~~~M Yr'~:E.:J~ .. .. 4-[. ~1,gible investr~ents I.nvestr~z~nt~ d~s~.ribe~ ~~lc~rr~ ~:r~ thc~sc~ ~ut`hc~ri~ed by the P'ublic keu~cis lnvestm~nt Act (C;~.apter 225f~, ~'~:x~s C`xc~vc~~zn~~~t C"+ac~~}, ~.s ame~t~e~t, u~~zc.~i is na~ci~ ~~aart c~~° t~is ~sslicy. T~c fc>ilc~~in~ li~i' m~ay nat coratazn ~ll c~f th~:~e s~ca~r~ti~~ tl~~t ~re authc~ri~~.c~ b;y ~tate ~t~~~ztcsg i~ut ~s~~y ~~c~se tl~~,i the Cit.y C:~t~r~cil `~~sh~;s ~€~ in~1u~~ in t~eir ~c~rtf.'ali€~s. I'hc p~~rclaase ~i.'sg~ecific ~ssues z~~y ~t tizncs be ~tar~h~~ r~siricted ar pruhibitec~ bec~.ns~ of cuxrent a~arket ~t~~c~itic~~ts, C~ity fu~ds ~;c~v~:rncd ~y this F'~licy t~:ay i~~ ~~~vestec~ zn; 1. c~bli~;alrca~s ufth~, L1~~ited St~tt~ c~r 1t~ a~~nci~~ ~n€~ i~~tru~n~;nt~Iities, 2. ~ir~ct c~bli~~tic~ns c~fthe St~te csfT~x~ c~r ~t~ ~~encies~ 3. other ~bli~~tion~, th~; prrr~c~i~~l ax~d ~r~ttresl e-n wk~~~:~. ~re tt~e.tsnslitit~n~.lly ~~~aa~arateed c~r it~~ia~d ~y th~° ~tate c~f T`e~as c~r t~~e [.Jz~.it~~ ~t~te~ c~r its a~~n~°i€~s and ix~st Lx~taliti~s. 4 ~"it • +~~' ~'~aiver~xt Par '~°~~~s - i~v~stmt~c~t Polie x ~. sab~i~atica~~ c~~`~t~t~~, ~~e~~cies; e~~z~~ties, citi~~ a~~c~ c~t~~~r p~l~~ie~:l: subclivisica~~~ c~f' a~sy ~tate havin~; b~~~ ~°ated ~.~ t~ inr~estn7ent quality ~y ~~~tic~~~l~y re~:~~r~i~e;c~. in~e~i~ment r~ti~~ f:i~ ~:n~ ~~avin~ r~ceivcd a~atz~~ ~~ ~c~t lc~s t~~~ ,~1 ~ar its ec~~,~i~al~~~t. ~?, ~`~~lly ccallat~ralia~~ dirc~ct re~~xr~;l~~~~ ~-~;r~~~7~nts ~~~~~~ ~ t~efi~~€~d terr~ai~t~#i~n c.~at~, ~~;e~r~:ci ~y ca~li~ati~ar~~ describ~ by ~~~b~ivisian ~. ~f°~is s~.~bs~cti~n, pled~e~. t~ th~ C:~ty, hc~r~ in tl~e ~°i~~'~ ~xam~ a~~€~ ~epc~~it~c~ at t~e ti~ae t~~ X~~~e~t~~e~~~ is tn~d~ ~Fit1a tihe ~ity ~ith ~. t~ir~l pax~ty s~~~c:te~ and ap~r~v~c~ b~ t~e ~`ity, a~~~ ~slac~c~ t~~c~u~l~ a ~?~~na~y ~c~~Fer~~~a~~~~t s~~~~z~ti~~ c~e~l~;r, as c~c~`i~e:c~ ~-~ t~~ ~~~l~r~~ ~e:sG~~v~, a~r ~ ~.r~aX~czal irt~tituti€~n dc~ir~~ ~usin. ~~s in Texas, ancl ~savir~~ ~~n~rk~t valixe (i~acl~;~~i~~~ a~cru~c~ intere~t) c~# ~c~ lc~~ tl~an th~; ~rinci~a~.l axx~c~rznt c~~t~~ ~~xc1~ dis~aurscd; t5. ccrti~icate~ c~~ ~e~~sit i~s~~~c~ I~y a c~u~c>~i~c~ry instituti~~s ~°itl~ a~~~in c~f~ice c~r ~ranch i~~ T~x~~ that ~~c~; l. ~uaranle~~ c~~ ir~su~~d l~y th~ T~~:c~c~ral '1`~epo~it 1ns~~~~c; Cmc~rp~sr~tic~n, ~r it~ s~.~:ccesse~r,' ~z~. 2. ~€~u~~rcd by c~~li~atio~~s that are ~escra~ec~ ~Sy 1-~~~a~~e, ~vhXC:h ~,re ix~t~;~ci~cl i~a inc~~.tcl~: ~zll c~irect ~'ed~ral ~~~n~:~ or in~t~~~zc~~at~lit~r is~~~~s ~~~t 1~~v~: ~ mar~el, va.l'~e ~i'r~cat le~~ t~~n. t~e ~ra~~;x~~l a~v~~t a~~'t~~ c~~ti~e:~zt:c~ ~r in a;ny c~~h~~ r~xar~~r ~~c~ ~~~~u~yt ~rc~vid~c~ ~~ la~~ f€~r ~~~~s~iti~ c~~` t~~~ C"ity, '7, ~~are ~:ertific~tc~ is~~~ec~ by ~t~te ~~~d fe~cr~l ~:xe+~~t u~ic~~~ v~it~ ~ z~~aln, uf~ee c~r ~rat~ch in Tex~ th~t ~~~: 1. ~u~ara~~tc~°,~ a~r ~nsu~'ec~ 1~;~ t~se ~~.tic~nal C; red~t Uz~ii~tz ~~a~e ln.s~,z.ranc~ kFunc~, ~sr its ~uuce~s~ar, ~r, 2. seei~r~t~ l~y'~bl.i~~ti~s~5 that ar~, de~crita~d tay 1 w~ ab€~wcF~ ~hielr a~~e i~~t~,n~led t:c~ ~~e~c~ci~ ~l~ tiir~.;t i~ecl~r~1 a~encv r~~' inst~n~~~~t~lit~ issue~ that ~~a~~, ~ r~~ark~;t v~~~~ cif` ~a~at 1es~ th~~~ the pri~~cip~I arr~c~~~~t c~t ~hc~ c~~i.fic~t~~ car i~ a~~y c~t~~r rn~,~n~:r a~i~ a;n1c~~~nt ~Srov~~t~cl by l~~ ~~~ ~c~p~sits o~t~€e C"ity, ~. S~;C:.-rc~~talat~:~, ~c~-1~~~i,~nc~n~y naai°~Cet r~l~tual f~,~ads v~it~ ~~~1~~°--~T~i~tt~;c~ ~~=era~;~ st~t~,cl ~~rt:fc~~i~ ax~~turit~~ ~~ ~t) ~ay~~ a~r les~ ~~c~ wh~sc~ a~sv~~t~€~~~t ca~je~;ti~c~s inGlud€~ sce~ix~~ tca ~x~~~nt~i~a a s~i~Ie ~~t a~~~;t v~lct~ crf` ~ 1 p~;r s~are'. Nc~ n~are tha~l 15"ln i~f' chc; C"ity'~ ave~a~c ~`i~a~~ b~lanc°e ~~ay be ix~v~s~ec~ z~''~rac~ne~ r~~r~~t a~utu~l ~'ir~ci~, ara~. the City xn~y nc~t i~v~st func~s ~.anc~er at~ ~;ca~tr€s1'in ~~c~~r~t that e~ceec~s l~°~~ s~ft~~: te,ial ~ss~ts a~ ~n~r it~c~iv~du~1 ra~c~~~ey ~~~r~e°t ~~t~al !"~z~~. ~3. Lcsca~ ~c~vemme~~t inv~:~tn~ent p€~€~ls c~x~anz~ed zn a~~:c~~c~~z~~ ~ ii~ the intcrl~ac;al C'oca~~;.ratica~ 11~t (~"~~~S~~r'~~1~ T~xas C'x~ve~~rn~~t ~c:t} ~,~ ~a~~e~c1~d, av~c~se ~~~ets cc~nsi~t c~~c~i~szv~ly c~~t~~^ ~a~li~~tion~ that ar~ ~11~-r~v~;~. ~~ a c~ir~ct inv~~trn~r~t fc~r iuncls su~?jee.t tc~ t~~e ~'~~~lic: ~~un~s I~~~e~~ra~~~t9; ~1c°t ~~h~,~i~r ~~S~S; `r`~~~.s C~c~~xenxztacx~t +~`c~€i~). A p~sbli~ tux,~s i~l:v~stme~~t ~a~il ~s~u~~ i~c cti~~ti.s~i~c~~.~s1~ ~~t~;~ -~c~ 1c~v~j~,r tha~~ r~~,~1., :~.