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4. Transparency — The City shall operate its portfolio in a transparent manner, making its <br />periodic reports both available for public inspection and designed in a manner which <br />communicates clearly and fully information about the portfolio, including market pricing, adjusted <br />book value, yields, and CUSIPs of various securities. <br />III. Performance Measurement <br />The City's investment portfolio shall be designated with the objective of exceeding specific <br />benchmarks after investment related expenses (as defined in Exhibit 1, herein), over trailing <br />three and five year time periods. The indices are similar in composition to the portfolio and <br />therefore comprise a minimum standard for the portfolio's rate of return. The portfolio will be <br />monitored relative to a peer universe. The peer universes that will be utilized will be provided by <br />the investment consultant. Over a three and five year time period, the investment managers, and <br />total fund, should be in the top 40% of their peer group. The investment managers shall seek to <br />achieve returns and peer rankings above these thresholds, consistent with risk limitations <br />identified herein and prudent investment principles and practices. <br />IV. Standards of Care <br />1. Prudence - The standard of prudence to be used by investment officials shall be the Prudent <br />Person Rule and shall be applied in the context of managing an overall portfolio. City personnel, <br />acting in accordance with this investment policy and exercising due diligence shall be relieved of <br />personal responsibility for an individual security's credit risk or market price changes, provided <br />deviations from expectations are reported to the City Manager in a timely fashion and the liquidity <br />and the sale of securities are carried out in accordance with the terms of this policy. The City <br />Manager has the discretion to report any material events to the City Commission. The Prudent <br />Person Rule states that: <br />"Investments should be made with judgment and care, under circumstances then prevailing, which <br />persons of prudence, discretion, and intelligence exercise in the management of their own affairs, <br />not for speculation, but for investment, considering the probable safety of their capital as well as <br />the probable income to be derived from the investment." <br />2. Ethics and Conflicts of Interest — The Finance Director and other authorized personnel shall <br />refrain from personal business activity that could conflict with the proper execution and <br />management of the investment program, or that could impair their ability to make impartial <br />decisions. These investment officials shall disclose to the City Manager annually, in a written <br />statement, any material interests in financial institutions with which they conduct business with <br />the City. Employees and officers shall subordinate their personal investment transactions to those <br />of the jurisdiction, particularly with regard to the timing of purchases and sales. They shall refrain <br />from undertaking personal investment transactions with the same individual(s) with whom <br />business is conducted on behalf of the City. <br />3. Delegation of Authority - Authority to manage the investment program is granted to the <br />Finance Director and other authorized personnel. Additional authorized personnel include any <br />other person or position approved by the City Manager. The City may seek professional advice <br />