AC 11-15-2021 OPEB and Pension Policies PresentationAudit Committee Special Meeting
November 15, 2021
OPEB & Pension Investment Policy
1. Investment Trusts – Policy and Purpose
2. Roles and Responsibilities
3. Recommendations
Topics
Investment Trusts – Policy and Purpose
“Balanced” Investment Objective
Designed to provide moderate current
income with moderate growth of capital.
Investors should have sufficient tolerance for
price and return volatility and substantial
periodic declines in investment value. This
objective is recommended for investors with
the long-term time horizon.
Roles and Responsibility – Audit Committee
2.88.100 Duties-Powers-Responsibilities
E. To review City investment policies
and internal controls of such policies
Roles and Responsibilities - Investment Manager
•Compliance with fiduciary and due
diligence requirements (“prudent investor”
rules)
•Set forth investment structure
•Appropriate diversification
•Appropriate return over time horizon
Recommendations
Additions to Prohibited Asset Classes
•Direct or indirect exposure to
cryptocurrencies
•Leveraged securities, other than
registered Hedged Equity and
Hedged Fixed Income positions
Registered hedged equity and fixed income
positions shall have a 10% portfolio limit
Recommendations
•Accept proposed policies for City Council
consideration
•Policies will be slated for adoption on
December 7, 2021