~1\-x~ e~r ~t an ~c~uival€~nt r~tin~; by ~t le~st cs~i~; :~latio~~all~ r~co~;rsire~ z~~.7r~~; ~e:rvi.ce. ~ ~i of Universi % Par `~"ex~s - I~vest~ment ~~lic Fli~i~ale ir~~;~st~r~ent ps~als ~7~~~st be a~atL~c~rized. by ~~~ ~"it~ ~c~~a~ci1; by rule, carcier, r-rc~inance., c~r rc~uluticrz~, a~ appr~apzi~te. T~c C;ity ~`c~u~~~:il h~s ~ppresvcd: 1} the Te,x~,~ I.,o~;al ~c~~ern~~n~~t in~~c;~tme;nt ~`c~~al ("Tc~xP~rc~l"~, ~,c~r~~ini~tereci ~Sy tt~e ~"exas S~at~ C_`or~~tresllcr, 2) th~ T~:xas ~l~c~rt Ti'~na ,~,s~~t ~.es~t~e (""~"~~~""I"~~2"); adaxrix~ist~z•ed ~y JP~~r~~x~ ("has~ an~ ~irst ~c>utk-~ac~t A~~~~ M~~~~~:~ncnt; ar~d ~) T~:x~~TE~,R~i1 and 7'ex~s]f~~il~, ~drni~ist~rcd by PFM ~ssct ~']C~~~a~c~rnent i,I,C`. IJnless t~sac;.ked hy thc fi~.l~ faitli ~;nc~ c-redit c~f the U.4. ~~-~~e.rr~cz~~nt; znve~tm:ents in c~allaterali~ed ~a~artg~~~c €~1bli~~tic~n~ ~.re str~etly prs~~-~srt~cl. "~`l~cs~ :~~c~riti~s ~rc~ ~1~c> dis~llcawed far c+~ll~tcr~,i prssitic~ns. Tl~c~ Ci~ ~~ill n~f. b€~ r~c~~~iz~c~ tc~ lic~~aicfat~ invGStrne~rts th~t were aut~or~z~~ in~~:4t~xr~nt~ ~t ~:~ae tirne c~f~rzrc~~se. ~-2. ~~nsa~rin~ ~afet~~ c~f l~rir~cipal ~ns~~ring safety is ~ec€:~rrrzpl~~~t~€~ th~ca~:r~~ ~roi~:ctickx~ c>f~rin~;ip~l a~~c~ ~~c:k~°epin~. 4-2-~ Protectinn €rf Princi~al °1°t~e C~itiy s~~ll se~~ t~ c€a~tcc~l t~e riS~C c~f l~s~ ~~~~ I~ 1:hc~ ~'~il~~re +~fa securiiy issuer c~.r guaraz~tc~r 1~~~ ~nv~~ti~~ ~r~ly in the safc~t ty~cs t~#°~~c~~riti~~ as ~t~fi~aer~ i.n the ~'c~licy. Settlernen~ €~f°~lI inves~nc:~t transactiuns, ~xcept i~~~c~ tr~n~actz~~~~ ix7vt~lvi~,~ invest~m~~~ts i~~ r~sut~;t~l fiand.~ c~r lc~cal ~t~v~.rr~t~c~~t inve~~~~~tt ~~acals, x~ust be n~ade un ~ ~eliwre~ ~~rst~~ p~yn~e~t (t~VP) ~asis. "~~c~ ~~r~:~a~~e €af°i~cii~i~ual ~ec~rrities ~1~~L1 bu ~~c~acut€~d ~~'1' i~rc>u~h r:.hL I~edcral l~e~t:.rvc ~v~t~,n1 d.elive~eci tc~ ~n aG~thcsrizcei s~fck~~~i~~~; a~eni: o~ tt~ust~.e (<.cust~rdia~a"j, By ~c~ c~€~in~, City fi~~~ are r~cat rcle~.s~;d uz~til l~e C":ity I~as rcc~,ive~, ilu~au~~~ t:31~ Fcc~er~I k.c~~er~fc wirc, the sec~;u°ities ~aurch~~~. Tl~c s~curit~ s~~all b~ laeld iz~ t~~e ~~~~~z~ ui~ th~ Gity. Tl~c custc~ciia~~'s records s~~~l ~ssur~; t~e nutatio~y rsf C"aty c~~~~~~rs~-ip ~t ~r explic~t el~.ixn on t~-e s~°curi.ties. Ac~ciitic~n~lly, ~h~ ~`zt~ ~~~ll ~c~here tc' t~c 9~c~llae~i~~ ~~~€~ti~:~s tca ~r~st~ct i~s i.n:vc;s~rn€~nt ~ari~~ci~~el: 4-2-1-1 ~p~rov~d ~rcr~Z~~°/C3ealers,/Fin~nci~l lns1.a~utaa~s and ~e~e~s~t~arics In~~e~trnents s~~all c~nly ~Se ~nade w~th th~rse firrr~~ a~nd instit~ztic~ns ~%h.u ~av~ ackr-c~~lc:~ged r~~;ci~st ~r~c:i t~nd~:r~tanciin~ e~f°t~~ C'xty~'~.I~c~estmei~t ~'~lic;y. The "c~t,t~li~~d re~r~s~nt~t~vc" ~f ~~e ~~si~~es~ ~~ c~~~"ined i~t ~'~ta~t;er 225C c~fthe T'~xas ~c~ver~~c~~t ~~acic ~lsall ~:xecute ~ ~ritt~n certific~tiz~n ta aeknc~wle~~e r~c~cip~ of`th~ ~it~'~ Inr~~stn~er~t ~~lic}F ax~c~ tca a.e~aou~l~~~~ t1~at thc~ or~~niz~.tic~n }x~~ in~~leznc~nte~ reas~r~ak~l~ ~z-oc~ciur~~ a~ci c:~ntrc-ls tc~ pr~:c:Icc~L an7~rrr:c~ent in.v~~t~~x7t activiti~s ~ri~i~~ ~1if c~t~ thc iz~~e~~mc~t ~ransactiUns co~id~icted bct~nre~n thc ~~~ti:ty ~x~~ the C"ity. S1~esulc~ th~ Cit, co~ttrac.t witla a~~ extern~.1 investme~~t advi~or tcs ex~~ute the izave~t~ent str~te~;y, i~~clucii~~~ t~~c ne~c>tiaticsn an~ ~~~c~t~c~z~ c~f in~~€~stment ir:~ns~ctior~s, a~n~;na~in~ c-f"f:ice.r af tl~e inv~:stn~e~t a.c~uisc~ay firrn n~~y ~i~x~ t~~~ vvritt~x~ u~z~ificatac~n i.n li~:u c~f ~1~~; i~rcikerlc:~c~]€~r ~r~s. This c~~~ti~e~tio~x ~~.~4t ~ac ix~cl~~[~~ as p~.rt c~f ths~ invesl~nent ~~~vi5i~r;r c;c~~ttxa~;t. 6 ~i . of [Tniversih~ Par ~"e~~s - x~a~~st~ma~nt ~o[ie~ Sec~~itie~ ~~~ c~~~eat~:~ o~' ei~~+~sit ~l~all c~~~y b~ ~urch~sr~c~ fra~m thc3~;~: i~stat~~.~it~~xs irz~;~~t~t~d ~n tl~.~'~:ity°~ list c~('brc~kerl~l~;~~~.r~ ar~d fi~iancial in~iit~a8:ic~ns a~ a~pr~~e~ b;y t1~e l~~w~strss:ent C:cax~~i~e~. ~.~1 s~c~zrzties de~I~r~ ~hall }~ar~vi~~ the C''ity vwi~~ ref'er~:nces frc~n~ ui~~er ~ublie. entities tllat t~ey ~:Y•e c~,~°~.nk~y se~syi~~. 7"~i~ li~t vfap~r~vec~ i~vest~~e~t ~rc~viclers n~ust b~ revicr~Fed ~t l~~~t a~~u~Ily b~ t~€~ C~ity's I~~v~~~~~st ~'~x~~itt~e and s~~ll b~: reec~rc~ed i~ tl~~ t.e~~a~z~itt~~'~ n~,~~:~ir~~ ~~in~ri~~, Tl~~; ~at~~'s ~~iz7anec A:~~Flscary C.~s~r~~it;te~ ~ks~~3 c:c~zn~~-~~~ th~; Inv~;~in~~nt ~a~rrzmitt~~. AII ~tatc az~d nati~nal ~aanks l~c~r:~c~ i~1 ~~~~ ~'~#~g ~fT€~xa;~; ~~~ic°.1~ a:~~e iz~s~ared by tlae ~ed~r~al I~~~~c~sit i~sr~:r~~~~°~; ~'c~~~r~lic~n {r~?l~~ ~~re tc~ be can~ic~.erecl as ~;li~il~l~; ~~~a~asitc~ri~~, T~i~ ~.