Item No. 6c_attach . 
Meeting Date: May 22, 2018 
PORT OF SEATTLE 
STATEMENT OF INVESTMENT POLICY 
Exhibit A 
To Resolution No. 3748 
1.    POLICY 
It shall be the policy of the Port of Seattle (the "Port") to manage its investments in order to preserve
principal while maximizing income and maintaining liquidity to meet anticipated cash needs and to conform
to all statutes governing the investment of public funds. 
2.    INVESTMENT OBJECTIVES 
The primary investment objectives of the Port, in priority order, are as follows: 
1. Safety  Safety of principal is the foremost objective of the Port's investment program. Investments shall be
selected in a manner that seeks to insure the preservation of capital in the portfolio. This will be
accomplished through security selection, portfolio diversification, and maturity limitations, as more fully
described below. 
2. Liquidity  The Port's investment portfolio shall remain sufficiently liquid to meet all cash flow
requirements that may be reasonably anticipated. 
3. Yield  The portfolio shall be managed with the objective of attaining a market rate of return throughout
economic cycles, taking into account investment risk constraints and liquidity needs. Return on investment
is of least importance compared to the objectives of safety and liquidity. 
3.     SCOPE 
This policy covers all funds managed by the Port as reported in the Port's Annual Financial Report unless
specifically excluded by this policy. This policy does not apply to the Port's deferred compensation funds,
employee pension, health and welfare funds, or other funds managed by third party administrators. 
This investment policy does not cover any moneys collected and held by King County or the State of
Washington until such time as those moneys are remitted to the Port of Seattle. 
All investments shall comply with federal and state laws and this policy. Funds related to the issuance of
tax-exempt debt shall at all times be invested and otherwise treated in accordance with Internal Revenue
Service rules and regulations. 

4.    STANDARDS OF CARE 
Prudence - The standard of prudence to be used by investment personnel shall be the "Prudent Investor
Rule", and shall be applied in the context of managing the overall portfolio at all times: 
Investments shall be made with judgment and care, under circumstances then
prevailing, which persons of prudence, discretion and intelligence exercise in the
management of their own affairs, not for speculation, but for investment, considering,
in priority order, the probable safety and liquidity of their capital as well as the
probable income to be derived.

Investment personnel acting in accordance with this policy and exercising due diligence shall be relieved of
personal liability for an individual security's credit risk or market price changes, provided deviations from
expectations are promptly reported and appropriate action is taken to control adverse consequences. 
Ethics and Conflict of Interest - Officers and employees involved in the investment process shall refrain
from personal business activity that could conflict with proper execution of the investment program or that
could impair their ability to make impartial decisions. Investment officials and personnel shall disclose to
the Port's General Counsel any material financial interests in financial institutions that conduct business
with the Port, and shall further disclose any personal financial/investment positions that could be related to
the performance of the Port's portfolio. 
5.    DELEGATION OF AUTHORITY 
Authority to manage the Port's investment program shall reside with the Chief Financial Officer, appointed
Port Treasurer pursuant to Resolution No. 3476. The Treasurer shall be accountable for all investment
transactions and shall establish written procedures and internal controls designed to insure that the Port's
assets are protected from loss, theft or misuse. The Treasurer may delegate the day-to-day duties and
responsibilities related to the Port's investment program. 
6.    SAFEKEEPING AND CUSTODY 
All transactions involving authorized investments shall be settled on a delivery versus payment (DVP)
basis. All securities shall be held at the Port's safekeeping agent, or that agent's representative in New York
City, or the agent's account at the Federal Reserve Bank. 
7.    SECURITIES LENDING 
The Treasurer may enter into one or more contracts with the custodial banks or financial institutions, or any
one of them, holding the Port's securities for the lending of all or part of these securities to reputable brokers
and financial institutions to earn additional investment revenue or fees from such loans, provided that
collateral equal to at least 102% of the market value of loaned securities shall be continuously maintained. 
8.    FINANCIAL INSTITUTIONS AND SECURITIES DEALERS 
The Treasurer shall maintain a list of financial institutions and security broker/dealers authorized to provide
investment services to the Port. Firms eligible to provide such services must meet the following criteria: 
Financial Institutions 
Banks: The Port may make deposits and purchase CDs only from banks that are qualified public
depositories as determined by the Washington Public Deposit Protection Commission (PDPC). The
Treasurer shall monitor the net worth and financial condition of these institutions on an ongoing basis, and
may restrict and/or exclude any institution based on such evaluation. 
Approved Securities Dealers 
Primary Dealers: Security Dealers that can buy and sell Government Securities and deal directly with the
Federal Reserve Bank of New York. 
Secondary Dealers: The Port will transact securities with Secondary Dealers having an office in the State
of Washington, doing investment business with other public entities in the State, that have a minimum
capitalization of $10 million and retained earnings of $1 million.

