Title
A Resolution approving the Cemetery Endowment Fund Investment Policy
Body
From:
Kara Skinner, Chief Financial Officer
Summary:
The proposed Cemetery Investment Policy changes are to better align the investment policy with the investment strategy and policy structure recommended by the City's new investment advisor for the Cemetery Endowment Fund, PFM Asset Management (PFMAM).
Because of the reorganization and rewrite of the policy, a redline version has not been provided. However, generally the sections of the previous policy are addressed in the new policy as follows:
Current Policy Sections: Proposed Policy Sections:
Policy Overview Introductory paragraph
Roles & Responsibilities Purpose
Investment Objective Investment Authority
Statement of Investment Objective
Investment Guidelines Asset Allocation Guidelines
Selection of Investment Managers
Guidelines for Portfolio Holdings
Investment Performance & Evaluation Control Procedures
Investment Policy Review
The proposed investment policy incorporates the definition of "income" that is in line with the Uniform Prudent Management of Institutional Funds Act (UPMIFA), adopted in 2006. UPMIFA provides a definition of income that is more holistic and focused on total return including income and appreciation of investments. This approach will allow the Fund to achieve the objective of long-term growth of the assets and to preserve the ability of the Fund to meet its current and long-term spending policies while minimizing risk of unrealized losses on principal assets.
In addition, the proposed policy defines an asset allocation range and provides the Chief Financial Officer, with input from the Investment Advisor and the Investment Advisory Committee, the authority to determine the target asset allocation. The target allocation will be formalized in an approved Addendum to the Policy. This will allow the Investment Advisor to manag...
Click here for full text