~a~ci~l ~;~~a:clitie~~s €~~tla~ b~~k ~~~11 be ccgnsici~:re~ px-ic~r ta~ e~t~bli~l~i~~~; ~~y ac~:c~uz~ts wit~a th~t ~iank. 'l~c E~ia~~nc~ A~~Fis~ry C~~~n~~itt~~ ~h~13 re'vi~w~ tL~e 1,icl~ su~rnittc.c~ bg~ dep~sitcary e~~~c~ida.tes ~~~c~ rzl~ce a r~cc~za~r~au~~datic~~~ l~ the C;ity C:"auxzcil fur tinal ap~srcaval, ~-2-1-2 ~'~tll~te~°al.izati~n ~c~nsistcnl v~it~i t~~e ~cc~uirc~r~~~~ts ~f ~t~~e Iae~, tl~~ ~'~~y r~q~ares ~11 baz~~ c~~pc~~it~ (i~.c°:tu~ln:~ tirn~; s~~~sc~sits) t~ k~ f°~a~~:r~~Iy in~u~~d. c~r collaturali~~~ v~~itl~ c~i~il~a~~'sec~~riti~~. F~n~r~ci~1 insti~c~tio~~~ s~~°~xi~~ ~~ C`ity I)c::~c,~t~~ri~~ vc=ill be r~qui~e~ tci ~i~t~a an ~~rc~r~ae;nt rvit~ the ~ii.y arad i~~ ~a1'ekee~ira~; a,~~:nt fcsr tl~~e c~sllate~°~1, ~c~l:ecti:r~~ the Ci.t~,s r,~~*hts ~s~ t~~ c€~l~ater~l i~ c~se ~af d~:f~ult, t~~~a~~}~tcy €~r clc~sur~. The t"ity ~h~i~ ~tc~~ ~ec.ep~; ;~~ d~~a~a~i:le~~y cc~1L~t~.r~I, ~r~~ s~c~xrity ~l~~t is ~~~t. ~~a~citica~ly ~ll~s~~c~ t~ bc :~c~l~ ~~ a daree~ invest~n~~~t b~ t~e ~itv ~~rtf'c~]~ca {~e~; 4-I }. ~t~p~,€rc:~xa~c a~re€;r~ae~t~ z~~zsi ~~~~ k~~ c;s~ll~te~ali~~:ci irz accc~rcl~an~;~ with ~t~t~ ~~:v~j. E~~ac~ence c~~th~ ~[c~c~~€~~ c.crll~~~~~1 shall be ~~naintainecl b~ tl,e Fin~~~ct~ ~)ira~c°t~sr €~r a l:~ir~i ~a~~°ty fin~.nci~l i~a~f;ih~ti~n. ~Il cull~ter~.1 ~~€s~11 ~Se s~7bjes~~ tc~ in~pc~cti~r.~ a~e~ ~.~~:ciit ~Sy the ~~in.~rte~ I)ir~~t€~r c~z th~ C`itv in~~pen~~~a#. ~u~itc~r~. 4-2w~-3 ~'a~°t~°al~~ `~iversi~ic~tion I2.i~;1~ c~~`~ri~cip~l lc~~~ ir~ ~lh~ ~orttc~liv ~~ ~ wL~€~~~; y1~~Cl k~~ ~aix~i~alc~cl by s~iversifyin~ iz~v€~~t~~~nt ty~es accc)rdi~~~ tc~ I:I~~ i~11~~~~in~ li~x~it~ti~n~. ,~.~ ~is~u~seci'~~1c~~, tk~~~~ li~~il:~ticsr~~ de> n~l ~~a~aly 1o t~c~r~~. }~re~ec~cds. I~~~Eest~zac~t ~ e. `~!~ ~f.'T'c~rtfe~li~ « ~11,~. T`r~~~a~r~r l~(cate:~/~3c~n~~~F3i11~ 1.tltl°n • ~.J,S, A~~;n~i~s 6~% « L;€~~~~ C~avern~n~r~l In~est~xcent Ft~t~ls ' St~"ia~ ~ ~e~s~ar~l~a~~ A~re;emc;~ts 3~°fo + C"t~~ific~tr~~ ~f"i:)ep~sit ~~1°i,; « 11~e~~~ey Nl~~ket Mut~a~.l k`urtd~ 1.5°l`~ 7 C°i o~ Unaversit ' Park "i°~x~~ - ~r~ve~t~n~nt ~'~~icv Tt i~ t~sW ~c}lic;~ c~f"thc~ C;~t~e tc~ c~i~crsify its inv~s~rr~e~at ~artf`~lic~ so t~~at reliance c~r~ an,y csn€~ iss:acr car br~k~r wil~ nc~r: plac~. ~.n ~u~ciu~ 1~t~~ncial bc~r~i~;n on the ~ity. C:'~z~er~ll~, the C:ity ~hcruld 1-'rz~it it~ x°c~~arc;~~~ a~re~~xent e~posure ~~ith a sin~le firr~ to r~o ~ncrre than 1~% of°~e'val~~c ~fth~: ~ity's c~~verail ~cr~f~licr. 7"U a1lvv~r c#~ic~ent ~~c~ eff°~:ctivc pl~~,cine~t +~f pr~cc~r~~ fr~n~ ~~y ba~nr~ sales. t1~~;~e .timit~ ~t~y ~e c~~~:eed~~ f~r ~ r~~a~~r~~t~a~z c-t fza~ bu~iness da~s fe~11c>~r1n~; tl~e rec~ipt ~# ~ac~t~c~ ~-roceeds. ~'rocecds c~f a sin~l~ ~~~~d issu~., in~y b~ in~Fa:stcd i~~ a~in~l~ ~e~;~ti~ +~r i~~vestr~~e.~a~ if the l~~v~es~'tt~nt ~:`c~~~r~~itt~e detcr°~~i~es th~t ~izch ~:n inve~t~n~~t ~~ ~e~:c~s~xy #~ cc3.n~~ly wit~ T~~c~e~] ~~bitr~.~e, .rc~~trietic~ns car ta f.:~.cilit~te arlbiira~~: recc~rd kc~e~sin~ ar~d c°a]c~.~I~tics~. 4-2-1-~ Girr~itin~ N~~t~urx~ `I°c~ n~inimixc ris~c. of ~c~~s du~ to .i~ttrest rate 1~~€ctuaticsns, i~'vestme~i: m~lur~tic~ wil~ ~ca~ t~~c~c;ci tl~e az~t~c.i~at~ c~,slh f~o~ rc~e~uire~cnts af tl~c f~~n~:~, k~or ~~~€;ratin~ ~unds, th~ dc~llar w~i~l~t~.c1 ~v~~a~~ ~iy~ t~a ~it~~~ ~tated z~ata~rity sh~ll b~ 5~~ d~ys ar l,~ss: T~e I~~v~st~~~nt (~f~c~r r~i[i n~c~~it~.r the ~~a~ur~ty 1e~FeI and n~~s~l~e c:tsan~;es as ~p~r~a~ri~te. I~or bc~~c~ fut~ds, ~h~ in~ve~tment n~aturity <a~ ~S~-~t~ ~~c~ce~ci:~ (including re~er~vcs a~rd del~t ~~r~ri~~; func~~) sh~.ll be d~:terr~ln~c~ c~?ns~~~ri~t~. l) t1~c ~a~€ticipatec~ c~,sh fl€~~r r~:~uixements o~ ~ha; fia~c~s, ~n~; ~} ~. t~~ ict~mporar;r peric~d" ~s ~~;:f~,ir~ed b~ i~~:c:fcr~l tax I~~v durin~ whic~ tir~e ~~~~ ~-r~~c~~,s zr~ay k~e in~ est~c~ at an ~.~~r~~tricted yiel~. Aft~r t~e expirati€~~t r~f t~t~ t~~~t~r~;ry ~~ri~7d,l~cgr~c~ pr~~~c~~ s~b~ect tt~ yield r~;~triei3oi~ ~l~a~l b~ ir~vest~d ct~nsid~.ri~~~ t~~e antiGipat~c~ €~~~;~ f~r~w rec~ui~em.e~~ts csf t~~e func~~. 4-2-2 Sa~e~cepin~ T~~ ~ity sl~~;ll cc~x~tract ~a{it~ ~~~k c~c b~nk~ tt~r t~e safc~kcepin~; ~f,s~cnz~°ii~~~ eithcr c~wr~cc~ k~y the ~ity as ~ p~rt c~fits izYr~e~~inent ~c~rt~'~1ic~ c~r ~elc~ as ca~t1~.teral. tt~ ~~,cure ccrti:fic~te~ c~f~.epc~~its ar ~'~~~~reh~s~ ~.~reernc~ats. Tl~s~ Saf~kc~epi~~ A~~~e:n~~~~i shall cl~,~r°ly ~te#znc~ i:he ~ar~ac~d~r~l ~;t~~~s for ~ai~i~~ ~~c~;~s t~a ti~~ ~~llat~r~l ~~a~:c1~i t}~c~ ~`i~.y d~t~z-mix~e t~~t f~e ~xfiy fi~nc~~ ar~, in j~rapardy. Tl~~ ~~~c~~:eep~~a~ ~r~stituti4rr, or T.r~ast~e, s~~all ~c~Ic.