NEWPORT BEACH — Like its many residents in navy blazers and khakis, Newport Beach's municipal investment strategy traditionally has been very conservative.
On Tuesday the City Council voted to loosen the tie.
In the face of tight finances and rising pension costs, the city is taking a number of steps to increase returns on its investments and save the money it pays to financial advisers. The moves, while still within state guidelines, may ultimately result in a less diverse portfolio, fewer people handling the city's investments and diminished liquidity.
The most significant change eliminated a cap on the amount the city could invest with any one source. Before, the guidelines said the city could invest no more than 5% of its total portfolio in one place. This protects the government's funds from going down the tubes with a failing company, for example.