Presentation by Edward Jones Investments regarding the

AGENDA ITEM# 13
SUN VALLEY GENERAL IMPROVEMENT DISTRICT
DATE:
7-3-14
TO:
Board of Trustees
FROM:
Darrin Price – General Manager
SUBJECT: Presentation by John Spears of Edward Jones Investments.
John Spears of Edward Jones Investments is the District’s broker for its
investments. I have asked Mr. Spears to come to the District’s board meeting to
give an update on the how the investments have been doing, the District’s
current investment strategy, and potential future strategies.
Attachments:
· A summary of the pre-meeting that staff had with Mr. Spears as well as
the portfolio analysis.
· NRS 355.170 & NRS 355.171
Respectfully submitted,
Darrin Price
General Manager
~ljw~1u ~uuca
200 Ridge S~reec Suite 100
Reso, NV 89501
(775) 323-8800
•
AGENDA ITEM 13
ATTACHMENT
Fi~ia1 Advisor
EdwardJones
Sunm~ary of the Sun Valley mtg. of 5/21/14;
In attendance
Darren Price, Carol Bratcher. Bill Short and
John Spears
-
All allowable investments under chapter 355 of the NV revised
statutes were reviewed. The conceneue was that the strate9y of
investing in ~s laddered out to 3 years should be continued but to
consider extending the maturities to 5 years on a percenta
of the
total ~~count to increase the investment return.
If approximately half the account ($1, 870, 000) was in COg with
five year maturities, the premium, or additional revenue on those
assets at todays rates, would be approximately 1% (100 basis points)
over CDs with one to three year maturities. If implemented this
could generate additional revenue per yeax of approximately $18, 000.
Future rate changes would, of course, affect thee returns.
AGENDA ITEM# 13
ATTACHMENT
Portfolio Analysis
John W Spears
Financial Advisor
(775) 323—8800
May 21, 2014
Prepared for
Sun Valley General Improvement
Account Number:•
EdwardJones
MAKING SENSE OF INVESTING
EdwardJones
Portfolio: How well diversified are your investments?
Portfolio Objective: Preservation Of Principal
John W Spears
Page 1 of 1
Prepared for: Sun Valley General Improvement
Account Number:
Financial Advisor
May21, 2014
(775) 323—8800
Aggressive
Suggested
0—0%
Growth stocks with high valuations
Aggressive stock mutual funds
Actual
0.000o
Industry sector mutual funds
Country or regional mutual funds
Value
$0.00
Stocks with unusually high dividends
Growth
Suggested
0—0%
Stocks of rapidly growing companies
Growth mutual funds
Actual
0.00%
Growth UIT5
Variable annuities with growth subaccounts
Value
$0.00
Growth and Income
Suggested
0—0%
Common stocks with dividends
Equity mutual funds with dividends
Actual
0.00%
Real estate investment trusts (REIT5)
Balanced mutual funds
Value
$0.00
Convertible bonds
Equity UITs with dividends
Variable annuities with growth—and—income subaccounts
Income
Suggested
0—100%
CDs
Bonds (corporate, government, municipal)
Actual
99.63%
Fixed annuities
Bond mutual funds
Value
$3,732,682.81
Bond UIT5
Aggressive income
Collateralized mortgage obligations (CMOs)
Cash
Insured Bank Deposits
Money market accounts
Life insurance cash value
Portfolio total
‘4.
Suggested
Savings accounts
:
~
0—100%
Actual
0.37%
Value
$13,892.75
-.3.
$0.00
$3,746,575.56
This asset allocation recommendation is based upon the quarterly meeting of our Investment Policy Advisory Committee. If you would like more information about the committee and its recommenda.
Building Your Portfolio Strategy Report. This Portfolio Analysis is not an account statement and is intended for illustrative purposes only. Income projections are based on currently avail
I
investment holdings at Edward Jones, nor should you rely on it for cost basis information or to prepare tax returns. To review your investment holdings, please refer to your account statement o
for vendor and client assets held outside of Edward Jones or for the accuracy of the data relating to those assets. If there are any discrepancies or concerns regarding this report please ca
review your account online at www.edwardjones.com/accountlink.
