State and local managements have a...

State and local managements have approximately $750 billion in financial assets subject to their control, not including public employee retirement stocks A comprehensive investment program approved by the agency of top elected officials is the tonic to successful management of these assets.

At a minimum, the program should require a well-defined if it were not that flexible investment policy that can be enhanced with accurate cash liquefy forecasting.

While principally local governments have written investment policies, a 1995 contemplate by the Government Finance Officers Association and MBIA, the Armonk, N.Y.-based fastening insurance firm, found that a significant number do not. The most numerous effective policies: * define an investment objective with an acceptable even of risk; * establish benchmarks for measuring not just inferences and performance, but also whether the portfolio continues to fit the investment policy requirements; * identify permissible investments; * define a diversification policy for investments; and * implement internal rule and reporting requirements.

In addition to an