HomeMy WebLinkAbout10-08-20-4.5 - Resolution - 10/08/2020RESOLUTION NO. 10-08-20-4.5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS, APPROVING THE CITY’S INVESTMENT POLICY; THE CITY’S
INVESTMENT STRATEGY; REVIEWING AND RECORDING CHANGES TO SUCH
POLICY AND STRATEGY; APPROVING A COLLATERAL POLICY; AND
DESIGNATING INVESTMENT OFFICERS FOR FISCAL YEAR ENDING SEPTEMBER
30, 2021; AND CONTAINING OTHER PROVISIONS RELATED TO THE SUBJECT
MATTER.
WHEREAS, it is a paramount goal of the City of College Station, Texas (“City”) to ensure the
financial integrity of the City and to meet all legal requirements associated with the safekeeping
and investing of its funds; and
WHEREAS, in accordance with the Public Funds Investment Act, Chapter 2256, Texas
Government Code, the City council must adopt an investment policy and investment strategies;
and
WHEREAS, Section 2256.005, Texas Government Code requires the City Council to review the
investment policies and investment strategies not less than annually and to adopt a resolution or
order stating the review has been completed and recording any changes made to either the
investment policies or investment strategies; and
WHEREAS, the Investment Policy for Fiscal Year 2021 designates the Assistant City Manager
or his Designee(s) as the Investment Officer of the City and authorizes the Investment Officer to
carry out the responsibilities of investing the City’s funds; and
WHEREAS, the Investment Policy for Fiscal Year 2021 contains the City’s Collateral Policy
which is required pursuant to Chapter 2257, Texas Government Code; now therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
PART 1: That the facts and recitations set forth in the preamble of this Resolution are hereby
declared true and correct.
PART 2: That the City Council hereby approves the City’s Investment Policy, the City’s
Collateral Policy, the City’s Broker/Dealer List and the City’s Investment Strategy
for Fiscal year 2021, all of which is attached hereto as Exhibit “A” and made a part
hereof.
PART 3: That the City Council of the City has completed its review of the investment policy
and investment strategies, and any changes made to either the investment policy or
investment strategy are recorded in Exhibit “A” hereto.
PART 4: That the City Council hereby approves the designation of the Assistant City
Manager or his Designee(s) as the Investment Officer of the City and authorizes the
Investment Officer to carry out the responsibilities of investing the City’s funds
consistent with the City’s Investment Policy.
RESOLUTION NO. 10-08-20-4.5 Page 2 of 32
PART 5: That this Resolution shall take effect immediately from and after its passage.
ADOPTED this 8th day of October, A.D. 2020.
ATTEST: APPROVED:
_____________________________ _____________________________
City Secretary Mayor
APPROVED:
_______________________________
City Attorney
RESOLUTION NO. 10-08-20-4.5 Page 3 of 32
Exhibit “A”
Investment Strategy and Policy 2021
___________________________________________________________
Investment Strategy and Policy
2021
Approved by Council
October 8, 2020
___________________________________________________________
RESOLUTION NO. 10-08-20-4.5 Page 4 of 32
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Table of Contents
INVESTMENT STRATEGY _________________________________________________________________________________ 3
I. POLICY _______________________________________________________________________________________________ 4
II. SCOPE ______________________________________________________________________________________________ 4
III. INVESTMENT OBJECTIVES _____________________________________________________________________________ 4
Safety ________________________________________________________________________________________________ 4
Liquidity ______________________________________________________________________________________________ 5
Yield _________________________________________________________________________________________________ 5
IV. RESPONSIBILITY AND CONTROL _______________________________________________________________________ 5
Delegation of Authority _________________________________________________________________________________ 5
Cash Flow Analysis ____________________________________________________________________________________ 5
Training Requirement __________________________________________________________________________________ 5
Internal Controls _______________________________________________________________________________________ 6
Prudence _____________________________________________________________________________________________ 6
Ethics and Conflicts of Interest___________________________________________________________________________ 6
V. SUITABLE AND AUTHORIZED INVESTMENTS _____________________________________________________________ 7
Portfolio Management __________________________________________________________________________________ 7
Investments ___________________________________________________________________________________________ 7
Exemption for Existing Investments ______________________________________________________________________ 8
Loss of Required Rating ________________________________________________________________________________ 8
VI. INVESTMENT PARAMETERS ___________________________________________________________________________ 9
Maximum Maturities ____________________________________________________________________________________ 9
Diversification _________________________________________________________________________________________ 9
VII. FINANCIAL INSTITUTIONS AND DEALERS _______________________________________________________________ 9
Depository ____________________________________________________________________________________________ 9
Authorized Brokers/Dealers ____________________________________________________________________________ 10
Competitive Bids _____________________________________________________________________________________ 11
Delivery vs. Payment __________________________________________________________________________________ 11
VIII. SAFEKEEPING OF SECURITIES _______________________________________________________________________ 11
Safekeeping Agreement________________________________________________________________________________ 11
Safekeeping and Custody ______________________________________________________________________________ 11
Collateralization ______________________________________________________________________________________ 11
IX. PERFORMANCE STANDARDS _________________________________________________________________________ 12
Performance Standards ________________________________________________________________________________ 12
Performance Benchmark _______________________________________________________________________________ 12
X. REPORTING _________________________________________________________________________________________ 12
Methods _____________________________________________________________________________________________ 12
Marking to Market _____________________________________________________________________________________ 12
XI. INVESTMENT POLICY ADOPTION ______________________________________________________________________ 13
QUALIFIED BROKERS/DEALERS __________________________________________________________________________ 14
GLOSSARY OF COMMON TREASURY TERMINOLOGY ________________________________________________________ 15
EXHIBIT A OPEB TRUST INVESTMENT GUIDELINE ___________________________________________________________ 22
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INVESTMENT STRATEGY
The City of College Station will pursue a passive investment strategy. Investments will be
purchased with the intent of holding to maturity and will only be sold early under exceptional
circumstances. In purchasing investments, the investment officer will attempt to follow a ladder
strategy to ensure that the portfolio will have at least one investment maturing every month.
Investment priorities are as follows:
1. Suitability - Any investment allowed under the Investment Policy is suitable.
2. Preservation and Safety of Principal - Investments of the City shall be undertaken
in a manner that seeks to insure the preservation of capital in the overall portfolio.