~ ~:1~ ~f`c~r~n~~~~ic~x~ed secti~°i.ties i~~ a~x acco~tn~ ~t I:he I~^c:der~l ~t~:s~rve Ba~a~. that s~~ci~~~ C:~ty ~a~.v-~~rshi~ c~~'t~e a~c~~~1t. "The ~~fcke~~ai~~g ~green~ez~t ~~all i~xcl~~d~ ~:he ~ig~raatur~;~ c~f" auth~~~ed re~sresent~ti~e~ c,f tlae C:'ity, the ~~~n ~Ie~~~n.~ t~Ze c;c~l~at~~~l ~~d th~: Truste~. 4-3. Ensuring l~iqtxid~ty' Liqc~idity ~hall ~~ ~chic~red by ~~~tellin,~ inve~tm€~ne rn~tu~-iti~~ ~rit~ f~arec~~r.e~ c~sh fl+~w ~~cqr~ire~nents, by in~~sti~~~ ix~ ~e~.u~`itaes ~ith activc~ s~uc~~act~y n~~.~1~~t~, ~~~~i by i.nv~sti~t~ in eli~;iblG rz~c~ncy ~~.r~~.1 ~~~tt`~l ~~~nd~ (M:~O?IMi'sl a~~d ~c~~~l ~~vc:rnn~e~i inv~;st~~nt ~ac~c~ls (I.,C:~IP's). ~3, sccurity n~ay'l~€~ li~~zi~;~tu~ tca zrruect t~~~~r~ticip~.tr~ ca~h req~aircm~;nts, tc~ re-de~l~y cash i~atc~ oth~~ inve~t~~~nts ~x~ectcd ~c~ c~ut~ac~#~s~n curru~t hc~lc~i3a~s, c~~• tc~ cather~i~~: ~c~~us6: the p~rt~~t>Ii~~, GG-4. A,chi~vi~r~ [x~~estr~~ent Ret~r~ ()k~jective~ 8 C'i o~' L~raive~s~ , P~r '~'~~a~ - In~=~st~~~t ~olie X lnv~;~tn~~.~at sel~~t:ic~n f~r all ~a~~d~ ~h~~1 be b~s~c~ c~~ 1c~~~~zt~, ~~~r~~r~~t~~e;s~, [i~ui~ity, ~~nd risk/retti~rn ~~a~si~er~~ic,~s. ellthc~~~~h ~h~; ~`it~ vvil~ a~l~pt a"b~~ and hc~ld" app~uacl~, ~t ii~x~e~'the pc~rt~~a~ic~s x~a~~ b~ ~~;tiv~:I~ m~n~ged t€~ crx~ian~c ~v~~al~ i€~terest incc~~~e. ~ct~v~; ~r~an~~a~~neni v~ill ~~ke pl~ce vv~t~in tl~~ ~~-~tG~t ~~"~~ac~ "~"r~~d~°~~t P~:.~~n ~u1~;." (sc~ Sectic~~x 2.4}. 4~-1 ~e~uri~e~ ~~~~~ ~`l~c C~iky ~a~r t~~' ~c~v~~t~~~ of ~ecu~itv s~a~ ~spp~rt~aniti~s t~ ir~prc~ve ~SC~rtfc~lac~ ~i~1c:~. A s~~~a ~l~~~h in~~roves p~rrt~~~ie~ yield ~~~y b~ s~l~~~~c.~ ~vex~ if t~e.R tr~,ns~.ctie~n r~s~lt~'ir~ ~~ a~:c;c~~t~-tin~ Ic~~s. 4-4-~ C~a~peti~~ve ~3ic~dzr~~ It i~ tl~~ ~i~lic;~ c~f't~~ ~"ity tci r~c~~ir~ c~sr~pct~tiv~ bieEc~in~ f+~r ~l~ :intiivic~ual s~c~~rity p~;~rchase~ ~xc~pt ~'~t° t~~~~ t~~~,.s~aGtic3~s en~~t~ ~ncsn~y m~.r~et i~~~.-~al :(~ar~ds {Mi~~1Fs) ~:z~c3 loc:~l ~;~v~x~~~~t i~~v~st;mc~i ~sc~c~ls (Lt~I~''s) ~u~izc~ ~~~ c~~~~~d tc~ b~: ~a~d~; at ~r~v~ilin~ ~~ar~:.~t ~ate~, a~ad ~~r ~c~vertx~-~:rat ~ec:~~rit~c~s p~~:~~s~~ at is~u~ thrc~~z~~ ~ prirnar~ c[~aler ~t ~uct~~~ p~~~. R.ath€~r th~z~. r~~~i~~ ~c~l~~~ ~an ~ieleEa in~~,s~n~ent i~z M~M~ac ~r~d ~..~.il~'~ ~~~Il l~~ l~a~~~~ c~~ crit~:x~i~ det~t~~it3~d t~y t~c~ Invt,~tm€~~a.t C'c~xnmittc~, i~~clu~:in~ ~€~~~er~,~s~e ~v ~ecuritXt~~ arz~ ~a~€;ha~~~~ ~`ca~~aissic~~ (~S~;~r~ ~~i~~:lin~~ f:csr Ni~~~s ~~h€~~ a~~s~c~~~i~t~. Ai lca~t thr~.e bi~~~rs rn~~t b~ contacte~ in a~l t~ns~~,tzc~~~ i~~~s~vi~~ z~cii~i~~~l s~:curities, ~";c~m}~~titi~~ ~i~di~~ f~rr sec,u~-ity ~~~~~ is ~~~;s~ zca~~ar~d. ~3id~ ~n~~ b~, s~licitct~ i~ ~~y r~~~~~~r ~sr~vi~~~ by l~a~~. ~'c~r 1~~~~ ~i~uatic~~~~ ~}~~r~ zt ~~~ b~ i~~~+r~ctica~ c~r u~~~~~~n~~l~ t~ rec~i~~~ thr~e ~i~s fc~r a tra;n~actis~€a ~~.~e t~ ~t ~aplc~l~ c;t7an~~n~; rmarket i~nvirc~nr~e~~t ~r ta seean~~r~ nlark~,t ~vailabi~~ty, clerc~~~ac;~~ati~n c~f'~ c:.c~in~etiti~~e ~n~.rl~et ~~,~rv~y c~f°c~arn~arstblc s~cuz-iti~~ c>r ~~ ~x~la~a~i~n cr('t~~e ~p~cific circu~~st~~ca~ ~~t~~t ~i~ i~~cl~zc~cd ~it1~ the tr~n~~acti+~~~ bicS s~te~t. e11~ ~ids t`ec~ived n~€~~t (~c c~cacuan~~t~d ar~~ '(ilcd ~'c~r ~tz~itin~ ~~u~°~~€~ses. 4-4-3 ~ethtad~ ~f 1~+~r~itori~~ ~~r~et Priee "~'~c n~~t~c~c~sl~c~t~r~es tc~ bt~ use~ to ~~~-z~ite~z t~t~ ~ri~~: a~f' i~~?~~tr~~ent~ t(~~t ~~:ve I~een acquire~ ~ri.t1~ p~abli~: fttr~c~~ ~~~~ll ~ac ~`t~n~ sc~~:u°ces d~e~c~€~ r.e1~~b~~ l~y t:~~ Tza~cst~a~;~~~ G3~f icer„ i~:c°,lu~i~a~ ~r~~~ry c~r :rc~ic~nal l~~€~kexf~e~~€~rs, c~5t~:l~~is~ici'fiz~an~:i~l ix~stiti~ti~~~ ~rc~~YCiin~ ~~e~~°tf~li~ n~~~a~et~et~~~c~;c~un;ti~~, ~c~~ic:~.~5~ thir~-~a~rtv ~;~f.'ekee~ai~~ ~~pc~r~s, ~i~sa~xc~~l ~~iblic:~:tion~ ~ucl~ as t~~ ~~*~Il ~`tr~a~~~,~c~~rr°~ru~ ~~~r~~t infc~rla~~iic~c~ v~~~€ic>r~ ~uch as F31o~anib~;r~ +ar ~'ele~~ai:~, ~n~ ~~~~k~t ~sri~i~~ ~;~:rvicu~. ~~4-4 ~~~c~m~rl~ l~~t~ ~-~' ~~~~rn ~~ a~~:ncral ~t,~i~~~i~xe, t~e t~ity's ~~~1~ man:~~~;zn~;~at ~rt~°ca~a~ s~~all be clt,~i~ned v~it~ tl~e c~~ajecti~=c c~~r~~~~l~arly r~c~tin~ tl~e a~era~e ~etc~rr~ €~~ t~ir~e-rnotat~ ~.5. Treasu~-~ F3i11~, c,r 3:~e a~ve~a~c r~~~ ~f )()-day ~'~rt7~ieat~:s c~~°L~7~p~sit. '~'Ise~e i~idiccs are e~nsi~er~~ ~~~ze~~~:~~°k.~; :[~at ri~3~-frc,e investr~a~nt tr~~~s~cti~~~ ~~~ ~her~f~r~ c~n~~~i~~ a~t~~c.~ard i~c~r the ~artf:c~~ic~°~ rat~ c~f r~tur~. t~~~iitici~~~ ls~:~~1~~~:~r~~ x~a~ b~: c~.ev~;lca~r~~ ~~zs~ rec,raara~rr~~r~c:~~aci ~y thc, Tnvest~ne~t ~c~~~z~itt~e ~~a+~ ~;~se~i as a cc~xr~~aara:li~v p~r~`c~~~s~~~ce ~7eas~.