res_8926 - Laserfiche WebLink

Home

INVESTMENT POLICY STATEMENT PURPOSE The purpose of this statement is to communicate a clear understanding of the Roseville Firefighter's Relief Association Benefit Plan investment policies and objectives. This statement will outline an overall philosophy that is specific enough to explain the plan's expectations, but sufficiently. flexible to allow for changmg economic conditions and securities markets. The policy will provide realistic risk policies to guide the Trustees toward long-term rate of return objectives, which will serve as standards for evaluating investment performanee. The policy also will establish the investment restrictions to be placed upon the Trustees, and will outline procedures for policy and perfonnance review. RESPONSIBILITIES OF THE TRUSTEES The Trustees shall be fully responsible for the ongoing management and oversight of the Roseville Firefighter's Relief Association Benefit Plan. These responsibilities include those fiduciary and management obligations discussed in appropriate Minnesota Statutes. In addition, Trustees shall comply with the following procedures: Investments will be made for the sole interest and the exclusive purpose of providing the optimal return within the risk constraints described herein. · The assets must be invested WiÙ1 the care, skill and diligence that a prudent man acting in this capacity would undertake. · All investments will be made wiÙ1in Ù1e guidelines of quality, marketability and diversifieation mandated by controlling statutes. Investment authorization shall be given by either the President or Treasurer of the Relief Association to the appropriate investment finn representative who will handle the transaction. OBJECTIVES OF THE PLAN The objectives of Ù1e plan should be pursued with a long-tenn time horizon in mind; that is to say, greater than 10 years. It is designed to maximize the returns without exposure to undue risk, as defined herein. Whereas it is understood that fluctuating rates of return are characteristic of the securities markets, the Trustees' greatest coneern should be long-term appreciation of the assets, preservation of principal, and consisteney of total portfolio returns. 1. The account's total expected return should exceed the Consumer Price Index by 3% annually. Actual returns should exceed the expected return about half of the time. Expected returns should exceed actual returns about half of the time. 2