3. Liquidity - The City’s investment portfolio will remain sufficiently liquid to enable the
City to meet all operational requirements that might reasonably be anticipated.
4. Marketability - Investments should have an active and efficient secondary market to
enable the City to liquidate investments prior to the maturity if the need should arise.
5. Diversification - The Investment Officer will attempt to maintain a diversified portfolio
with regard to security type, financial institution providing the security, and maturity.
6. Yield - The City’s investment portfolio shall be designed with the objective of attaining
the maximum rate of return throughout budgetary and economic cycles, taking into
account the City’s risk constraints and the cash flow characteristics of the portfolio.
The City of College Station also has an irrevocable trust relating to its OPEB obligations. The
City’s Investment Committee will dictate the investment strategy for this trust. This trust does not
fall under the Texas Public Funds Investment Act. The current investment guideline is attached
to this policy as Exhibit A.
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CITY OF COLLEGE STATION
INVESTMENT POLICY
The Public Funds Investment Act, Chapter 2256, Texas Government Code, as Amended (”PFIA”
herein), requires each city to adopt rules governing its investment practices and to define the
authority of the investment officer. The following Investment Policy addresses the methods,
procedures, and practices that must be exercised to ensure effective and judicious fiscal
management of the City of College Station funds.
I. POLICY
It is the policy of the City of College Station, Texas (“City”) to invest public funds in a manner,
which will provide the highest investment return with the maximum security while meeting the
daily cash flow demands of the City and conforming to all federal, state and local statutes
governing the investment of public funds.
II. SCOPE
This investment policy applies to all the financial assets held by the City. These funds are defined
in the City’s Comprehensive Annual Financial Report (CAFR) and include:
General Fund Special Revenue Funds
Debt Service Fund Capital Projects Funds
Enterprise Funds Internal Service Funds
Any new funds created by the City will be subject to this policy unless specifically exempted by
the City Council. To maximize the effective investment of assets, all funds mentioned above will
pool their cash balances for investment purposes. The income derived from investing activities
will be distributed to the various funds based on calculation of their average balances.
III. INVESTMENT OBJECTIVES
The City of College Station shall manage and invest its cash with three primary objectives, listed
in order of priority: safety, liquidity and yield. The safety of the principal invested always remains
the primary objective.
Safety
Safety of Principal is the foremost objective of the City. Investments of the City shall be undertaken
in a manner that seeks to insure the preservation of capital in the overall portfolio.
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Liquidity
The City’s investment portfolio will remain liquid to enable the City to meet all operational
requirements that might reasonably be anticipated.
Yield
The City shall invest funds in investments that earn a competitive market yield consistent with
stated objectives. For bond proceeds to which arbitrage restrictions apply, the primary
objectives shall be to obtain a fair market yield and to minimize the costs associated with the
investment of such funds within the constraints of the investment policy and applicable bond
covenants.
IV. RESPONSIBILITY AND CONTROL
Delegation of Authority
The Assistant City Manager or his Designee is designated the City’s Investment Officer. The
Investment Officer shall be responsible for the investment of funds consistent with this Policy, and
shall have the authority necessary to carry out such responsibilities. An investment committee
consisting of the Investment Officer and at least two other staff members designated by the City
Manager will also be formed. This committee will be responsible for selecting eligible
broker/dealers, reviewing, and updating the investment policy annually. All participants in the
investment process shall seek to act responsibly as custodians of the public trust.
The Investment Officer shall establish written procedures for the operation of the investment
program consistent with this investment policy. No person may engage in an investment
transaction except as provided under the terms of this policy and the procedures established by
the Investment Officer. The Investment Officer shall be responsible for all transactions undertaken
and shall establish a system of controls to regulate the activities of subordinate officials.
Cash Flow Analysis
Supplemental to the financial and budgetary systems, the Investment Officer will maintain a
cash flow forecasting process designed to monitor and forecast cash positions for investment
purposes. Cash flow analysis will include the historical researching and monitoring of specific
cash flow items, payables and receivables as well as overall cash position and patterns.
Training Requirement
In order to ensure the quality and capability of investment management, the Assistant City
Manager and the Investment Officer shall:
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- attend at least one training session within 12 months of assuming duties and
containing not less than 10 hours of instruction from an independent source approved
by the governing board or a designated investment committee;
- receive training which includes education in investment controls, security risks, strategy
risks, market risks, diversification of the investment portfolio, and compliance with the
PFIA; and
- attend a training session not less than once each state fiscal biennium (beginning on
the first day of the fiscal year and consisting of two consecutive fiscal years after that
date) and receive not less than 8 hours of training from an independent source
approved by the governing board or a designated investment committee.
Internal Controls
The Investment Officer shall establish an annual process of independent review by an external
auditor. This review will provide internal control by assuring compliance with policies and
procedures. Annually, the City’s independent auditors will review quarterly reports for the fiscal
year.
Prudence
Investments shall be made with the judgment and care which persons of prudence, discretion and
intelligence exercise in the management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the probable income to be
derived.
The standard of prudence to be used by investment officials shall be the “prudent person”
standard and shall be applied in the context of managing an overall portfolio. Investment officers
acting in accordance with written procedures and the investment policy and exercising due
diligence shall be relieved of personal responsibility for an individual security’s credit risk or
market price changes provided deviations from expectations are reported in a timely fashion and
appropriate action is taken to control adverse developments.
Ethics and Conflicts of Interest
All participants in the investment process shall seek to act responsibly as custodians of the public
trust. Investment officers shall avoid any transactions that might impair public confidence in the
City’s ability to govern effectively.
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 which could impair
their ability to make impartial investment decisions. Employees and investment officials shall
disclose to the City Manager any material financial interest in financial institutions that conduct
business within this jurisdiction, and they shall further disclose any large personal
financial/investment positions that could be related to the performance of the City, particularly with
regard to the time of purchases and sales. Investment officials will disclose if the Official is related
RESOLUTION NO. 10-08-20-4.5 Page 9 of 32
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with the second degree by affinity or consanguinity, as determined under Chapter 573 of the
Texas Government Code. Employees and investment officials shall refrain from undertaking
personal investment transactions with the same individual with which business is conducted on
behalf of the City.
On an annual basis, the Investment officials shall sign a statement acknowledging that they are
in compliance with Section 2256.005 (i) of the Public Funds Investment Act.