~res ~c~r tt~~ }~c>~~tf~,lie~. A~~ili~n~:l I~enchm~r~s th~t ~a~ be cc~~~siti~r~~;~ fc~r t~.r~eti~~~ :by tl~e 1~zv~str~e~~t C".cs~~~it~~e i~~:~u~e th€~ C~on~tant 9 Cit ~ af Universit ~ Pa~°~ I'ex~~ -~n~~~*st~~nt lPolie r Mai~~:rity 'I're~sG~ry ~il~ ~vitl~ tl~~ ~t~turity th~t .~c~~~ c;l~sely ~natc~~s the ~uvGi~hieci a:vcra~e maticEr~ty c~fth~ pc~rlfcslic~ c>r ~~x~carc custtrtn~~e~ ind~x ~a~ac~e u:p of'bl.e~c~eci M~rrall ldy~aac,h Treasu~/~~€~r~~:.y i;nc~ics~~. 'T"~sW invc~trn~:~t ~r€~~t°a~t ~h~Il ~ee~ to augm~~t r~t~;~ c>~`r~tuz~ ~~c~~~ this t~r~;slat~lc~, cotxsi~ient ~ritl~ ~t;~al reyt~-~~:ti~ns ~nc3. ~ru~~n~ inv~:s~~n~t~t ~ri~ciple~. ~n a diver~iii~:c~ ~~so~°tfc~li€~, m~~s~c~ lc~sse~ are inevit~.bie an€i rc~u~t bc~ ccr~si~~rec~ uXithix7 t:he cc~x~t~xt ~f~i~ t~v~r~ll ~ac~~°tfc~li~a. 4~~. ~e~ponsi~i~lity a~ad +~:~ntrt~i 4-5-1 .~rut~iaritr~ tr~ i~ve~t Autllaricy tc~ m~~~a~~ thc ~'ity ~~~ve:~trncnt }~XCa~r~r~ x~ c~~riv~ci ~'i°vr~ ~ resc~I~.itic~z~ uf the C;it~. 'T`kt~s~ ~euthc~r~~~~ ~ry ~~i~ re~~lutic~n ar~ de~i~r~~t~:~ as I~a:~test~r~ent t~f~Ger~ af tl~~; ~ity, ~d, i~ ~~r~,~~~~t~c~~~ witt~ the Ir~v~stt~~nt ~'or~~~nitt~, ar~: r~s~on~ible; f~ar i~vestrnant ~ccisic~~as a~d ~ctivzti~s. ~-11 i~~v~st~r~~nt tr~n~~cti~an~ ~nust lae acknc~~ric.d,~uci l~y a, sic~~n~t znvestz~~cnt a~~ccr besides t~~ c~~~e vv~s~ xniti~:lec~ the tr~sa~,t~on. All wir~ t~~r~~fer~'n,ust ~ae ~}~prcav~~ l~~ ti~c~ inv~~~z~~~nt~ c~ffieer~. The C~ity reserve~ ~e ri~~t tt~ cc~~t~act ~ith ~~ cxtern~l inv€~st.z~ac~~~t ~dvisory firxn to zn~z~~~e th~: inv~~t~~~r~t ass~t~, a~~c~ tt~c resa~lting r~sc~lt~tic~n ~~vii~ ~rant. invesiznent ~.lztl~ori~~tic~~s tca th~; ~~ntr~cl~~ I:irrn. 'T`he ~~ ~~sancc ~ira~ct~ar ~~~Ll c~t~ikali~h writt~:n. pr~~:.c+~ur~:s fvr t~~ ~~cr~t~~i~y ~ftlac: i~zvest~nent prc~gr~~r~ cc~nsist~nt';~ith thi4 Tn~Fa.st~~a:nt ~c-[~~:~r. 4-5-2 ~iondi~n~ r~quir°~~~nfslSt~r-dard of c~re Each ofthe a~.t1:h~~:-c.~~E inv~~tt~nu.nt c>6'~cc:rs s~all. b~: a k~~c~d~~ ~rra~~cayc~:, ~.l[ ~~rticipa~~ts irx tl~~ i~~v~stment ~arc~c~~s ~h~~ll act r~;sp+~nsib~~ a~ custc~cli~~~s caf'the ~u~lic trust ~n~ s~iall ~x~r~i~e t}~~ jud~~a~~~xt ax~d car~, ~~n~~rprevail~n~ circ:urrz~tanc:es, t~at ~~ru€~~~xt ~rers~-n wc~crl~ ~~.ercis~ ir~ th~ r~.~~z~~~~ez~t ~f the per~an's c~v~n af f~irs. 4-5-3 Est~~ilis~rr~~i~t t~f I~t~rnal +~t~nfrals 'T`l~e Ii~nanc~ ~ircctc~~° i~ resp~~zs~b~u ~~r istabli~~ixy~ a~ad ~n~~r~tair~xx~~ ~n iz~tcrn~.l co~~trc~l strttctur~ d€~~i~r~ecf tc~ ~ns~tre th~t tl~e ~t~~cts ~~~'t1~~ ~r~tity ar~ ~rot~°ctec~ frc~n~ lcass, 8:hef`t, ~r rni~~~~, `I"~i~: ir~t~rr~~l ccaz~trc~1 ~truutu~~: ~halt ~r~ cle~i~nec~ tc~ ~rovide reasocaable assa~r~~~c~. tl~at tl~e crb~ectivcs a.re rnet. 'I"l~e c€~nc~~t c~fre;as~a~af~le a.ssurance :reev~;~ai~e:~ tl~~t ( l) tt3~ ca~t cz:(' a cc~~trc~l shc~~z~~ n~t e~ce~~ the b~:ne~its li~ely tc~ be deriv~d, ant~ (2) tlse vaM~~~tic~n ~af`cc~sts ~~ad b~nc(it~ r~q~tir~,~ e~tirr~ates ar7ci juci~xn~:~ts ~-y ~~~~z~g~rz~~nt. ~-5-4 ~t~ndard ~f l~~hic~ City s~~ff it~vcalved in t~i~ invc.~tn~ent prc~ccs~ sh~ll refr~xn f~rc~m pcrs~a:nal ~usincs~ activity thaE ~;c~~zl~ cc~nfli~°t ~rith ~rc~~.~er executz~a~ ~f t~~ ir~v€~~tz~~nt ~ro~;r~.z~~, c~r ~vhiclY ccsuld i~zpair t~~ ability tc~ ~nake irnpartial ~ravest~a~nt d~a;i~ie~ns. ~~;ity staff s.hall di~cl~asc tc~ t~e C"ity a3~y ~~aterial .i~~t~re~t~ ~~z tir~s c~r businesses th~t cuz~~~,~ct i7~~~res~rient ~~z~~.t~~°s with th~, City> a~cl ~~ey s~aall f~hcr c~is~;~ase ~SCasztic~n~ that cu~,~lc~ b~, rclatcc~ la th~ pcr(°c~rs~~axsce e~~`thc C'it~ ~~c~r~tfo~it~. Cii~ ~taff ~l~atl 1q ~i of Univex°si Park T~~~~ - Cr~vestr~n~i~t PoEic ~u~ac~r~iri~t~ t~eit ~~r~~n~~ i~i~~,~nc:i~I r>rar~saetic~n~ te~ t~c~s~ ~~t~~ ~'iiy, part~c°ula~°lv ~~ith re~~r~ tc~ the't~~i~~ ~~' }~~rcha~~;~ ar~c~ ~~1~~. Ar~ inv~~t~nc~~t c~tf~i~~~ +~ft~~; ~i9.y ~r11c~ h~~ ~~~s~rsur~~l bc~si~~s~ ~~t~ti~n~~ti~ ~~it:h an t~rg~n~~:~tis~n ~~el~irs~; te~>~e~[ ~z~ ~~vcStmG~~t t~ t~1e ~°ity s~xa~l'fll~ a~ta~ean~~t ~i~~lc~si~~~ t~~t ~S~r~~~~~ bu~ir~c.R~~ int~rest. An i~~vest~~~t~t s~~~ZCer'wrY~c~ is t°s~l~t~d witl~i~~ t~~~ ~~c~nc~ ~~~r~;c ~ay ~f'~'i~i~y c~r cc~~1~~n~~~~~Xty to ~ ix~cii~ic:~~.x~l ~~~~i~a~ t~ ~;~11 ~xn iz~~estr~ie~t #c~ t~e ~~t~ ~h~il :~zi~; a ~tater~~ent disclo~~t~~ ~~S:~t ~elatic~~~~Zip. .~. ~t~t~:n~ent r~~uir~~c~' ~n~~:.r this su~a~cetio~~ r~~u~t b€~ filec~ ~~~~~ tl~~ T`~x~s E~thi~~ (::c~x~rr~i~sicr~~ a~~ L~c ~~vernin~ be~dy af't~e ~"it~. ~~~-~ "~"r~:i~~n~ a;~~ E~uc~ti~~ I~~ ~ccc~r~ia~~c~: ~it~ thc~ Fubli~ ~~.u~~s I~cfc,~tz~ae~~t ~~t (~:"~a~ter 22~6, Tex~~.