Specifications include, but are not limited to: This Policy shall apply to the investment and management of all funds of the Town under its control, other than those expressly excluded herein or by applicable law or valid agreement. This Policy shall not supersede the restrictions on investment and use applicable to any specific fund and, in the event of any conflict between this Policy and the requirements of any fund subject hereto, the specific requirement applicable to such fund shall be followed as well as all other provisions of this Policy other than those in conflict. The Employees Deferred Compensation Agency Fund is excluded from coverage under this Policy. This Policy also requires the formal adoption of an “Investment Strategy Statement” that specifically addresses each of the Town’s fund groups. Each Investment Strategy Statement will describe its objectives concerning: a) Suitability of investment type b) Preservation and safety of principal c) Liquidity d) Marketability of each investment e) Diversification of the portfolio f) Yield In order to make effective use of the Town’s resources, all monies shall be pooled into one investment bank account, except for those monies required to be accounted for in other bank accounts as stipulated by applicable laws, bond covenants or contracts. The income derived from this pooled investment account shall be distributed in accordance with the Town’s internal procedures. II. OBJECTIVES The Town’s principal investment objectives in order of priority are: 1. Conformance with all Federal regulations, State of Texas statutes and other legal requirements including the Town Charter and Town Ordinances, including this Policy 2. Preservation of' capital and the protection of investment principal 3. Maintenance of sufficient liquidity to meet anticipated disbursement and cash flows 4. Diversification to avoid incurring unreasonable risks regarding securities owned 5. Attainment of a market rate of return equal to or higher than the performance measure established from time to time by the Chief Financial Officer of the Town which is commensurate with the acceptable risk and liquidity objectives of this Policy.