V. SUITABLE AND AUTHORIZED INVESTMENTS
Portfolio Management
The City currently has a “buy and hold” portfolio strategy. Maturity dates are matched with cash
flow requirements and investments are purchased with the intent to be held until maturity.
Investments
Acceptable investments under this policy shall be limited to certain instruments as described by
the Government Code; Chapter 2256, Sections 2256.009 through 2256.011 and Sections
2256.013 through 2256.016 of the Public Funds Investment Act. Investment of funds in any
instrument or security not authorized for investment under the Act is prohibited.
• Authorized
1. Interest bearing bank deposits insured by the FDIC or the National Credit Union Share
Insurance Fund.
2. Direct obligations of the United States government: U.S. Treasury Bills, U.S. Treasury
Notes, and U.S. Treasury Bonds as well as Bonds or other interest bearing obligations
for which the principal and interest are guaranteed by the full faith and credit of the
United States government and rated not less than A or its equivalent by at least one
nationally recognized investment rating firm.
3. Federal Agencies and Instrumentalities including but not limited to, discount notes,
callables and debentures of the Federal National Mortgage Association (FNMA), the
Federal Home Loan Bank (FHLB), the Federal Farm Credit Bank (FFCB), and the
Federal Home Loan Mortgage Corporation (FHLMC).
4. Time Certificates of Deposit, insured by the Federal Deposit Insurance Corporation
(FDIC) or its successor, or the National Credit Union Share Insurance Fund or its
successor, in state or national banks. Any deposits exceeding FDIC insurance limits
shall be collateralized at 102% of the face amount of the Certificate of Deposit by
securities listed in 1 - 2 above and held by the City's custodial bank or the custodial
bank of the institution the CD’s are held. Bids for Certificates of Deposit may be
solicited orally, in writing, electronically or using any combination of these methods.
RESOLUTION NO. 10-08-20-4.5 Page 10 of 32
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5. Repurchase Agreements with a defined termination date of 90 days or less
collateralized by a combination of cash and securities listed in 1 - 2 above. Collateral
must have a minimum market value of 102% of the repurchase agreement, and must
be held by the custodian bank or other independent third-party custodian contracted
by the City. Bond proceeds may be invested in flexible repurchase agreements with
maturity dates not exceeding the expected final project expenditure if a formal bidding
process is followed and properly documented for IRS purposes.
6. AAA-rated No-Load Money Market Mutual Funds registered with the Securities and
Exchange Commission and comply with SEC Rule 2a-7 .
7. AAA-rated Investment Pools organized under the Texas Interlocal Cooperation Act
that follow the requirements in the Public Funds Investment Act and which have been
specifically approved by the City.
• Not Authorized
The following security types are not permitted:
1. Obligations whose payment represents the coupon payments of the underlying mortgage-
backed security collateral and pays no principal (IO’s);
2. Obligations whose payment represents the principal stream from the underlying mortgage-
backed security collateral and bears no interest (PO’s);
3. Collateralized Mortgage Obligations (CMO’s) that have a stated final maturity date of
greater than 10 years; and
4. Any security, the interest rate of which is determined by an index that adjusts opposite to
the changes in the Market index (inverse floaters).
Exemption for Existing Investments
Any investment, which was authorized at the time of purchase, shall not be required to be
liquidated.
Loss of Required Rating
If any security that requires a minimum investment rating is downgraded below that minimum
rating subsequent to purchase, it will no longer be considered an authorized investment. As a
result, the City shall take all prudent measures to liquidate the security in effort to preclude or
reduce principal loss. The City will select a different approved broker/dealer each quarter to verify
the ratings of securities held. Local Government Pools ratings will be verified quarterly by
checking their websites.
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VI. INVESTMENT PARAMETERS
Maximum Maturities
To the extent possible, the City will attempt to match its investments with anticipated cash flow
requirements. Unless matched to a specific cash flow, the City will not directly invest in securities
maturing more than five years from the date of purchase. Additionally, the City will maintain a
dollar-weighted average maturity of two years or less.
Diversification
It is the intent of the City to diversify the investment instruments within the portfolio to avoid
incurring unreasonable risks inherent in over-investing in specific instruments, individual financial
institutions or maturities. The asset allocation in the portfolio should be flexible depending upon
the outlook for the economy and the securities markets. If conditions warrant, the guidelines below
may be exceeded by approval of the Investment Committee.
With the exception of U.S. Treasury securities, authorized pools, and the City’s depository
accounts, the City may not invest more than 30% of the City’s investment portfolio with a single
financial institution. In addition, the following maximum limits, by instrument, are established for
the City’s total portfolio:
1. U.S. Treasury Securities 100%
2. Agencies and Instrumentalities 70%
3. Certificates of Deposits 40%
4. Money Market Mutual Funds 30%
5. Repurchase Agreements 20%
7. Authorized Pools 70%
VII. FINANCIAL INSTITUTIONS AND DEALERS
Depository
At least every three to five years a Depository shall be selected through the City’s banking
services procurement process, which shall include a formal request for application (RFA). The
selection of a depository will be determined by competitive bid and evaluation of bids will be
based on the following selection criteria:
• The ability to qualify as a depository for public funds in accordance with state and
local laws.
• The ability to provide requested information or financial statements for the period
specified.
• The ability to meet all requirements in the banking RFA.
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• Complete response to all required items on the bid form.
• Lowest net banking service cost, consistent with the ability to provide an
appropriate level of service.
• The credit worthiness and financial stability of the bank.
The bank depository contract is subject to Council approval. During the term of the contract,
additional accounts may be established. The City may open a cash money market account with
its approved depository bank. Accounts held by the approved bank are to be collateralized at
no less than 105%. Two authorized signers on the City’s accounts must approve the
establishment of new accounts.
Authorized Brokers/Dealers
The Investment Officer shall maintain a list of financial institutions authorized to provide
investment services. In addition, a list will also be maintained of approved security broker/dealers
selected by credit worthiness who are authorized to provide investment services in the State of
Texas. These may include “primary” or regional dealers that qualify under SEC rule 15C3-1. No
public deposit shall be made except in a qualified public depository as established by state laws.
All financial institutions and broker/dealers who desire to become qualified bidders for investment
transactions must supply the Investment Officer with a completed Broker/Dealer Questionnaire
and Certification, which shall include the following:
• An audited financial statement for the most recent period.
• Proof of certification by the Financial Industry Regulatory Authority (FINRA).