~ Governr~~~~tt ~"o~~}, tl~~ cE~~x~ma:terl t~~~estrr~cr~t C~f~`tc~~zs„ €~r ~~a~s~ ~~er~c~r~~r~l ~~,~thc~rirc~ tc~ ~x~u~~t~ inve~tn~e~t tr~r~~~c~ia~~~~, zn~st ~tt~n~ ~aer~~dic i~~ves~~e~t tcainizz~. ~tate l~w ~°eq~,ure~ t~at tr~ti:~~i~~~ r~l~tin~ t~ i~v~;~~ment ~~.spc~~zsibi~iti~~ ~nust b~ prc~vi~ed ~~ ~~s: i~ac~c~~erz~~~t ~c~urc:e, suc~ as thc T~xas ~u~xci.pal ~:~~a~ue; ~u~;~ ~"~~h°al T~~:as Cc~~~il af t~c~ve~rn~nt~, ~~r th~: t.~~i~~:r~it~ ~f Nc~rth 'T"e~~s C`eni:er far Publi~ ~tan~~c~~c~xt, c~r a~ ~.p~S~c~~X~~ by the C;ity ~'l~~~a~;~,r., P~r~~a~i~lel ~~.itl7c~rizet~ ic~ cxecut~, c~r ap~r~sv~ z~v~ast~~~:~t t~~~~~~,etic~ns a~~ust rce~iv~ at ~ea~t ~0 ~~s~rs c~f ar~v~stz~~:~zt trai~ain~ vvat~lir~ c.~,c~ t~~rca-year ~erzc~c~. ~~~~~~ ~~~~~~te~ in~e~tr~~~,nt c~t~ic~r~ n~ust ~tt~in at ~cast 1 C~ hc~urs c~f in~truutxv~ r~~a~i~a~ t~ ~lae c~tt~iie~r'~ re~ps~nsibility ~.~c~er the .~~t ~itl~i~t 12 zz~c~~t~~ ~#"-t~~ ~.~sr~rnin~ in~~~tn~en~ dt~ties, 4-~-6 inv~st~r~c~r~i:'C;~a~~~ittee ~~n Inv~~trn~nt ~'~~~rnittec t~ati is car~x~rase~ c~t tk~e ~~~~z~k~~r~hi~- c~f` t~c ~~ira~x~c~: ~h~vi~e~a~ C~sr~~z~~~tec~ sk~all bc ~st~blis:h~;ci ic~ r~~~~rrnin~ i~v~~~n~~:nt ~~;~ic~.e~i~e~, ~era~r~l 5tr~it;~i~s, ~~~d ~a~~~i~~r ~erfc~rr~zance. Th~ ~~mr~~i~~e ~~~a~1 n~~~t ~~~,u~rt~;rl~ ia re:v~c~~r ~-~:~'f'c~rrn~anc~, ~tr~.t~~~, anc~ pra~cedr~r~s, ~"la~ l~t~~es~e~t C;c~xnr~.i~c€~ ~~.~Il in~;.lucl~. in it~ ~eli~s~r~tici~ s~zc~~ ti~pics ~~: p~~~~aa~,c~~: r~~~rts. ~~°c~z~c~znic c~~tl~~c~k, pc~rtfc~li~ c~xve~~i F'~cati~n; n~~turi~y st~°uct~xre> ~~~t~:~~ti~l risl~ tcs t~c: ~ity fti~nc3.~, ~.t~thc~r.i~cd l~rc~~C~z~ a~c~ ~~:a~~:r~;, ~~c~ the tar~et r~te ~~"r~t~.u~ ~tt~ tl~c i~rvestrnc~~t ~a~rt~c~lia~. , 4-(~. ~~p€~a°tin~ In~~~:~lrne;nt pcr('c-t°~r~~~zce ~s c.~ztti~~i~~ly r~c~~zit~r~~ ~r~c~ e~~l~at~a~ 1~~ ~:~e: I~i.n~~~~°~: l~i~cts~r. Tlle I:nv~strne~~t C)~'f~~ex(s~ ~~ill prs~vicic~ ~~.tai~s~d r~p~ri~, ~~ rec~~a.ir~l ~'v the ~ublic Fi~nd~ Inve~tment ~ct {C'k~~~stc~~ ?~~~5, 'T"~~~~ Cic~~~.r~~~n<.nt C~u~,e, ~ectic~~~ 2'?~~i.U~~} fcar t~e ~i~ un ~ ~~rt~rly b~.~i~. 'I"he ~'i~~ance ~-irect.c~r s}~~1~ ~ubrz~it ~ ~a~~~~s~~~ i~t~~~tr~cz~t r~~~rt si~~~e~ Eav t17~ is~v~stzat~~t o~~°~r~. Th~ rcA~csrt sh;~11 ir~e~~r~c a. ~~ccinct ~na;na~er~s~nt ~urnrn~y thal provi~i~~ ~ c~~~,r }~~e;t~ar~ c~f'the ~t~t~~s o~'t~e c~urre~t ~n~~~t~n~~t pc~rt~~lic~ ara~ t~~ansac:tacar~~ ~a~~ ~v~~' i~~ l~st c~~art~;r. 'r"hi~ naana~exn~~~t s~~r~~~~ry r~vill bt pre~~r~~ irz a m~:n~~.r vr~hicll v~ ill ~~1~~% t1~t~ ~`it~ tc~ ~~t°~~taiz~ wh~th~r i~~e~~`~neni a~tiviti~s cl~it~~ ti~e r~;pc~rti~~ peri«~1 ~av~ c:ar~!'~~n~.d to tl~~; lnvcstn~e~at F~~licy. `~~Iz~ r~z~~~a~~~aent ~~-~t~~«~rv s11~I1. t} surn~~~ri~,~ c~a~°t°c~~t t~-arku~t c°;~ntiiticsns, c~c~sr~~an~ic ~~ve~t~p~n~~~ts ~r~~ anti~:;i~~;tcd. ic~ve5~c~~t c~n~iti~n~x ~j ~~.~rzvn~ri~e inv~st~ne~t s~'~t~~i~~ ~~t~slc~yc~ it~ the; me~st r~€;ent ~uarte.r, :~) r~e;~~rib~ t~ac~ ~s~rtt`c~~i~s i~~ tern~s ~t ix~v~~t~-ncnt sc~c~,~riti~s, r~aat~~,ritie~, ri~k. 11 Cit crf Uni~~ersi l'ark "T~~~t~ w In~°~st~e~t ~'o~ic eharacteristics, acl~ aver~~;~ retu~n. f~sr th~ s~~;~~rt€~r; 4) c~utli~e ccsnfc~rn~~~~ce ta the restrictiot~~ of the Pc~1i~:y i~ th~ ~~~~ csfc:li~er~ificz~:t~~rn ~d terr~~ c~#'ttaatua~ity; 5) cUn~~~are t~e pez°fc~r~n~~c°:e csf`C;~ty'~ ~:rt~c~lic~ to a.pgacopri~tc bc~~chr~aark~ ~s ~etea~~i~~ec~ k~y t~~ Inv~csl~~-t,nt C~`~n~a~ittce. ~A.citi~ti~anally, tl~~ c~u~rt~rly ~i~a~Gial rc}~c~rt ~vill incl~:~~e t~ae fc~ll~*~;in~ dei«~il~;d infor~nation: 1:' ~A.1~~~~r~g c~f inc~ividual sec:u~ities h~ld at the ~:~c~ of t~e rep~riin~ peria~~. "~. Unr~ali:~ec~ ~air~~ ~-r'l~r~~~s rest~lti~~~ frc~~z~ a~a~r~i~tion c~r c~c~areciatic~~~ bv listi~~~ the be~irxr~iz~~ ~ncl ~nc~ing bcsc~k ~~c~ mairket value c~~'securities f~or t~e ~aer~~sc~, 3. A~€ditzcr~~s ~.~d c~at~~es tca the ~~~rkc~t v~l~~ ci;crr~~~ t~~e ~ericr~. 4. 4~per•a~e ~vci~hted yield tc~ m~ii.zrity c~r tcat~l r~tu~nn ~cr~"c~rrrz~~~c~ afthe ~c~c~tf'r~l_ic~ utz ~~tit~ inv~stx~n~nts ~~ com~saz°e~ t~ applicabl~ ~-ent~hn~~r.k~. 5, Li~;tin~; ~f inve~tixzc~~ts by i~~turit~ ~.at~, ~, Th~: percen#~~e af'tl~e total ~ao~kf~liaa whic°~ c::a,~;h ty~ae; <si invcstrn~nt repre~e.~~ts. ?. S~at~n~~;nl: a~#~c~rnplianc€: ~f't~te C:it}r i~vc5t~~nt ~~ts~tfolic~ vvit~ Stat~: Law a~d the i.nves~r~~tzt strat~:~y ~ra~i ~ol~ey appruve;cS by ~e Ci~. Within f~t3 c[ays c~:(.'t~~e end ~st t~e fz~c~l y~:ar, ihG ~inar~c~, I)ar~ctc~r or th~ ~:z~ve~t~nent ~dvisc~ry firr~r sh~.ll ~r~s~~t ~~ ~~~ual ~~p+~rt c~n the: inv~~t~a~r~t prc~~s~~r~a ~n~i irav~:.