The new Orange County investment policy statement establishes safety of principal, and
liquidity, as the primary objectives of the fund, with yield as a secondary objective. More
specifically it prohibits borrowing for investment purposes (ie, leverage), reverse repurchase
agreements, most kinds of structured notes (such as inverse floaters) and derivatives such as
options. The same document bans the treasury oversight committee and other designated
employees from receiving gifts, and obliges them to disclose economic interests and conflicts of
interest. The county treasurer now has to submit monthly reports to the investors and other key
county officers that contain sufficient information to permit an informed outside reader to
evaluate the performance of the investment programme.
The new Orange County investment policy statement establishes safety of principal, andliquidity, as the primary objectives of the fund, with yield as a secondary objective. Morespecifically it prohibits borrowing for investment purposes (ie, leverage), reverse repurchaseagreements, most kinds of structured notes (such as inverse floaters) and derivatives such asoptions. The same document bans the treasury oversight committee and other designatedemployees from receiving gifts, and obliges them to disclose economic interests and conflicts ofinterest. The county treasurer now has to submit monthly reports to the investors and other keycounty officers that contain sufficient information to permit an informed outside reader toevaluate the performance of the investment programme.
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