• Proof of current registration with the State Securities Commission.
Financial institutions eligible to transact investment business with the City shall be presented a
written copy of this Investment Policy.
Additionally, the qualified representative of the business organization seeking to transact
investment business shall execute a written instrument substantially to the effect that the
qualified representative has received and reviewed this Investment Policy, and acknowledged
that the organization has implemented reasonable procedures and controls in an effort to
preclude imprudent investment activities with the City.
The City will not enter into an investment transaction with a Broker/Dealer prior to receiving the
written agreement described above and current audited financial statements.
Annually, the Investment Committee shall review and revise the list as needed. The Committee
will consider any new firms that have submitted the required documentation and review the
performance of the previously approved firms. Any modifications to the list will be submitted to
Council for their review, approval and adoption.
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Competitive Bids
Securities will be purchased or sold after three (3) offers/bids are taken to verify that the City is
receiving fair market value/price for the investment. Security transactions that may be purchased
without competitive offers include: a) transactions with money market mutual funds b) local
government investment pools and c) new securities still in syndicate and priced at par.
Delivery vs. Payment
All securities transaction, including collateral for repurchased agreements, shall be purchased
using the delivery vs., payment method with the exception of investment pools and mutual funds.
Funds will be released after notification that the purchased security has been received.
VIII. SAFEKEEPING OF SECURITIES
Safekeeping Agreement
The City shall contract with a bank or banks for the safekeeping of securities either owned by the
City as part of its investment portfolio or held as collateral to secure demand or time deposits.
Safekeeping and Custody
Safekeeping and custody of securities and collateral shall be in accordance with state law.
Securities and collateral will be held by a third party custodian designated by the Investment
Officer and held in the City’s name as evidenced by safekeeping receipts of the institution with
which the securities are deposited. Original safekeeping receipts shall be obtained.
Collateralization
Consistent with the requirements of the Public Funds Collateral Act, it is the policy of the City to
require full collateralization of all investments and uninsured balances plus accrued interest on
deposit with a depository bank, other than investments, which are obligations of the U.S.
government, its agencies and instrumentalities, and government sponsored enterprises. In order
to anticipate market changes and provide a level of security for all funds, the collateralization level
will be 102% of market value of principal and accrued interest on deposits or investments less
than an amount insured by the FDIC. The collateralization level of the City’s depository accounts
will be no less than 105%.
Collateral will always be held by an independent third party with whom the City has a current
custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be
supplied to the City and retained.
The right of collateral substitution is granted and the City’s Investment Officers reserve the right
to accept or reject any form of collateral or enhancement at their sole discretion.
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IX. PERFORMANCE STANDARDS
Performance Standards
The investment portfolio shall be designed with the objective of obtaining a rate of return
throughout budgetary and economic cycles, commensurate with the investment risk constraints
and cash flow needs.
Performance Benchmark
Given the passive investment strategy of the City, the benchmark to be used by the Investment
Officer to determine whether market yields are being achieved shall be the average closing yield
during the reporting period comparable to the portfolios dollar-weighted average maturity in days.
X. REPORTING
Methods
Not less than quarterly and within a reasonable time after the end of the period reported, the
Investment Officer should prepare and submit to the City Council a written report of the investment
transactions for all funds of the City for the preceding reporting period. The report must:
• describe in detail the investment position of the City on the date of the report,
• be prepared jointly by all the Investment Officers if the City appoints more than one,
• be signed by all Investment Officials,
• contain a summary statement of each pooled fund group that states the beginning
market value for the reporting period,
• state the book value and the market value of each separately invested asset at the
end of the reporting period by the type of asset and fund type invested,
• state the maturity date of each separately invested asset that has a maturity date,
• state the fund for which each individual investment was acquired,
• state all accrued interest payable; and
• state the compliance of the investment portfolio as it relates to this Policy and
Investment Act.
Marking to Market
The market values of the City’s investments shall be obtained from a reliable outside source,
which has access to investment market values. Marking to Market will be done at least quarterly.
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XI. INVESTMENT POLICY ADOPTION
The City’s investment policy and investment strategies must be adopted annually by resolution of
the City Council even if there are no changes. The City Council shall review the policy annually
and they must approve any changes or modifications made thereto.
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QUALIFIED BROKERS/DEALERS/ADVISORS
FTN Financial Cantor Fitzgerald & Company
Zach Brewer 1700 Post Oak Boulevard
920 Memorial City Way, 11th Floor 2 BLVD Place, Suite 250
Houston, TX 77024 Houston, TX 77056
Phone: (713) 435-4351 Phone: (713) 599-5192
Hilltop Securities, Inc. Truist Securities
Gilbert Ramon James D. Elliot
7000 N. MoPac Expressway, #400 Gregory D. Blake
Austin, TX 78731 901 East Byrd Street, Suite 300
Phone: (512) 340-1841 Richmond, VA 23219
Phone: (804) 649-3976
American Momentum Bank (CD’s only)
Frank Varisco
Five Momentum Blvd.
College Station, TX 77845
Phone: (979) 599-9349
INVESTMENT POOLS
TexPool TexSTAR
1001 Texas Ave., Suite 1400 1201 Elm Street, Suite 3500
Houston, TX 77002 Dallas, TX 75270
Phone: (866)839-7665 Phone: (800)839-7827
TexPool Prime LOGIC
1001 Texas Ave., Suite 1400 1201 Elm Street, Suite 3500
Houston, TX 77002 Dallas, TX 75270
Phone: (866)839-7665 Phone: (800)895-6442
DEPOSITORY BANKS
Truist Bank (previously BB&T) JPMorgan Chase Bank, NA.
2717 Texas Avenue South One Chase Manhattan Plaza
College Station, Texas 77840 New York, New York 10005-1401
(979)260-1482
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GLOSSARY OF COMMON TREASURY TERMINOLOGY
Accrued Interest - The accumulated interest due on a bond as of the last interest payment
made by the issuer.
Agency - A debt security issued by a federal or federally sponsored agency. Federal agencies
are backed by the full faith and credit of the U.S. Government. Federally sponsored agencies
(FSAs) are backed by each particular agency with a market perception that there is an implicit
government guarantee. An example of federal agency is the Government National Mortgage
Association (GNMA). An example of a FSA is the Federal National Mortgage Association
(FNMA).
Amortization - The systematic reduction of the amount owed on a debt issue through periodic
payments of principal.