•
I
I
EdwardJones
Portfolio: Diversification Bar Chart
Portfolio Objective: Preservation Of Principal
John W Spears
Financial Advisor
(775) 323—8800
Page 1 of 1
Prepared for: Sun Valley General Improvement
Account Number:
May21, 2014
100%
90%
—-—-
—--—---
80%
—-—-—-——
~-—---——
—-—-—--
70%
---—----—-—
—-•---—-
—-——~~——-—--—-———-—------
60%
~-—----—
——
—-----—
50%
——-
—
—
——
40%———-——------—
—
—
—
—
-
—-—--————______
-—--
--—--—----——-—---—--—
-—---——
—___
______
___
-
—---—-
____—
—•---—-~
___________
_____——
30%
20%
10%
0%
Cash
Life Insurance
Income
Growth &
Income
Growth
Aggressive
International
Investment Category
Cash and Life Insurance
Equity
Actual
~ Suggested Range
$13,892.75
0.37%
0—100%
$3,732,682.81
99.63%
0—100%
Growth and Income
$0.00
0.00%
0—0%
Growth
$0.00
0.00%
0—0%
Aggressive
$0.00
0.00%
0—0%
Income
Portfolio total
$3,746,575.56
International
$0.00
0.00%
0—0%
Equity
$0.00
0.00%
0—0%
Aggressive Income (within Income) ~
$0.00
0.00%
0—0%
This asset allocation recommendation is based upon the quarterly meeting of our Investment Policy Advisory Committee. If you would like more information about the committ
Building Your Portfolio Strategy Report. This Portfolio Analysis is not an account statement and is intended for illustrative purposes only. Income projections are based on currently ava
investment holdings at Edward Jones, nor should you rely on it for cost basis information or to prepare tax returns. To review your investment holdings, please refer to y
for vendor and client assets held outside of Edward Jones or for the accuracy of the data relating to those assets. If there are any discrepancies or concerns regarding
review your account online at www.edwardjones.com/accountlink.
EdwardJones
Porffolio: Assets Analysis
Portfolio Objective: Preservation Of Principal
John W Spears
Financial Advisor
(775) 323—8800
Held
By
Quantity
Page 1 of 2
Prepared for: Sun Valley General Improvement
Account Number:
Investment Name
Coupon
Rate
Maturity
Date
—— Current——
Price
Value
_________________
May 21, 2014
——Original——
Quantity
Price
YTM/
YTW
Amount
Invested
Amount
Withdrawn
Initial
Activity
Annual
Income
Current
Yield
Dollar Change
Amount Percent
Cash and Cash Alternatives
J
13893 MNY MKT FUND INVESTMENT SHARES
Total
0.0100
1.000
13,893
13893
1.000
13,893
0
$13,893
1
0.0100
$1
0.01%
÷0
÷0.00
Life Insurance Cash Value
Income
J
J
J
157000 COMPASS BANK CD
17000 COMPASS BANK CD
45000 STATE BANK OF INDIA CD
0.80%
0.80%
1.00%
06/02/14
06/09/14
06/23/14
100.010
100.016
100.042
157,016
17,003
45,019
157000
17000
45000
100.000
100.000
100.000
0.80%
0.80%
1.00%
157,000
17,000
45,000
0 05/29/12
0 06/07/12
0 06/27/12
628
68
225
0.80%
0.80%
1.00%
+16
÷3
÷19
+0.01%
÷0.02%
+0.04%
J
J
J
228000 SOVEREIGN BANK CD
31000 BANK OF CHINA CD
208000 KEY BANK CD
0.75%
0.70%
1.00%
06/27/14
07/07/14
07/07/14
100.025
100.026
100.059
228,057
31,008
208,123
228000
31000
208000
100.000
100.000
100.000
0.75%
0.70
228,000
31,000
208,000
0 06/25/12
0 07/02/12
0 06/30/11
855
109
1,040
0.75%
0.70°!
