§ 11.5-36. Objectives.

(a)

The primary investment objective of the town is to ensure that the current and future obligations are adequately funded in a cost effective manner. The goals of this investment policy shall be safety of principal, liquidity, and yield.

(b)

Preservation of capital and the realization of sufficient total return to ensure the ongoing financial integrity of the funds are essential. Preservation of capital encompasses two (2) goals:

(1)

Managing the risk of loss of principal for the fund as a whole.

(2)

Managing the erosion of principal value through inflation.

(c)

The town shall establish internal controls for any derivatives in use to ensure that the risks inherent in derivatives are adequately managed. For purposes of this policy, "derivative" means any financial instrument created from or whose value depends on the value of one or more underlying assets or indexes of asset value.

(Ord. No. 1996-4, 6-11-96)