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JEFFREY R. SMITH, CPA, CGFO, CGMA Clerk of Circuit Court & Comptroller Finance Department 180127' Street Vero Beach, FL 32960 Telephone: (772) 226-1945 TO: Board of County Commissioners FROM: Elissa Nagy, Finance Director THRU: Jeffrey R. Smith, Clerk of the Circuit Court and Comptroller DATE: November 16, 2018 SUBJECT: Changes to OPEB Trust Investment Policy BACKGROUND During the Investment Advisory Committee meeting on November 15, 2018, a change was recommended to the OPEB Trust Investment Policy to clarify the statement on the expected annual rate of return. We are requesting the following change to the OPEB Trust Investment Policy: OLD: 1. Page 3, Section VII — Performance Measures The expected annual rate of return for the long-term portfolio is 6%, which is an actuarial assumption, until amended by the OPEB Trust Board. NEW: 2. Page 3, Section VII — Performance Measures The expected long-term annual rate of return for the portfolio is targeted to be 6%, which is an actuarial assumption, until amended by the OPEB Trust Board. In addition, the change to the makeup of the investment committee in the County investment policy was approved at the August 14, 2018 Board meeting, however, the OPEB Trust Investment Policy needs to be updated as well. We are requesting the following change to the OPEB Trust Investment Policy: OLD: 1. Page 2, Section III.2 — Delegation of Authority and Oversight Procedures An Investment Advisory Committee consisting of the Clerk of the Circuit Court, the Finance Director, the Budget Director, and at least two citizens (who must be financial professionals) selected by the Clerk of the Circuit Court shall meet regularly (at least quarterly) to evaluate investment performance of the OPEB trust fund's investment portfolio, to evaluate current and future liquidity needs and investment strategy, and to review reports prepared for the Board of County Commissioners. 55