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III. DELEGATION OF A UTHORITYAND OVERSIGHT PROCEDURES Continued 2. An Investment Advisory Committee consisting of the County Administrator or his designee 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. The Committee will recommend appropriate investment policies and procedures for all investment activities carried out by the OPEB Trust Board. The Committee will perform an annual review of those investment policies and procedures. 3. The OPEB Trust Board may use professional money management to assist in the investment of these funds consistent with this policy. If such management is employed, the managers shall act as a fiduciary to the OPEB Trust Board. Money managers are required to provide investment strategy reviews and performance summaries to the Investment Advisory Committee quarterly or more frequently if requested. Money managers shall provide portfolio valuations monthly or more frequently if requested. All assets will be held by a third party custodial as selected by the OPEB Trust Board. An outside consultant may be utilized to evaluate the investment performance of outside money managers. The consultant will provide performance analysis that will include, but not be limited to, a strategic analysis including a report on asset allocation, risk analysis, and appropriate, if any, changes to the percentages therein. This study will be used to assist the OPEB Trust Board in the determination of the appropriate investment allocation to maximize the return and minimize the risk to the assets of the OPEB trust funds. This study may include a recommendation to add or delete asset classes as is warranted by the risk/reward analysis and is subject to OPEB Trust Board approval. The OPEB Trust Board is not bound by acceptance or denial of recommendations presented by the consultant. If no consultant is hired, then the individual mangers are responsible to provide the same information. IV. PRUDENCE/fiduciary standards The standard of prudence to be applied by all parties with investment responsibilities for the OPEB trust shall be the "Prudent Person Rule", as detailed by FS 218.415(4), which may be updated or amended from time to time. The Prudent Person Rule states, "Investments should be made with judgment and care, under circumstances then prevailing, 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 from the investment." The Prudent Person Rule shall be applied in the context of managing the overall portfolio. 2 94