1.00°o
÷57
+8
+123
÷0.02%
+0.03%
+0.06%
1.35%
10/14/14
100.290
33,096
33000
100.980
0.79%
33,323
0.80%
1.00%
0.95%
0.95%
12/15/14
03/23/15
04/13/15
04/13/15
100.137
100.302
100.287
100.287
48,066
201,607
35,100
40,115
48000
201000
35000
40000
100.000
100.000
100.000
100.000
0.80%
1.000
0.95%
0.95%
48,000
201,000
35,000
40,000
1.00%
04/13/15
100.323
45,145
45000
100.000
1.00%
45,000
0.50%
0.55%
0.50%
0.50%
0.85%
1.00%
1.20%
04/17/15
05/08/15
06/15/15
06/19/15
07/13/15
07/20/15
07/27/15
99.954
99.999
99.893
99.891
100.229
100.372
100.567
170,921
107,999
101,891
195,786
31,071
110,409
51,289
171000
108000
102000
196000
31000
110000
51000
100.000
100.000
100.000
100.000
100.000
100.000
100.070
0.50%
0.55%
0.50%
0.50%
0.85
1.00%
1.18
171,000
108,000
102,000
196,000
31,000
110,000
51,036
0
0
0
0
0
0
0
J
J
J
J
J
J
33000 ALLY BANK CD
48000
201000
35000
40000
HUNTINGTON NATIONAL BANK CD
STATEBANKOFINDIACD
ALLY BANK CD
AMERICANEXPRESSCENTURIONBK
45000 DISCOVER BANK CD
ALLY BANK CD
DISCOVER BANK CD
GECAPITALBANKCD
SYNOVUS BANK CD
BMW BANK OF NORTH AMERICA CD
AMERICAN EXPRESS CENTURION BK
SALLIEMAEBANKCD
1.000
0 01/04/13
223
1.35°o
—228
—0.68%
06/12/12
03/14/12
04/09/12
10/09/12
384
2,010
333
380
0.80°c
1.00°c
0.95°o
0.95%
+66
+607
+100
+115
+0.14%
+0.30%
+0.29%
+0.29%
0 04/05/12
450
1.00%
+145
+0.32%
04/15/13
05/06/13
06/12/13
06/17/13
01/07/13
10/15/12
09/06/12
855
594
510
980
264
1,100
612
0.50%
0.55%
0.50%
0.50%
0.85%
1.00%
1.19%
—79
—1
—109
—214
+71
÷409
+253
—0.05%
÷—0.00%
—0.11%
—0.11%
+0.23%
+0.37%
+0.50%
0
0
0
0
J
J
J
J
J
J
J
171000
108000
102000
196000
31000
110000
51000
J
J
215000 BMWBANKOFNORTHAMERICACD
195000 SALLIE MAE BANK CD
1.00%
1.10%
09/21/15
10/05/15
100.400
100.500
215,860
195,975
215000
195000
100.000
100.000
1.00%
1.10%
215,000
195,000
0 09/17/12
0 10/01/12
2,150
2,145
1.00%
1.09%
+860
÷975
+0.40%
+0.50%
J
J
102000 STERLING SAVINGS BANK CD
95000 DISCOVER BANK CD
0.85%
1.10%
01/04/16
07/18/16
100.150
100.200
102,153
95,190
102000
95000
100.000
100.000
0.85%
1.10%
102,000
95,000
0 06/27/13
0 07/12/13
867
1,045
0.85%
1.10%
+153
÷190
+0.15%
÷0.20%
WhIe the information presented in this report is believed to be reliable, its accuracy is not guaranteed. It is not intended to replace official records such as transaction confirmations and periodic accoun
cost basis information or to prepare tax returns. It has been created as a courtesy and it may include information about assets that are not held at or that may not have been verified by Edward Jones. The
adjusted for commissions, fees or related expenses. Edward Jones has attempted to estimate the annual income and annual yield that might be expected from the portfolio being presented.T
dividend information and may vary from actual income earned by the account and that might appear in other reports provided by Edward Jones. If there are any discrepancies or concerns regarding thi
department at 1—800—803—3333 or review your account online at www.edwardjones.com/accountlink. Additional important disclosures, can be found at www.edwardjones.com/estimated © 201
Held By — C—Client J—,Jones V—Vendor
Tax
Info
Intl
EdwardJones
Portfolio: Assets Analysis
Portfolio Objective: Preservation Of Principal
John W Spears
Financial Advisor
(775) 323—8800
Held
By
Page 2 of 2
Prepared for: Sun Valley General Improvement
Account Number:
May 21, 2014
Investment Name
Coupon
Rate
Maturity
Date
109000 SOUTH ATLANTIC BANK CD
87000 BANK LEUMI USA CD
0.75%
1.00%
09/23/16
09/27/16
99.420
99.999
86,999
87000
100.000
100000 GE CAPITAL RETAIL BANK CD
1.10%
11/15/16
100.100
100,100
100000
100.000
0.75%
1.00%
1.05%
12/20/16
01/03/17
03/27/17
98.981
99.613
99.300
98,981
111,567
245,271
100000
100.000
J
J
J
J
100000 CARTHAGE FED SVGS & LN ASSN CD
112000 BANK OF BARODA CD
247000 GOLDMAN SACHS BANK USA CD
148000 GE CAPITAL RETAIL BANK CD
216000 PRIVATEBANK & TRUST COMPANY CD
112000
04/04/17