Asked - The price at which securities are offered.
Average Life - The average length of time that an issue of serial bonds and/or term bonds with
a mandatory sinking fund feature is expected to be outstanding.
Basis Point - A unit of measurement used in the valuation of fixed-income securities equal to
1/100 of 1 percent of yield, e.g., "1/4" of 1 percent is equal to 25 basis points.
Bid - The indicated price at which a buyer is willing to purchase a security or commodity.
Book Value - The value at which a security is carried on the inventory lists or other financial
records of an investor. The book value may differ significantly from the security's current value
in the market.
Broker - A broker brings buyers and sellers together for a commission paid by the initiator of the
transaction or by both sides; he does not position. In the money market, brokers are active in
markets in which banks buy and sell money and in interdealer markets.
Callable Bond - A bond issue in which all or part of its outstanding principal amount may be
redeemed before maturity by the issuer under specified conditions.
Call Price - The price at which an issuer may redeem a bond prior to maturity. The price is
usually at a slight premium to the bond's original issue price to compensate the holder for loss
of income and ownership.
Call Risk - The risk to a bondholder that a bond may be redeemed prior to maturity.
Cash Sale/Purchase - A transaction that calls for delivery and payment of securities on the
same day that the transaction is initiated.
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Certificate of Deposit (CD) – A time deposit with a specific maturity evidenced by a certificate.
Large-denomination CD’s are typically negotiable.
Collateralization - Process by which a borrower pledges securities, property, or other deposits
for the purpose of securing the repayment of a loan and/or security.
Commercial Paper - An unsecured short-term promissory note issued by corporations, with
maturities ranging from 2 to 270 days.
Comprehensive Annual Financial Report (CAFR) – The official annual report for the City of
College Station. It includes combined statements and basic financial statements for each
individual fund and account group prepared in conformity with GAAP. It also includes supporting
schedules necessary to demonstrate compliance with finance-related legal and contractual
provision, extensive introductory material, and a detailed statistical section.
Coupon Rate - The annual rate of interest received by an investor from the issuer of certain
types of fixed-income securities. It is also known as the interest rate.
Credit Quality - The measurement of the financial strength of a bond issuer. This measurement
helps an investor to understand an issuer's ability to make timely interest payments and repay
the loan principal upon maturity. Generally, the higher the credit quality of a bond issuer, the
lower the interest rate paid by the issuer because the risk of default is lower. Credit quality
ratings are provided by nationally recognized rating agencies.
Credit Risk - The risk to an investor that an issuer will default in the payment of interest and/or
principal on a security.
Current Yield (Current Return) - A yield calculation determined by dividing the annual interest
received on a security by the current market price of that security.
Dealer – A dealer, as opposed to a broker, acts as a principal in all transactions, buying and
selling for his own account.
Delivery Versus Payment (DVP) - A type of securities transaction in which the purchaser pays
for the securities when they are delivered either to the purchaser or his/her custodian.
Discount - The amount by which the par value of a security exceeds the price paid for the
security.
Discount Security – Non-interest bearing money market instruments that are issued at a
discount and redeemed at maturity for full face value, e.g. U.S. Treasury Bills.
Diversification - A process of investing assets among a range of security types by sector,
maturity, and quality rating.
Duration - A measure of the timing of the cash flows, such as the interest payments and the
principal repayment, to be received from a given fixed-income security. This calculation is based
on three variables: term to maturity, coupon rate, and yield to maturity. The duration of a
security is a useful indicator of its price volatility for given changes in interest rates.
RESOLUTION NO. 10-08-20-4.5 Page 19 of 32
17
Fair Value - The amount at which an investment could be exchanged in a current transaction
between willing parties, other than in a forced or liquidation sale.
Federal Funds (Fed Funds) - Funds placed in Federal Reserve banks by depository
institutions in excess of current reserve requirements. These depository institutions may lend
fed funds to each other overnight or on a longer basis. They may also transfer funds among
each other on a same-day basis through the Federal Reserve banking system. Fed funds are
considered immediately available funds.
Federal Funds Rate - Interest rate charged by one institution lending federal funds to the other.
Federal Credit Agencies – Agencies of the Federal Government set up to supply credit to
various classes of institutions and individuals, e.g. S&L’s small business firms, students,
farmers, farm cooperatives, and exporters.
Federal Deposit Insurance Corporation (FDIC) – A federal agency that insures bank
deposits, currently up to $250,000 per depository account through December 31, 2013. On
January 1, 2014, the standard insurance amount will return to $100,000.
Federal Home Loan banks (FHLB) – The institutions that regulate and lend to savings and
loan associations. The Federal Home Loan Banks play a role similar to that played by the
Federal Reserve Bank versus member commercial banks.
Federal National Mortgage Association (FNMA) – A government –sponsored enterprise
(GSE) that was created in 1938 to expand the low of mortgage money by creating a secondary
mortgage market. Fannie Mae is a publicly traded company which operates under a
congressional charter that directs Fannie Mae to channel its efforts into increasing the
availability and affordability of homeownership for low-, moderate-, and middle-income
Americans.
Federal Open Market Committee (FOMC) – Consists of seven members of the Federal
Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the
New York Federal Reserve Bank is a permanent member while the other Presidents serve on a
rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding
purchases and sales of Government Securities in the open market as a means of influencing
the volume of bank credit and money.
Federal Reserve System – The central bank of the United States created by Congress and
consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and
about 5,700 commercial banks that are members of the system.
Financial Industry Regulatory Authority (FINRA) - A self-regulatory organization (SRO) of
brokers and dealers in the over-the-counter securities business. Its regulatory mandate includes
authority over firms that distribute mutual fund shares as well as other securities.
Government Securities - An obligation of the U.S. government, backed by the full faith and
credit of the government. These securities are regarded as the highest quality of investment
securities available in the U.S. securities market. See "Treasury Bills, Notes, and Bonds."
Interest Rate - See "Coupon Rate."
RESOLUTION NO. 10-08-20-4.5 Page 20 of 32
18
Interest Rate Risk - The risk associated with declines or rises in interest rates which cause an
investment in a fixed-income security to increase or decrease in value.
Internal Controls - An internal control structure designed to ensure that the assets of the entity
are protected from loss, theft, or misuse. The internal control structure is designed to provide
reasonable assurance that these objectives are met. The concept of reasonable assurance
recognizes that 1) the cost of a control should not exceed the benefits likely to be derived and 2)
the valuation of costs and benefits requires estimates and judgments by management. Internal
controls should address the following points:
Control of collusion - Collusion is a situation where two or more employees are
working in conjunction to defraud their employer.