~t~nt;nt acti-~~ity. The r~p~'~t ~7~~ ~~ pres~nt~;c~ a~ a coixl}~c~nent c~f th~ ~c~urth €~~rart~r r~~~ri t~ the C' ity. 4-'7. +~arnpli~nc~ Au~it In conj~~nction wit~ it~ ~t~a~zal :tin~:~c°ia~ audit, ih~, Cit~ s~~ll perforr~ ~ cs~n~}~liar~ce a:t~d.it o#'mar~a~ernent co~t~°c~l~ c~~a anvcstaa~.ex~ts ~n~ adk~er~;ncc tc~ t~i~: ~'iEy's t~ta~li~he~. 1i~ve~tn~er~t Policies. T~~ res~.xlts ~a£~h~; au~it s.hall b~ rep~arted t~ the l~a~fes~7ent C°ornnni~te~: ~~c~ th~ ~c~vwr~~ing ~ac~dy c~f the ~.~'ity, 4-~. +~ertzticatiflr~ tl cc~py of t~i~ investrr~e;r~t P~3i~y ~ill l~e prc~vicle~ t~ t~~ ~e~tic~r ~a~~a~~n~ent ~f ar~y ~~ank, cleal~r, ~z~ca~er car inv~~t~~e~-t at~~%i~;c~r wa~ishi~Y~ ka tra~s~ct i~~zve~t~e~t bu~ii~es~ ~iircctly witt~ tl~e City in order that it is apprise~ c~~ the inve~tn~ent ~r~als ~rfth~ C°ii~+. ~3cf~sr~ business is tr~ns~c;t~:€~ with i:4~c~ f~rrn, ~ cc~ti~catit~n (.~ttachrnc~a~ 11.) ;r~ust k~~ ~i~net~ by a senic~r m~rnb~~• c~fa iirrn. ~1~oul~ th~: C~ity cc~r~traet r~vit~ ari e~te~~~l in~=~strn~x~t ad~isor tc~ exec~.7te th~ cntity'~ i~'ve~~n~~nt s~r~~te~y, incluciz~~~; th~ c~~~+~ti~.iican and cxecraiican of ~r~vest~ie~t tr~~~~acti~ar~~, a r~~~t~a~in~ c~f`f~ccr ~af thc i~~vestmcnt ~~vi~c~rgY fim~ may si~;~~ t~e 92 ~'itr~ €~f l~ ~ir~~rs~tv ~'~~1~ "~ ~~~~ - l~evest~nent l~~alic ~ ~~ritt~:n ce~i~'iea.tz~~a in l~~u ~~`th~ bra~~i~rlciealer fi~ns. T~xis ce~°ti~'i~~tiur~ ~n~;st ~ie in~:~ude~ a.s ~raa~tt c~f the invc~~#~~r~t a~vis~r~ cc~ntr~ct. §.JE~~.. H..A~~.~ ~• S'1~~~~A~~.a.1Wi ~~A.d'):i.JA.7.~ ~ . ~ . Thi~ i~s:vestrn~~~t ~'c~1ic~ ~c~r #~ae City ~f C.1n~~xer~ity 1'ar~, '~'uxas i~ h~riby ~dc~~~tec:~ as c~f th~, 4th c~a~ c~l L)ecer~b~r, ~~~"~. ~TT~ST: ' ~ ta~ty , a;cr~;tary '~ ~ ~`~t T a~" Univer~~tv 1'~rl~ Tex~~ w I~nv~stment ~olic r ~4'T"'IC~CI:IMENT 1 1~1` VE~7'11~~+ ~f T"~~+ P~inf.~it .r~.C',ICl'~l t)"W~:;~ ]~C~l~:l~'II:N't` ~~ ~ckn~~l~d~ment by ~~ve~tar Th~ undersigned investr~rerst ~~fiicer esf th~: Invest~s~ ~'°l~v~~~ment ~7ffic~r~) hereby ackr~cs~l~dgesr re~res~rrt~ and agrees c~n ia~half ~sf th~ ~nv~~tc~r t~~t; {i) T~~ Inr€~~ten~nt ~1~ie~r (~~ h~s been duly d~si~n~t~d lay a~icia[ ~~tican a~f the ~~u~ming ~cady '~f the in~~sfi~r ta ~ct ~s its In~~~trr~~nt ~~Fi~r purs~aarat tc~ the Act„ {b~ i~ v~~t~c~ ~vifih full p~~~r ~nc~ auth~arity ~and~r th~ A~f and csth~r ~ppli~al~le ~aw to ~~tgage ir~ ir~v~~tm~nt ~ctivitie~ ~a~ beh~lf ~a~ th~ ~nv~~~+ar, and (~) is duly authcsriz~~ to ex~c~t~ thi~ ~~kn~~vl~dgrr~e~~ csn I~~~aE~ o~ th~ Inv~st4r, (iv} !n c~anne~tia€~ with ~ny investrr~ent tr~n~~~tian b~~w~~n t~r~ ~usin~~s Ur°g~niz~titar~ ~~s~[ the I~v€~st~sr; th~ ~~~i~ess f~r~~r~i~~ti~n is r~c~t re~pc~~sible fcar a~s€arin~ carr~pki~ttce ~r'itk~ thca~~ asp~cts t~f th~ Env~~t~~:nt P€alicy aver whict~ tl~e E3usin~ss ~?r~~r~iza~~n ha~ na ~or~trol or kn+~~l~d~~, ~~rc~ a~ re~trictia~s a~ tc~ diversity ~n€~ ~~~r~g~ maturity, or whi~k~ require ~n interpretat[on of suk~j~ctive inue~tm~;r~t ~t~rrda~d~, 15 Cit of C~r~iwersi , F'ar °]Cexa~ ~ Inv~~tm~ent A~licv (Attach Resum~s ~f A€I T~e ~~ave F'er~ans) 1 a. i~hict~ e,# th~ ak~~ve persar~n~l have re~d aur g~vernm~nt ir€vestment p~alicies°? 11. P[eas~ ic[~:nti~ c~ur rnast d€rectly ~:arr~par~b[• puks6ic 5~c~ar ~fi~r~t~ in c~ur gea+~ra~hicaE ~r~~. ~ntity: Ccsnt~ct Pers~rr; Tr(~ph~r~~ No.. ~lient Since: 12. Hav~ ar~y of yc~ur cli~nts ever su~tained a lass ran ~ secur~ties tr~ns~ctican ~rising frs~n~ ~ misunderst~nding ~r misr~pr~s~nt~tion of the risk ch~racteri~tic.~ of fhe ins#rurr~~nt`~ lf sa, ~xpl~in. ~ 13. Hav~ any caf yc~u~ public s~ctcsr ~[ients ~u~r re~ca~Ced tcs' yrsur frm, its ~~cers ~ar employees, car~lfy ar in wrifirtg, that they sustained a Ics~s (in ~ single y~ar) ~xc+~cdin,~ 10 perc~nt af csrogin~l pu~ch~se ~ri~ an any indivia~u~l s~curikY purch~sed through yaur frm? (Explain.} °[4. Mas ycsur firm ~v~r b~~n suL~ject to ~ re~ulatt~ry +~r ~~telfederal ~~er~cy inv~stig~tion fqr a(I~ged imprc~per, fraud~lent, disrepuka~le r,r ~rnfair ~ctiv~ki~s r~lat~c~ ta th~ sale crf securities"? Have ~ny af ya~r ~mpic~y~~s ev~r be~n sca inv~stigated? (I~xplain.} Ci j of ~.Tniv~^~sikv P'~rk `~"e~~s ~:~~vc~st~enl 1'atic 15. Has ~ puk~lic se~tear client eu~r cl~imed, irr vdr~itin~, that ~caur ~rrt~ ~as respr~nsihle i~or inv~sfinent Ic~~s~s'~ ~~xpl~~n.