Page 21 - Yucaipa Valley Water District

Director Memorandum No. 17-001 Page 3 of 9

STATEMENT OF INVESTMENT POLICY
January 3, 2017

INTRODUCTION

The purpose of this policy is to provide broad guidelines to the District Investment Officer, who is
charged with the responsibility for the investment of funds for the District. All investments by the
District shall be governed by State law and by this policy.

The District Investment Officer is responsible for administering the District's investments. In
furtherance of this responsibility, the District Investment Officer shall issue and administer detailed
Investment Instructions which may change periodically and which will implement this Investment
Policy. The investment of bond proceeds will be further restricted by the provisions of relevant
bond documents.

POLICY GUIDELINES

1) Prudence

The standard of prudence to be used by the District Investment Officer shall be the "prudent
person" standard and shall be applied in the context of managing an overall portfolio. All persons
investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds
shall act with care, skill, prudence and diligence in order to safeguard the principal amount of the
investments and maintain the liquidity needs of the District.

2) Objectives

The primary objectives, in priority order, of the District's investment activities shall be:

A. Safety of Principal. The investments shall be undertaken in a manner that seeks
to ensure preservation of capital in the portfolio.

B. Liquidity. The investment portfolio will remain sufficiently liquid to enable the
District to meet its cash flow requirements.

C. Return on Investment. The investment portfolio shall be designed with the
objective of attaining a market rate of return on its investments consistent with the
constraints imposed by its safety objective and cash flow requirements.

3) Delegation of Authority

The management and oversight responsibility for the investment program is hereby delegated to
the District Investment Officer who shall monitor and review all investments for consistency with

Yucaipa Valley Water District - January 3, 2017 - Page 21 of 120