Separation of transaction authority from accounting and record keeping - By
separating the person who authorizes or performs the transaction from the people
who record or otherwise account for the transaction, a separation of duties is
achieved.
Custodial safekeeping - Securities purchased from any bank or dealer including
appropriate collateral (as defined by state law) shall be placed with an independent
third party for custodial safekeeping.
Inverted Yield Curve - A chart formation that illustrates long-term securities having lower yields
than short-term securities. This configuration usually occurs during periods of high inflation
coupled with low levels of confidence in the economy and a restrictive monetary policy.
Investment Policy - A concise and clear statement of the objectives and parameters
formulated by an investor or investment manager for a portfolio of investment securities.
Liquidity - An asset that can be converted easily and quickly into cash.
Local Government Investment Pool (LGIP) - An investment by local governments in which
their money is pooled as a method for managing local funds.
Mark-to-market - The process whereby the book value or collateral value of a security is
adjusted to reflect its current market value.
Market Risk - The risk that the value of a security will rise or decline as a result of changes in
market conditions.
Market Value - Current market price of a security.
Maturity - The date on which payment of a financial obligation is due. The final stated maturity
is the date on which the issuer must retire a bond and pay the face value to the bondholder. See
"Weighted Average Maturity."
Money Market – The market in which short-term debt instruments (bills, commercial paper,
bankers’ acceptances, etc.) are issued and traded.
RESOLUTION NO. 10-08-20-4.5 Page 21 of 32
19
Money Market Mutual Fund - Mutual funds that invest solely in money market instruments
(short-term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances,
repos and federal funds).
Mutual Fund - An investment company that pools money and can invest in a variety of
securities, including fixed-income securities and money market instruments. Mutual funds are
regulated by the Investment Company Act of 1940.
Net Asset Value - The market value of one share of an investment company, such as a mutual
fund. This figure is calculated by totaling a fund's assets that includes securities, cash, and any
accrued earnings, subtracting this from the fund's liabilities and dividing this total by the number
of shares outstanding. This is calculated once a day based on the closing price for each security
in the fund's portfolio. (See below.) [(Total assets) - (Liabilities)] / (Number of shares
outstanding)
Nominal Yield - The stated rate of interest that a bond pays its current owner, based on par
value of the security. It is also known as the "coupon," "coupon rate," or "interest rate."
Offer - An indicated price at which market participants are willing to sell a security or
commodity. Also referred to as the "Ask price."
Par - Face value or principal value of a bond, typically $1,000 per bond.
Portfolio – Collection of securities held by an investor.
Positive Yield Curve - A chart formation that illustrates short-term securities having lower
yields than long-term securities.
Premium - The amount by which the price paid for a security exceeds the security's par value.
Prime Rate - A preferred interest rate charged by commercial banks to their most creditworthy
customers. Many interest rates are keyed to this rate.
Principal - The face value or par value of a debt instrument. Also may refer to the amount of
capital invested in a given security.
Prospectus - A legal document that must be provided to any prospective purchaser of a new
securities offering registered with the SEC. This can include information on the issuer, the
issuer's business, the proposed use of proceeds, the experience of the issuer's management,
and certain certified financial statements.
Prudent Person Rule - An investment standard outlining the fiduciary responsibilities of public
funds investors relating to investment practices.
Rate of Return – The yield obtainable on a security based on its purchases price or its current
market price. This may be the amortized yield to maturity on a bond or the current income
return.
Reinvestment Risk - The risk that a fixed-income investor will be unable to reinvest income
proceeds from a security holding at the same rate of return currently generated by that holding.
RESOLUTION NO. 10-08-20-4.5 Page 22 of 32
20
Repurchase Agreement (repo or RP) - An agreement of one party to sell securities at a
specified price to a second party and a simultaneous agreement of the first party to repurchase
the securities at a specified price or at a specified later date.
Reverse Repurchase Agreement (Reverse Repo) - An agreement of one party to purchase
securities at a specified price from a second party and a simultaneous agreement by the first
party to resell the securities at a specified price to the second party on demand or at a specified
date.
Rule 2a-7 of the Investment Company Act - Applies to all money market mutual funds and
mandates such funds to maintain certain standards, including a 13- month maturity limit and a
90-day average maturity on investments, to help maintain a constant net asset value of one
dollar ($1.00).
Safekeeping - Holding of assets (e.g., securities) by a financial institution.
Secondary Market – A market made for the purchase and sale of outstanding issues following
the initial distribution.
Securities & Exchange Commission – Agency created by Congress to protect investors in
securities transactions by administering securities legislation.
Serial Bond - A bond issue, usually of a municipality, with various maturity dates scheduled at
regular intervals until the entire issue is retired.
Sinking Fund - Money accumulated on a regular basis in a separate custodial account that is
used to redeem debt securities or preferred stock issues.
Swap - Trading one asset for another.
Term Bond - Bonds comprising a large part or all of a particular issue which come due in a
single maturity. The issuer usually agrees to make periodic payments into a sinking fund for
mandatory redemption of term bonds before maturity.
Total Return - The sum of all investment income plus changes in the capital value of the
portfolio. For mutual funds, return on an investment is composed of share price appreciation
plus any realized dividends or capital gains. This is calculated by taking the following
components during a certain time period. (Price Appreciation) + (Dividends paid) + (Capital
gains) = Total Return
Treasury Bills - Short-term U.S. government non-interest bearing debt securities with
maturities of no longer than one year and issued in minimum denominations of $10,000.
Auctions of three- and six-month bills are weekly, while auctions of one-year bills are monthly.
The yields on these bills are monitored closely in the money markets for signs of interest rate
trends.
Treasury Bonds – Marketable, fixed-interest U.S. government debt securities with maturities of
more than ten years and issued in minimum denominations of $1,000. Treasury bonds make
interest payments semi-annually and the income that holders received is only taxed at the
federal level.
RESOLUTION NO. 10-08-20-4.5 Page 23 of 32
21
Treasury Notes - Marketable U.S. government debt securities with fixed interest rates and
maturities between 1 to 10 years. Treasury notes can be bought either directly from the U.S.
government or through banks.