~ 1~. Pl~as~ inciud~ s~m~l~s ~af res~~r~h repcark~ 'khat y+au~' fir~ ~~~ul~rfy prcavides tc~ pu~lic ~e~tor cl~ents. 17. Pl~as~ expl~in yaur r~armal custady an+~ deliv~r~ prcac~~s. t~`l~c~ audit~ #h~se fiduci~ry syste rr~s7 98. Please prcavid~ s;~~ti~c~ci financi~6 st~ternents and akh~r i~t~ic,~t~sr~ rec,~arding y~aur firm"s c~~ait~lizatiar€. 19. aescrikae tP~~ ~~pital (ine ~~sd trading limits th~t sup~~s~limif f~r~ c~fFic~ #~r~t wauld ~sandu~t busines~ wifi~ ~~r ~~avemt'€~tent. 2t1. V1~h~t training ~vaulc~ yau pr~~rid€~ t~a our ~mp(ay~~~ ~nt~ fnves~~~nt ~ffcer~7 ~1. Has yaur firrr~ cxsnsiskently crsmplied with the ~'ed~r~E #~~erue ~ar~k`s capit~l ac~eq~~cy guidelin~s? A~ raf t#~€s r~~t~, da~s yc~ur ~rm c.~rnpfy vv€t~ t~e gu€delines°? Nas yaur ~~ait~l positian ever fafl~:n sP~r~r~? By what f~ct~sr {1;~, ~, etc.j dca~~ yaur firrn pres~nkfy e~x~°~er3 the ~pit~# ~dnq~acy guid~lir€e's m~~sure af ri~l~? ln~iu~~ ~~r~i~i~c~ dacum~nt~tian ~~ ys~ur capita! ad~qu~cy a~ m~~sured by the ~~elera~ Reserv~ st~r~darc~~. 22. Dr~ yau ~~r~icip~t~ in ih~ S,l.P.G. inss~ranc~ ~Src~r~rra'~ i~ rscat, ~xpl~in why. 23. ~1Phat pcsrtfalia infc~rrn~~ii~n dc~ ycau r~quir~ ~rarn ys~ur cli~r~t~'~ 24, Whak repc~~s, tr~ns~ctions, canfirrrr~t~€~ns ar~d p~p~r fr~il ~iE6 w~ r~cei~e? 25. ~nclc~se a carr~~E~t~ ~ch~duE~ caf f~es and ch~rs~es f~ar v~nc~u~ fr~ns~ct,i~rts, 26. Hcawv r~~any and v~t~t pc~reent~ge c~f ycrur tr~ns~~ir~rts fa€I~d last rnanttt? Lask y~~r? 27. i~escr~b~ the pre~uti~ar~s taken tay ycsur firrr~ t~o ~r~c~tect th~: ir~t~r~st of th~ public when d~~ling with r~~ivern~rse~t~l ~gerrcie~ as inv~stcars. 2~3. With wh~?r~r~ ~re ~rsu dain~ l~u~in~ss in the Austin ~r~~"? 2~, Ar~ yau re~sr~sentirr,~ ~ par~nt cc~~ac~ration or a subsidiary af an~a~er corpor~tian°? IF ycsu ~t~~ a~~k~sidiary, wr€il yeau Furi7ish ~u~ite~i fin~nci~l st~t~rrt~n~ an y~aur par~~t c€arpc~ratican ~s weli as ycsur subsidi~ry? 3U. ~~sr all err~~la~y~s lisfi~d in p~rt 9~bov~, ~alease prcavi~e r~s~m~s f~sr ~;:~ch ~nd ~vitt~in eac~~ resur~n~ in~9ud~ ih~ ~mp~r~y n~rr~es of frsrrn~:r er~~aE~yers. 31, Pr+~uid~'banki~s~ r~f~rences and -nclude s~ffic~r cant~~t r~arn~~ ~nd telephc~ne nu€~~~rs. 32. C~o yau giu~ p~rf~ct~e! ~ecurity int~r~st in securitie~ un~er re~urcha~~: agr~:ernen#~? ~t~AtVGI~L, ~`!C~ CR17~RM;A ~, Grc~wth in currerst asset~ ~nd current liab~lities mu~t l~~ par~ll~l. ~, T€at~l 1i~bilities, ~s a~ulti~le af e~~ik~, must b~ I~ss th~n ~ r~ti~a ~f ~C~.1. 3. 1"he t~t~l caf ~eci~riti~~ ~~rn~c~ ~nc~ s~curifi~s p~ar~ha~~d unc9~r ~greemen~ t~ r~scfl (reverse r~~~as) rnu~t b~ gr~at~r th~n the tcat~l €~f sh~r~-terr~ laan~ and sec~arikies sald under agre~r~n~nt~ ta repc~rch~~e {repos}. 4. Equi~y, ~s a percentag~ af tatal assets, ~nust b~ 5`% s~r mc~r~. 5. C,~rowt~t in retai~€e~ ~~~ting~ rraust exc~~d 7°!~ fcar the Ias~ tw~c~ year~. ~. Equiky gc~awth ~ust i~e par~lle3 tc~ a~set ~~d li~bili~y ~r~kvth. 7. T~~; ~auditar's opinic~n rnust ~e ursqu~l€fied. C;i % at Unrv~rsitv ~ark rC"e~~~ - I~v~st~eut ~'~ali~: A~kn~wledgm+~nt kay B~r~ine~~ Or~aniaa~i€rn In reli~nc~ up+~~ th~ for~~~ing ,°Ac~n~wl~dgm~r~t by In~r~stc~r,,' the undersigned qu~iified represer~t~tiv~ ~f the ~u~ine~s 4rgani~aticar~ (66C~u~lif~e~ R~pr~~entativ~"} acknowled~e~, repr~~~nt~, ~nd ~~rees can beh~lf ~afi t~~ Busines~ C~rg~niz~tian that: ({) The CPu~Ni~ied '~+~pre~~~t~tive (a) is regr~~er~;d urt€~er t~e ruies a# the N~tic~n~l A~s~~iat~c~n ~f ~~curi~ies i~e~lers, ~b~ i~ tl~~ du~y ~ppaintec~ and acting c~ffi~~r c~f th~ B~s~n€~ss C3rgani~~ti4r~, hc~lr~inc~ t~~ o~fic~ set fc~~#h undeerte~th it~ ~ame b~lr~~, ~nd (c~ is duly at~t~rvt`~~~d tc~ ~xecute this C~r~ificatinr~ can b~h~lfof'th~ ~~asir-ess Or~~n~z~tic~n, (ii) Th~ Q~ali~~+~ R~pr~s~ntativ~ h~s recei~red ~nd reviewe~ t~e Investmenfi Policy furnis~~ci ~y th~ lnv~;~~msnt C~ffic~r, (iii} Th~ Busine~~ (~r~~r~iz~ti~n wall provid~ th~: Inv~stment c~f~ic~r with p~riodic ~cc~iunt an~i +~ther re~san~k~l~ req~~~ted infc~rm~tion th~t will assisfi th~ Inv~~tr~n~nt ~3ffic~r in c~rrying c~ut t~i~ ~r her r~spransibility to ARIGFA&+ ~IIYGJLE//~A~R~ 0.A4iW#..k51~.R16~ WW[k~A~LGBFI YKELFI CIE~ ~€€YCyti?~IIt4`.`v~6E1 r~~~R.+~y PaAdReF ~~~~ ~t,G ~4A~WF IS.e~~ VF~QA WIfwGA1'i.f9 W YB'~~ E ILA~ ~~'~ ~68 L~.`i I6 FM4'rJ~~[ II IYE:ia7LF716'r8 4~~ V~fl flir/ ~~r..111 thc~se on th~ ~~kac[~~:d €i~t, which may b~ amended "~r~rrr~ time ta time by rnutu~l ac~reernent c~f the Ir~v~st~ar a~d the ~3usin~~~ ~rg~rti~atie~n. UA-LII~I~~ ~~P~~~ENTATIVE ~'irm: ~~me: ~ig~~ture: Titl~: ' C~ate: ~[ ~ C:it crf Uni~~rsi Park Te~,~s -~n~~st~nen~ Fo1ic ' 1fi