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Investment Policy for Tax-Exempt Bond Proceeds
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| Investment Objectives:
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A major responsibility of the Manager of Treasury Services is to invest
funds, not
immediately needed for payment to bondholders, project construction, and/or
the operations of the University, in order to enhance the University's
investment income. Permissible investment obligations are consistent
with Connecticut State Law, and in the case of bond proceeds, are
defined in the Indentures. In keeping with these fiduciary
responsibilities, all investment decisions made by the Manager of
Treasury Services consider the risk adjusted return, and are subject to
the following constraints: safety, liquidity, indenture and legal
requirements, tax considerations, and other constraints.
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Safety:
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The single most important objective of this investment program is the
preservation of the
principal of those funds within the portfolio.
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Maintenance of Liquidity:
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The portfolio shall remain sufficiently liquid to enable it to meet all
debt service and
project spending requirements which might be reasonably anticipated.
Individual funds
and accounts are invested upon consideration of each fund's permissible
horizon relative
to the slope of risk adjusted return.
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Return:
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The portfolio is managed in such a fashion as to generate an efficient
risk adjusted return
subject to the above constraints through budgetary and economic cycles.
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Arbitrage Management:
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Tax-exempt bond funds will be invested subject to the applicable arbitrage
considerations including the Tax Regulatory Agreements. It is important to preserve
exceptions where permissible. The Office of Treasury Services will calculate
any arbitrage rebate on the revenue bonds resulting from such an investment.
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