04/17/17
99.155
98.860
213,538
J
155000 BERKSHIRE BANK CD
1.00%
0.90%
0.90%
04/28/17
98.846
153,211
Quantity
J
J
J
J
—— Current ——
Price
Value
Total
108,368
—— Original ——
Quantity
Price
109000
100.000
YTM/
YTW
Amount
Withdrawn
Initial
Activity
109,000
0 12/13/13
1.00°o
87,000
1.10%
100,000
0.75%
100.000
247000
100.000
148000
216000
155000
100.000
100.000
100.000
0.90%
Annual
Income
Current
Yield
818
0.75%
0 09/20/13
870
0 11/13/13
1,100
100,000
0 12/18/13
1.00%
112,000
1.05%
—0.58%
1.00°o
—1
+—0.00~~
1.10%
+100
+0.10%
750
0.76%
—1,019
—1.02%
0 12/27/13
1,120
1.00%
—433
—0.39%
247,000
0 03/21/14
2,594
1.06%
—1,729
—0.70%
1.00%
148,000
0 04/02/14
1,480
1.01%
—1,251
—0.85%
0.90°
216,000
0 04/14/14
155,000
0 04/29/14
1,944
1,395
0.91%
0.91%
—2,462
—1,789
—1.14%
—1.15%
$3,732,683
$29,898
0.89%
$3,746,576
$29,899
0.88%
Aggressive Income
Growth and Income
Growth
Aggressive
Other
Portfolio Total
Dollar Change
Amount Percent
—632
146,749
0.75%
Amount
Invested
YTM/YTW: Value displayed is the lesser of yield to maturity or yield to worst call.
Income/DIvidends can be decreased or totally eliminated at any time.
While the information presented in this report is believed to be reliable, its accuracy is not guaranteed. It is not intended to replace official records such as transaction confirmations and periodic ac
cost basis information or to prepare tax returns, It has been created as a courtesy and it may include information about assets that are not held at or that may not have been verified by Edward Jones. The va
adjusted for commissions, fees or related expenses. Edward Jones has attempted to estimate the annual income and annual yield that might be expected from the portfolio being presented. These estima
dividend information and may vary from actual income earned by the account and that might appear in other reports provided by Edward Jones. If there are any discrepancies or concerns regarding thi
department at 1—800—803—3333 or review your account online at www.edwardjones.com/accountlink. Additional important disclosures, can be found at www.edwardjones.com/estimated02011 E
Held By — C—ClIent J—Jones V—Vendor
Tax
Info
Int
NRS: CHAPTER 355 PUBLIC TNVESTMENTS
-
?age I 01
AGENDA ITEM# 13
ATTACHMENT
NRS 355.170 Authorized investments; disposition of interest.
1. Except as otherwise provided in this section and NRS 354.750 and 355.171, the governing body of a local
government may purchase for investment the following securities and no others:
(a) Bonds and debentures of the United States, the maturity dates of which do not extend more than 10 years after the
date of purchase.
(b) Farm loan bonds, consolidated farm loan bonds, debentures, consolidated debentures and other obligations issued
by federal land banks and federal intermediate credit banks under the authority of the Federal Farm Loan Act, formerly 12
U.S.C. §~ 636 to 1012, inclusive, and §~ 1021 to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §~2001 to
2259, inclusive, and bonds, debentures, consolidated debentures and other obligations issued by banks for cooperatives
under the authority of the Farm Credit Act of 1933, fonnerly 12 U.S.C. §~ 1131 to 1 138e, inclusive, and the Farm Credit
Act of 1971, 12 U.S.C. §~ 2001 to 2259, inclusive.
(c) Bills and notes of the United States Treasury, the maturity date of which is not more than 10 years after the date of
purchase.
(d) Obligations of an agency or instrumentality of the United States of America or a corporation sponsored by the
government, the maturity date of which is not more than 10 years after the date of purchase.
(e) Negotiable certificates of deposit issued by commercial banks, insured credit unions or savings and loan
associations.
(0 Securities which have been expressly authorized as investments for local governments by any provision of Nevada
Revised Statutes or by any special law.
