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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Kim Shanklin, Chief People Officer |
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PRESENTER(S): |
Ann Green-Barton, Director of Total Rewards |
TITLE:
title
R2022-10-01 - Approving and Adopting a Revised Investment Policy of the Authority’s Employee Retirement Plan
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Adopt resolution R2022-10-01 to approve the revised Retirement Plan Investment Policy and authorize an amendment to the Authority’s investment management agreement with Cambridge Associates to incorporate the new Investment Policy.
BACKGROUND:
The Pension Committee has been designated the administrator of UTA’s Retirement Plan and Trust Agreement. Cambridge Associates presented at the June 2, 2022 Pension Committee meeting on the current investment policy statement and target asset allocations. Cambridge recommended the Pension Committee consider a change to the strategic asset allocation to better position the portfolio for today’s market conditions and provide portfolio managers greater investment opportunities.
The Pension Committee is required by Board Policy 2.1 Financial Management and Resolution R2019-08-01 to present any proposed changes in funding assumptions and contribution rates, selection of investment management services, or proposed policies and procedures to the Board of Trustees for consideration and approval.
DISCUSSION:
As part of the investment discussions, Cambridge recommended changing the asset allocation of the portfolio to eliminate one asset class and introduce a new asset class that would permit investment in private equity opportunities. The purpose of this change is to add return potential and lower portfolio volatility through more diversification. This revision to the target asset allocations eliminates Liquid Diversifiers and allows for up to 10% investment in Private Equity. On June 2, 2022, the Pension Committee unanimously approved a motion to recommend the Board of Trustees adopt the revised Retirement Plan Investment Policy.
ALTERNATIVES:
If the revised Retirement Plan Investment Policy is not adopted, the current version of the Investment Policy will remain in effect.
FISCAL IMPACT:
There is no fiscal impact to the current budget.
ATTACHMENTS:
R2022-10-01 Approving and Adopting a Revised Investment Policy of the Authority’s Employee Retirement Plan, including:
- Exhibit A - UTA Investment Policy Statement October 2022 REDLINE
- Exhibit B - Amendment #1 to the Investment Management Agreement (Cambridge Associates)