Page 425 - FortWorthFY22AdoptedBudget

manage market risk.

4. Yield

The investment portfolios shall be designed with the objective of attaining a
reasonable market rate of return throughout economic cycles, taking into
account the investment risk constraints of safety and liquidity needs. The
benchmarks for the portfolios shall be designed for their comparability to the
expected average cash flow patterns of the portfolios. The investment
program shall seek to augment returns above the applicable benchmark
consistent with risk limitations identified herein and prudent investment
policies and practices.

V. Strategies

To the extent feasible under prevailing market conditions, the City will strive to
maintain and manage two portfolios in which funds are pooled for investment
purposes: a Short-Term Portfolio and a Long-Term Portfolio. The Short-Term
Portfolio would be used to manage that portion of the City's assets that, based
on analysis of historic cash flow patterns, is projected to be needed within the
five year planning and forecast horizon to meet the City's cash flow needs. The
Long-Term Portfolio would be used to manage that portion of the City's assets that,
based on analysis of historic cash flow patterns and current projections, is not
needed to meet the City's cash flow needs within the five-year planning and
forecast horizon and is therefore available and suitable for longer term investment.
In general, the Investment Officers shall manage investments to ensure that if an
unexpected cash need arises, the City will be able to liquidate sufficient investments
to meet its needs without incurring adverse consequences. When prevailing market
conditions do not offer adequate returns on long-term investments to compensate
for the corresponding interest-rate risk and loss of liquidity, the Investment Officers,
in consultation with the Investment Advisor, are authorized to focus investments in
the Short-Term Portfolio and forgo adding to the Long-Term Portfolio.

Operating within appropriately established administrative and procedural
parameters outlined in this Investment Policy and Strategy, the City should pursue
optimum financial rewards in both portfolios, while simultaneously controlling
related expenditures. Cash management functions shall be conducted in a manner
that promotes the best financial and administrative interests of the City. Except
for money in certain restricted and special funds, the City commingles its
available cash and investments across all funds to maximize investment earnings
and to increase investment efficiencies with regard to pricing, safekeeping and
administration. The strategies used are intended to ensure compliance with the
statutes and address suitability of the investments, preservation of principal,

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