Security broker/dealers engaged in investment transactions with the Port must have demonstrated knowledge
and expertise in public sector investing and shall certify, in writing, that the dealer has read, understands, and 
agrees to comply with this investment policy. Dealers shall also provide the Port with annual audited
financial statements. Should concerns arise regarding a dealer's financial condition, business practices, or
compliance with the Port's investment policy, the firm may be restricted from conducting business with the
Port at the sole discretion of the Treasurer. 
9.    AUTHORIZED INVESTMENTS 
In accordance with and subject to restrictions embodied in Revised Code of Washington (RCW) 36.29.020,
the following investments are authorized by this policy: 
A.    Certificates of Deposit (CDs) with qualified public depositories as defined in RCW 39.58. 
B.    Certificates, notes, bonds, bills, or other obligations of the U.S. government or its agencies, or of any
corporation wholly owned by the U.S. government, all of which are secured by the full faith and credit
of the United States for the repayment of principal and interest. 
C.    Obligations of U.S. government-sponsored corporations eligible as collateral for advances to member
banks as determined by the Board of Governors of the Federal Reserve System. These include, but are
not limited to, Federal Home Loan Bank bonds or notes, Federal Farm Credit Bank consolidated notes
and bonds, Federal National Mortgage Association notes, debentures and bonds, Federal Home Loan
Mortgage Corporation bonds or notes. In addition, the following mortgage backed securities of these
agencies are allowed for purchase including: (1) collateralized mortgage pools having a stated final
maturity not exceeding the maturity limits of this policy and (2) planned amortization and sequential
pay classes of collateralized mortgage obligations collateralized by 15-year agency-issued pooled
mortgage securities and having a stated final maturity not exceeding the maturity limits of this policy. 
D.    Bankers' Acceptances purchased in the secondary market. Bankers' Acceptance purchases are limited
to the largest 50 world banks as listed each July in the American Banker. The banks must meet Tier
one and Tier two capital standards. 
E.     Commercial Paper authorized by RCW 43.84.080(7) purchased from the secondary market, consistent
with policy of the State Investment Board .  Any changes to the State Investment Board Guidelines
will be communicated in writing to the Commission as soon as possible. 
F.     Repurchase Agreements structured with securities eligible for purchase (as defined in B through E
above), provided that a Master Repurchase Agreement and Annex(es) has been executed with the
contra-party. 
1)   All securities used in a repurchase agreement shall be priced to reflect current market conditions. 
2) Repurchase Agreements ("Repos") will not exceed 60 days in duration and will be collateralized
in excess of 102% if under 30 days and 105% from 30  60 days. The collateral must be marked
to market no less frequently than daily, and additional collateral posted if necessary. Pricing shall
be rendered at a price the Port could reasonably expect to receive if those securities were sold on
the open market (bid side of the market). The maturity of the underlying collateral cannot exceed 
ten years. 
3) Collateral on Repurchase Agreements shall be delivered to the Port's Safekeeping Agent as
described in Section 6. Any excess collateral requirement will be determined at the time of the
transaction, as specified in the Master Repurchase Agreement. 
G. Reverse Repurchase Agreements ("Reverse Repos") not exceeding 60 days in duration. When used
for yield enhancement rather than cash management purposes, only "matched book" transactions will
be utilized, meaning that the maturity date of the security furnished as collateral is identical to the end
date of the reverse repo transaction. Reverse Repos will only be executed with Approved Security
Dealers or Financial Institutions.