Uniform Net Capital Rule - SEC Rule 15C3-1 – Securities and Exchange Commission
requirement that member firms as well as nonmember broker-dealers in securities maintain a
maximum ration of indebtedness to liquid capital of 15 to 1: also called net capital rule and net
capital ratio. Indebtedness covers all money owned to a firm, including margin loans and
commitments to purchase securities. This is one reason new public issues are spread among
members of underwriting syndicates. Liquid capital includes cash and assets easily converted
into cash.
Volatility - A degree of fluctuation in the price and valuation of securities.
Volatility Risk Rating - A rating system to clearly indicate the level of volatility and other non-
credit risks associated with securities and certain bond funds. The ratings for bond funds range
from those that have extremely low sensitivity to changing market conditions and offer the
greatest stability of the returns ("aaa" by S&P; "V-1" by Fitch) to those that are highly sensitive
with currently identifiable market volatility risk ("ccc-" by S&P, "V-10" by Fitch).
Weighted Average Maturity (WAM) - The average maturity of all the securities that comprise a
portfolio. According to SEC rule 2a-7, the WAM for SEC registered money market mutual funds
may not exceed 90 days and no one security may have a maturity that exceeds 397 days.
Yield - The current rate of return on an investment security generally expressed as a
percentage of the security's current price.
Yield-to-call (YTC) - The rate of return an investor earns from a bond assuming the bond is
redeemed (called) prior to its nominal maturity date. Yield Curve - A graphic representation that
depicts the relationship at a given point in time between yields and maturity for bonds that are
identical in every way except maturity. A normal yield curve may be alternatively referred to as a
positive yield curve.
Yield-to-maturity - The rate of return yielded by a debt security held to maturity when both
interest payments and the investor's potential capital gain or loss are included in the calculation
of return.
Zero-coupon Securities - Security that is issued at a discount and makes no periodic interest
payments. The rate of return consists of a gradual accretion of the principal of the security and
is payable at par upon maturity.
RESOLUTION NO. 10-08-20-4.5 Page 24 of 32
22
EXHIBIT A
PARS OBEB TRUST
INVESTMENT GUIDELINE
RESOLUTION NO. 10-08-20-4.5 Page 25 of 32
_j HIGHMARK®
CAPITAL MANAGEMENT
Investment Guidelines Document
City of College Station, Texas
115 Irrevocable Exclusive Benefit Trust
August 2017
RESOLUTION NO. 10-08-20-4.5 Page 26 of 32
Investment Guidelines Document
Scope and Purpose
The purpose of this Investment Guidelines Document is to :
• Facilitate the process of ongoing communication between the Plan Sponsor and its plan
fiduciaries;
• Confirm the Plan's investment goals and objectives and management policies applicable
to the investment portfolio identified below and obtained from the Plan Sponsor;
• Provide a framework to construct a well-diversified asset mix that can potentially be
expected to meet the account's short-and long-term needs that is consistent with the
account's investment objectives, liquidity considerations and risk tolerance;
• Identify any unique considerations that may restrict or limit the investment discretion of its
designated investment managers;
• Help maintain a long-term perspective when market volatility is caused by short-term
market movements .
Key Plan Sponsor Account Information as of August 2017
Plan Sponsor:
Governance:
Plan Name ("Plan")
Trustee:
Type of Account:
ER/SA Status:
Market Value of Account:
Investment Manager:
City of College Station
City Council for the City of College Station
City of College Station Other Post-Employment Benefits Plan
US Bank
Contact: Susan Hughes, 949-224-7209
susan. hug hes@usban k. com
GASB 45/0ther Post-Employment Benefits Trust
Not subject to ERISA
est. $1 ,000,000
US Bank, as discretionary trustee, has delegated investment
management responsibilities to HighMark Capital Management,
Inc. ("Investment Manager"), an SEC-registered investment
adviser
Contact: Andrew Brown, CFA, 415-705-7605
Andrew .brown@highmarkcapital .com
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RESOLUTION NO. 10-08-20-4.5 Page 27 of 32
Investment Authority: Except as otherwise noted, the Trustee, US Bank, has delegated
investment authority to HighMark Capital Management, an SEC-registered investment adviser.
Investment Manager has full investment discretion over the managed assets in the account.
Investment Manager is authorized to purchase, sell, exchange, invest, reinvest and manage the
designated assets held in the account, all in accordance with account's investment objectives,
without prior approval or subsequent approval of any other party(ies).
Investment Objectives and Constraints
The goal of the Plan's investment program is to generate adequate long-term returns that, when
combined with contributions, will result in sufficient assets to pay the present and future
obligations of the Plan. The following objectives are intended to assist in achieving this goal:
• The Plan should earn, on a long-term average basis, a rate of return equal to or in excess
of the targeted rate of return in the actuarial valuation.
• The Plan should seek to earn a return in excess of its policy benchmark over the long-
term .
• The Plan's assets will be managed on a total return basis which takes into consideration
both investment income and capital appreciation. While the Plan Sponsor recognizes the
importance of preservation of capital, it also adheres to the principle that varying degrees
of investment risk are generally rewarded with compensating returns. To achieve these
objectives, the Plan Sponsor allocates its assets (asset allocation) with a strategic, long-
term perspective of the capital markets.
Investment Time Horizon:
Anticipated Cash Flows:
Investment Objective:
Risk Tolerance:
Long-term
Distributions are expected to be low in the early years of the
Plan.
The primary objective is to maximize total Plan return, subject to
the risk and quality constraints set forth herein. The investment
objective the Plan Sponsor has selected is the Balanced
Objective, which has a dual goal to seek growth of income and
principal.
Balanced
The account's risk tolerance has been rated balanced, which
demonstrates that the account can accept price fluctuations to
pursue its investment objectives.
City of College Station -115 Other Post-Employment Benefits Trust
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RESOLUTION NO. 10-08-20-4.5 Page 28 of 32
Strategic Asset Allocation: The asset allocation ranges for this objective are listed below:
Strategic Asset Allocation Ranges
Cash Fixed Income Equity
0-20% 30%-50% 50%-70%
Policy: 5% Policy: 35% Policy: 60%
Market conditions may cause the account's asset allocation to vary from the stated range from
time to time . The Investment Manager will rebalance the portfolio no less than quarterly and/or
when the actual weighting differs substantially from the strategic range, if appropriate and
consistent with your objectives.
