Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
MARCH 19, 2026
Subject
SUBJECT: INVESTMENT POLICY
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
CONSIDER:
A. ADOPTING the Investment Policy in Attachment A;
B. APPROVING the Financial Institutions Resolution authorizing financial institutions to honor signatures of LACMTA's Officials in Attachment B; and
C. DELEGATING to the Treasurer or their designees, the authority to invest funds for a one-year period, pursuant to California Government Code ("Code") Section 53607.
Issue
ISSUE
Section 53646 of the Code requires the Board to review and approve the Investment Policy annually at a public meeting. Section 53607 of the Code requires the Board to delegate investment authority to the Treasurer annually. In addition, Section 10.8 of the Investment Policy requires the Treasurer to submit the Financial Institutions Resolutions to the Board annually for approval.
Background
BACKGROUND
Metro's Investment Policy allows for operating funds to be invested consistent with Board approved investment policy guidelines. The primary objectives of the Investment Policy, in priority order, are to maintain the safety of principal, to provide liquidity, and to achieve a return on funds invested. The Investment Policy, last updated on March 27, 2025, is updated annually to incorporate changes deemed necessary to meet Metro's primary objectives and to ensure alignment with any changes in the California Government Code.
Discussion
DISCUSSION
Changes to the Investment Policy have been made to be consistent with the California Government Code, including an amendment to:
i. Revise to lower Metro's Investment Policy minimum credit requirement for Asset-Backed Securities and Mortgage Pass-Through Securities from "AAA" to "AA" to align with California government code minimum credit requirement of "AA",
ii. Adjust the minimum "A" rating requirement for Medium-Term Notes to require only one N...
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