H.   Municipal Bonds of the State of Washington and any local government of the State of Washington: or,
general obligation bonds of a state other than the State of Washington and general obligation bonds of
a local government of a state other than the State of Washington. RCW 39.59.020 prohibits purchase
of municipal revenue bonds of jurisdictions outside the State of Washington. At the time of purchase,
these bonds must have one of the three highest credit ratings of a nationally recognized rating agency
(i.e. "A" or better). 
I.     The Washington State Local Government Investment Pool (LGIP). 
Investments shall not be made in the following securities: 
A.    Corporate stocks 
B.    Corporate bonds 
C.    Foreign Government Obligations 
D.    Futures Contracts 
E.     Investments in Commodities 
F.     Real Estate 
G.    Limited Partnerships 
H.    Negotiable Certificates of Deposit 
I.     Inverse Floaters 
J.     "Interest Only" and "Principal Only" Mortgage Backed Securities 
10.   DIVERSIFICATION 
Portfolio risk shall be mitigated by diversification with respect to security class and issuer. The following
limitations shall apply: 
Type of Securities                              Maximum Holding 
U.S. Treasury Bills, Certificates,                100% of portfolio 
Notes and Bonds 
U.S. Government Agency                   60% of portfolio 
Securities (*) 
Agency Mortgage-Backed Securities          10% of portfolio 
Certificates of Deposit                          15% of portfolio 
5% per Issuer 
Bankers' Acceptances                        20% of portfolio 
5% per bank 
Commercial Paper                          20% of portfolio 
3% per issuer 
Repurchase Agreements 
Overnight                              15% of portfolio 
Term Only                           25% of portfolio 
Reverse Repurchase Agreements              5% of portfolio 

Municipal Securities                           20% of portfolio 
5% per issuer

(*) U. S. Government Agency Discount Notes shall not apply toward maximum Agency limitations. In
addition, Discount Notes cannot exceed 20% of the Portfolio. 

11.   MATURITY RESTRICTIONS 
The investment program shall be administered in a manner that will ensure adequate liquidity to meet
reasonably anticipated cash needs. Purchases shall attempt to match, but should not exceed, the anticipated
need for the funds. To further ensure the satisfaction of these needs, securities purchased shall have a
maximum maturity not longer than ten (10) years from settlement date. 
12. PORTFOLIO STRATEGY STANDARD 
The portfolio shall maintain a 2.0 target (modified) duration standard plus or minus 50 basis points. 
13. POLICY EXCEPTIONS 
No transaction is required if any policy exception or a sudden unexpected change in portfolio size causes the
category holdings to exceed their limits, subsequent investment transactions will work towards returning the
portfolio to the diversification limits contained in the above guidelines within a reasonable amount of time.
Within fifteen (15) days of an exception, staff will notify the audit committee and identify a plan and
estimated time for returning the portfolio to its policy parameters. Weekly reports will be submitted to the
audit committee until the portfolio is within its established policy parameters. 
14. PERFORMANCE STANDARDS 
The portfolio shall be managed to obtain a market rate of return through economic cycles and consistent with
the Port's investment objectives. Portfolio performance shall be benchmarked against the Merrill Lynch
Treasury/Agency 3 Year Index for the period of time being evaluated.

15. INDEPENDENT REVIEW 
Annually, the Washington State Auditor's Office and external auditors will review the Port's investments
and investment controls to ensure effective and appropriate controls exist. A periodic review of investments
and controls, by the Port's internal auditor, will also occur.

16. REPORTING 
At least annually, the Treasurer will provide an investment report to the Port Commission.