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Page 25 of 37 <br />(J) the portfolio managers of the pool; and <br />(K) any changes or addenda to the offering circular. <br />(d) An entity by contract may delegate to an investment pool <br />the authority to hold legal title as custodian of investments <br />purchased with its local funds. <br />(e) In this section, "yield" shall be calculated in accordance <br />with regulations governing the registration of open-end management <br />investment companies under the Investment Company Act of 1940, as <br />promulgated from time to time by the federal Securities and Exchange <br />Commission. <br />(f) To be eligible to receive funds from and invest funds on <br />behalf of an entity under this chapter, a public funds investment <br />pool that uses amortized cost or fair value accounting must mark its <br />portfolio to market daily, and, to the extent reasonably possible, <br />stabilize at a $1.00 net asset value, when rounded and expressed to <br />two decimal places. If the ratio of the market value of the <br />portfolio divided by the book value of the portfolio is less than <br />0.995 or greater than 1.005, the governing body of the public funds <br />investment pool shall take action as the body determines necessary to <br />eliminate or reduce to the extent reasonably practicable any dilution <br />or unfair result to existing participants, including a sale of <br />portfolio holdings to attempt to maintain the ratio between 0.995 and <br />1.005. In addition to the requirements of its investment policy and <br />any other forms of reporting, a public funds investment pool that <br />uses amortized cost shall report yield to its investors in accordance <br />with regulations of the federal Securities and Exchange Commission <br />applicable to reporting by money market funds. <br />(g) To be eligible to receive funds from and invest funds on <br />behalf of an entity under this chapter, a public funds investment <br />pool must have an advisory board composed: <br />(1) equally of participants in the pool and other persons <br />who do not have a business relationship with the pool and are <br />qualified to advise the pool, for a public funds investment pool <br />created under Chapter 791 and managed by a state agency; or <br />(2) of participants in the pool and other persons who do <br />not have a business relationship with the pool and are qualified to <br />advise the pool, for other investment pools. <br />4/18/2018 <br />