(g) Nonnegotiable certificates of deposit issued by insured commercial banks, insured credit unions or insured savings
and loan associations, except certificates that are not within the limits of insurance provided by an instrumentality of the
United States, unless those certificates are collateralized in the same manner as is required for uninsured deposits by a
county treasurer pursuant to NRS 3 56.133. For the purposes of this paragraph, any reference in NRS 356.133 to a “county
treasurer” or “board of county commissioners” shall be deemed to refer to the appropriate financial officer or governing
body of the local government purchasing the certificates.
(h) Subject to the limitations contained in NRS 355.177, negotiable notes medium-term obligations issued by local
governments of the State of Nevada pursuant to NRS 350.087 to 3 50.095, inclusive.
(i) Bankers’ acceptances of the kind and maturities made eligible by law for rediscount with Federal Reserve Banks,
and generally accepted by banks or trust companies which are members of the Federal Reserve System. Eligible bankers’
acceptances may not exceed 180 days’ maturity. Purchases of bankers’ acceptances may not exceed 20 percent of the
money available to a local government for investment as determined on the date of purchase.
(j) Obligations of state and local governments if:
(1) The interest on the obligation is exempt from gross income for federal income tax purposes; and
(2) The obligation has been rated “A” or higher by one or more nationally recognized bond credit rating agencies.
(k) Commercial paper issued by a corporation organized and operating in the United States or by a depository
institution licensed by the United States or any state and operating in the United States that:
(1) Is purchased from a registered broker-dealer;
(2) At the time of purchase has a remaining term to maturity of no more than 270 days; and
(3) Is rated by a nationally recognized rating service as “A-i,” “P-I” or its equivalent, or better,
~ except that investments pursuant to this paragraph may not, in aggregate value, exceed 20 percent of the total portfolio
as determined on the date of purchase, and if the rating of an obligation is reduced to a level that does not meet the
requirements of this paragraph, it must be sold as soon as possible.
(I) Money market mutual funds which:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and
(3) Invest only in:
(I) Securities issued by the Federal Government or agencies of the Federal Government;
(II) Master notes, bank notes or other short-term commercial paper rated by a nationally recognized rating
service as “A-I “P-i” or its equivalent, or better, issued by a corporation organized and operating in the United States or
by a depository institution licensed by the United States or any state and operating in the United States; or
(III) Repurchase agreements that are fully collateralized by the obligations described in sub-subparagraphs (I)
and (II).
(m) Obligations of the Federal Agricultural Mortgage Corporation.
2. Repurchase agreements are proper and lawful investments of money of a governing body of a local government
for the purchase or sale of securities which are negotiable and of the types listed in subsection 1 if made in accordance
with the following conditions:
(a) The governing body of the local government shall designate in advance and thereafter maintain a list of qualified
counterparties which:
(I) Regularly provide audited and, if available, unaudited fmancial statements;
(2) The governing body of the local government has determined to have adequate capitalization and earnings and
appropriate assets to be highly creditworthy; and
(3) Have executed a written master repurchase agreement in a form satisfactory to the governing body of the local
government pursuant to which all repurchase agreements are entered into. The master repurchase agreement must require
the prompt delivery to the governing body of the local government and the appointed custodian of written confirmations
of all transactions conducted thereunder, and must be developed giving consideration to the Federal Bankruptcy Act.
(b) In all repurchase agreements:
,“
http ://www.leg.state.nv.us/DivisionlLegal/LawLibrary/NRS/NRS-3 55 .html
7/3/2014
NRS: CHAPTER 355 PUBLIC INVESTMENTS
-
Page 2 of 3
(1) At or before the time money to pay the purchase price is transferred, title to the purchased securities must be
recorded in the name of the appointed custodian, or the purchased securities must be delivered with all appropriate,
executed transfer instruments by physical delivery to the custodian;
(2) The governing body of the local government must enter a written contract with the custodian appointed
pursuant to subparagraph (1) which requires the custodian to:
(I) Disburse cash for repurchase agreements only upon receipt of the underlying securities;
(II) Notif~,’ the governing body of the local government when the securities are marked to the market if the
required margin on the agreement is not maintained;
(III) Hold the securities separate from the assets of the custodian; and
(IV) Report periodically to the governing body of the local government concerning the market value of the
securities;
(3) The market value of the purchased securities must exceed 102 percent of the repurchase price to be paid by
the counterparty and the value of the purchased securities must be marked to the market weekly;
(4) The date on which the securities are to be repurchased must not be more than 90 days after the date of
purchase; and
(5) The purchased securities must not have a term to maturity at the time of purchase in excess of 10 years.
