Investment Policy – Annual Review and Proposed Changes Page Two
2. Add ‘time of purchase’ benchmark under Section VIII. Diversification relative to both instrument and issuer. Current b. Policy Statement 8. The MDTA will diversify its holdings by security type and institution to avoid incurring unreasonable risks due to excessive concentration in specific instruments, financial institutions or issuers. Proposed a. Policy Statement 8. The MDTA will diversify its holdings by security type and institution to avoid incurring unreasonable risks due to excessive concentration in specific instruments, financial institutions or issuers. Diversification standards must be met at time of purchase. Declines in portfolio size may cause diversification limits to be exceeded post purchase, so investments should be structured within limits for an expected average portfolio size. Investment sales to maintain longer term diversification may be considered with consultation of the Investment Committee, but short term and small variances resulting from a portfolio decline do not represent policy violations or necessitate sales.
The key sections of the policy are noted in the table below.
Key Elements
Section
Security Type Limitations
5 6 8
Maturity Limitations
Diversification Issuer/Sector Reporting Requirements Policy Violations & Downgrades
14
1
RECOMMENDATION Management requests approval of the revised Investment Policy. ATTACHMENT • Investment Policy 2026 – DRAFT
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