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PORTFOLIO DIVERSIFICATION <br />The City will diversify investments across maturities, security type and institution to avoid <br />incurring unreasonable risks. <br />Except for the Local Government Investment Pool, no more than 25 percent of the City's total <br />investment portfolio will be invested with a single fmancial institution. <br />Maximum Percentage <br />Diversification by Instrument ofPortfotio <br />U.S. Treasury Obligations 100% <br />(Bills, notes, bonds, strips) <br />State of Oregon Investment Pool 100% <br />U.S. Government Agency and Instrumentality Securities <br />of Government Sponsored Corporations 50% <br />Time Deposit and Savings Account 50% <br />Bankers' Acceptances (BA's) 25% <br />Issued by a qualified fmancial institution whose short-term letter of <br />credit rating is rated in the highest category by one or more nationally <br />recognized rating organizations. <br />Corporate Indebtedness Al or AA or better by S & P; or P1 or Aa or better <br />by Moody's, or an equivalent rating by any nationally recognized rating agency. 25% <br />~ Oregon Issuers: Al or A or better by S & P; or Pl or Aa or better by <br />Moody's, or an equivalent rating by any nationally recognized rating <br />agency. <br />Repurchase Agreements 25% <br />Oregon State and Local Obligations 25% <br />Obligations of the agencies and instrumentality's of the State <br />of Oregon and its political subdivisions that have along-term <br />rating of A or better, or rated in the highest category for short-term <br />municipal debt. <br />Regional Debt Obligations 25% <br />Obligations of California, Idaho and Washington and political sub-divisions of <br />those states if obligations carry along-term rating of AA or better or are rated <br />in the highest category for short-term municipal debt. <br />2005 MWMC Financial Plan -Appendix IV Page 47 <br />