Page 12 - City of Moreno Valley Invstment and Cash Management Program
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Pooled
CASH
Long-term Focus
Utilizing funds that are not immediately needed for operations or projects, this component of the portfolio
works to enhance the yield on the overall portfolio while still operating under the City’s investment
policy objectives. This portion of the portfolio is used to purchase debt securities, in compliance with
the approved investment list, generally with a maturity window between seven months and five years.
Because the City’s liquidity concerns have already been addressed this portion of the portfolio can
place more emphasis on achieving slightly higher yields. This part of the portfolio is currently managed
by third-party investment advisors whereby the portfolio is actively managed. Active management
is a dynamic management approach by which securities are actively traded (bought and sold) in an
attempt to take advantage of movement in the financial markets in order to achieve gains or profits
on investments when it is to the advantage of the portfolio. Balances in this part of the portfolio are
generally around $140 million.
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