Security Guidelines:
Equities
With the exception of limitations and constraints described above, Investment Manager may
allocate assets of the equity portion of the account among various market capitalizations (large,
mid, small) and investment styles (value, growth). Further, Investment Manager may allocate
assets among domestic, international developed and emerging market equity securities.
Total Equities 50%-70%
Equity Style Range
Domestic Large Cap Equity 20%-50%
Domestic Mid Cap Equity 0%-15%
Domestic Small Cap Equity 0%-20%
International Equity (incl. Emerging Markets) 0%-20%
Real Estate Investment Trust (REIT) 0%-10%
Fixed Income
In the fixed income portion of the account, Investment Manager may allocate assets among
various sectors and industries, as well as varying maturities and credit quality that are consistent
with the overall goals and objectives of the portfolio .
Total Fixed Income
Fixed Income Style
Long-term bonds (maturities> 7 years)
Intermediate-term bonds (maturities 3-7 years)
Short-Term bonds (maturities <3 years)
High Yield bonds
City of College Station -115 Other Post-Employment Benefits Trust
Investment Guidelines Document -HighMark Capital Management, Inc.
(v . 8/25/2017 -ARB)
30%-50%
Range
0%-20%
15%-50%
0%-15%
0%-8%
4
RESOLUTION NO. 10-08-20-4.5 Page 29 of 32
Performance Benchmarks:
The performance of the total Plan shall be measured over a three and five-year periods . These
periods are considered sufficient to accommodate the market cycles experienced with
investments. The performance shall be compared to the return of the total portfolio blended
benchmark shown below.
Total Portfolio Blended Benchmark
32.00% S&P500 Index
6.00% Russell Mid Cap Index
9.00% Russell 2000 Index
4.00% MSCI Emerging Market Index
7.00% MSCI EAFE Index
2.00% Wilshire REIT Index
27 .00% Bloomberg Barclays Capital Aggregate Index
6 .75%ML 1-3 Year US Corp/Gov't
1.25% US High Yield Master II
5.00% Citi 1 Mth T-Bill
Asset Class/Style Benchmarks
Over a market cycle, the long-term objective for each investment strategy is to add value to a
market benchmark. The following are the benchmarks used to monitor each investment strategy:
Large Cap Equity S&P 500 Index
Growth
Value
Mid Cap Equity
Growth
Value
Small Cap Equity
REITs
Growth
Value
International Equity
Investment Grade Bonds
High Yield
Security Selection
S&P 500 Growth Index
S&P 500 Value Index
Russell Mid Cap Index
Russell Mid Cap Growth Index
Russell Mid Cap Value Index
Russell 2000 Index
Russell 2000 Growth Index
Russell 2000 Value Index
Wilshire REIT
MSCI EAFE Index
Bloomberg ·Barclays Capital Aggregate Index
US High Yield Master II
Investment Manager may utilize a full range of investment vehicles when constructing the
investment portfolio, including but not limited to individual securities, mutual funds, and exchange-
traded funds. In addition , to the extent permissible, Investment Manager is authorized to invest in
shares of mutual funds in which the Investment Manager serves as advisor or subadviser.
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RESOLUTION NO. 10-08-20-4.5 Page 30 of 32
Investment Limitations:
The following investment transactions are prohibited :
Direct investments in precious metals (precious metals mutual funds and exchange-traded
funds are permissible).
Venture Capital
Short sales*
Purchases of Letter Stock, Private Placements, or direct payments
Leveraged Transactions*
Commodities Transactions Puts, calls, straddles, or other option strategies*
Purchases of real estate, with the exception of REITs
Derivatives, with exception of ETFs*
*Permissible in diversified mutual funds and exchange-traded funds
Duties and Responsibilities
Responsibilities of Plan Sponsor
The Investment Committee of the City of College Station is responsible for:
•
•
Confirming the accuracy of this Investment Guidelines Document, in writing .
Advising Trustee and Investment Manager of any change in the plan/account's financial
situation, funding status, or cash flows, which could possibly necessitate a change to the
account's overall risk tolerance, time horizon or liquidity requirements; and thus would
dictate a change to the overall investment objective and goals for the account.
• Monitoring and supervising all service vendors and investment options, including
investment managers.
• Avoiding prohibited transactions and conflicts of interest.
Responsibilities of Trustee
The plan Trustee is responsible for :
• Valuing the holdings .
• Collecting all income and dividends owed to the Plan.
• Settling all transactions (buy-sell orders).
Responsibilities of Investment Manager
The Investment Manager is responsible for:
• Assisting the Investment Committee with the development and maintenance of this
Investment Policy Guideline document annually.
• Meeting with Investment Committee annual·ly to review portfolio structure, holdings, and
performance.
• Designing, recommending and implementing an appropriate asset allocation consistent
with the investment objectives, time horizon, risk profile, guidelines and constraints
outlined in this statement.
• Researching and monitoring investment advisers and investment vehicles.
• Purchasing, selling, and reinvesting in securities held in the account.
• Monitoring the performance of all selected assets .
• Voting proxies , if applicable .
Recommending changes to any of the above.
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RESOLUTION NO. 10-08-20-4.5 Page 31 of 32
• Periodically reviewing the suitability of the investments, being available to meet with the
committee at least once each year, and being available at such other times within reason
at your request.
• Preparing and presenting appropriate reports.
• Informing the committee if changes occur in personnel that are responsible for portfolio
management or research.
Acknowledgement and Acceptance
I/We being the Plan Sponsor with responsibility for the account(s) held on behalf of the Plan
Sponsor specified below, designate Investment Manager as having the investment discretion and
management responsibility indicated in relation to all assets of the Plan or specified Account. If
such designation is set forth in the Plan/trust, I/We hereby confirm such designation as
Investment Manager.
I have read the Investment Guidelines Document, and confirm the accuracy of it, including the
terms and conditions under which the assets in this account are to be held, managed , and
disposed of by Investment Manager. This Investment Guidelines Document supersedes all
previous versions of an Investment Guidelines Document or investment objective instructions that
may have been executed for this account.
~ Date : 9 -rf-17
Plan S ity of College Station
~~ ~ Date: ~1 /;7
Investment Manager: Andrew Brown , CFA, Senior Portfolio Manager, (41S) 705-7S05
City of College Station -115 Other Post-Employment Benefits Trust
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RESOLUTION NO. 10-08-20-4.5 Page 32 of 32