Page 9 - City of Moreno Valley Invstment and Cash Management Program
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The City’s Investment Policy
        AND GOVERNMENT CODE






                The investment types allowed by both Government Code and the City’s Investment Policy are
                very conservative and focus on preserving principal. These governing documents allow the
                portfolio to hold only fixed income securities (bonds) and exclude riskier types of investments
                such as equities (stocks) and other more exotic types of securities. The combination of the
                conservative securities mix along with the fact that markets have been at all-time historic lows
                since 2008 have resulted in the yields that are currently being experienced by the portfolio.

                The City monitors the performance of the portfolio against market benchmarks that have a
                security mix similar to that held in the City’s portfolio.  The City’s portfolio characteristics can be
                described as holding a mix of Treasury’s, Government Agencies and Medium Term Corporate
                Notes and when the portfolio is compared to the benchmarks the portfolio’s performance is
                generally in line with those benchmarks.





        HISTORIC YIELD COMPARISON





        6.0%                   1 Yr Treas              2 Yr Treas              5 Yr Treas             LAIF
        5.5%

        5.0%
        4.5%
        4.0%

        3.5%
        3.0%
        2.5%
        2.0%
        1.5%

        1.0%
        0.5%
        0.0%
              Jul-01  Oct-01  Jan-02  Apr-02  Jul-02  Oct-02  Jan-03  Apr-03  Jul-03  Oct-03  Jan-04  Apr-04  Jul-04  Oct-04  Jan-05  Apr-05  Jul-05  Oct-05  Jan-06  Apr-06  Jul-06  Oct-06  Jan-07  Apr-07  Jul-07  Oct-07  Jan-08  Apr-08  Jul-08  Oct-08  Jan-09  Apr-09  Jul-09  Oct-09  Jan-10  Apr-10  Jul-10  Oct-10  Jan-11  Apr-11  May-11  Jun-11  Jan-12  Apr-12  Jul-12  Oct-12  Jan-13  Apr-13  Jul-13  Oct-13  Jan-14  Apr-14  Jul-14  Oct-14  Jan-15  Apr-15  Jul-15  Oct-15  Jan-16  Ap












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