3. The securities described in paragraphs (a), (b) and (c) of subsection 1 and the repurchase agreements described in
subsection 2 may be purchased when, in the opinion of the governing body of the local government, there is sufficient
money in any fund of the local government to purchase those securities and the purchase will not result in the impairment
of the fund for the purposes for which it was created.
4. When the governing body of the local government has determined that there is available money in any fund or
funds for the purchase of bonds as set out in subsection 1 or 2, those purchases may be made and the bonds paid for out of
any one or more of the funds, but the bonds must be credited to the funds in the amounts purchased, and the money
received from the redemption of the bonds, as and when redeemed, must go back into the fund or funds from which the
purchase money was taken originally.
5. Any interest earned on money invested pursuant to subsection 3, may, at the discretion of the governing body of
the local government, be credited to the fund from which the principal was taken or to the general fund of the local
government.
6. The governing body of a local government may invest any money apportioned into funds and not invested
pursuant to subsection 3 and any money not apportioned into funds in bills and notes of the United States Treasury, the
maturity date of which is not more than 1 year after the date of investment. These investments must be considered as cash
for accounting purposes, and all the interest earned on them must be credited to the general fund of the local government.
7. This section does not authorize the investment of money administered pursuant to a contract, debenture agreement
or grant in a manner not authorized by the terms of the contract, agreement or grant.
8. As used in this section:
(a) “Counterparty” means a bank organized and operating or licensed to operate in the United States pursuant to
federal or state law or a securities dealer which is:
(1) A registered broker-dealer;
(2) Designated by the Federal Reserve Bank of New York as a “primary” dealer in United States government
securities; and
(3) In full compliance with all applicable capital requirements.
(b) “Local government” has the meaning ascribed to it in NRS 354.474.
(c) “Repurchase agreement” means a purchase of securities by the governing body of a local government from a
counterparty which commits to repurchase those securities or securities of the same issuer, description, issue date and
maturity on or before a specified date for a specified price.
[1:95:1945; 1943 NCL § 1987.01] + [2:95:1945; 1943 NCL § 1987.02]—(NRS A 1959, 36, 424; 1967, 275; 1969,
1087; 1971, 270; 1973, 1091; 1975, 268; 1979, 448, 1887; 1985,2110; 1989, 1260; 1991, 106,341,343; 1993. 211,2Z~,
2289; 1995, 1823; 1999. 1481; 2001, 598, 2296, 2327; 2003, 162; 2003, 20th Special Session, 281)
NRS 355.171 Additional authorized investments for counties, cities and school districts; exceptions.
1. Except as otherwise provided in this section, a board of county commissioners, a board of trustees of a county
school district or the governing body of an incorporated city may purchase for investment:
(a) Notes, bonds and other unconditional obligations for the payment of money issued by corporations organized and
operating in the United States that:
(1) Are purchased from a registered broker-dealer;
(2) At the time of purchase have a remaining term to maturity of no more than 5 years; and
(3) Are rated by a nationally recognized rating service as “A” or its equivalent, or better.
(b) Collateralized mortgage obligations that are rated by a nationally recognized rating service as “AAA” or its
equivalent.
(c) Asset-backed securities that are rated by a nationally recognized rating service as “AAA” or its equivalent.
2. With respect to investments purchased pursuant to paragraph (a) of subsection 1:
(a) Such investments must not, in aggregate value, exceed 20 percent of the total portfolio as determined on the date
of purchase;
(b) Not more than 25 percent of such investments may be in notes, bonds and other unconditional obligations issued
by any one corporation; and
(c) If the rating of an obligation is reduced to a level that does not meet the requirements of that paragraph, the
obligation must be sold as soon as possible.
3. Subsections 1 and 2 do not:
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NRS: CHAPTER 355 PUBLIC INVESTMENTS
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(a) Apply to a:
(1) Board of county commissioners of a county whose population is less than 100,000;
(2) Board of trustees of a county school district in a county whose population is less than 100,000; or
(3) Governing body of an incorporated city whose population is less than 150,000,
unless the purchase is effected by the State Treasurer pursuant to his or her investment of a pool of money from local
governments or by an investment adviser who is registered with the Securities and Exchange Commission and approved
by the State Board of Finance.
(b) Authorize the investment of money administered pursuant to a contract, debenture agreement or grant in a manner
not authorized by the terms of the contract, agreement or grant.
(Added to NRS by 2001, 597; A 2011, 1219)
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http://www.leg.state.nv.us/DivisionlLegal/LawLibrary/NRS/NRS-355 .html
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