City of Camarillo
CITY COUNCIL POLICY
Section: Finance Date Adopted: June 13, 2018 Last Amended: October 13, 2021
Subject: Pension Rate Stabilization Program (PRSP)
Trust Investment Policy
Number: 3.16 Page 1 of 2
PURPOSE
This policy outlines parameter s for the investment of f unds within the Pension Rate Stabilization Program (PRSP) Trust. This po licy is independent of the City’s Investment Policy and other funds for which the City prov ides financial management services. This policy is specific to the PRSP Trust and PARS as the selected Plan Administrator.
POLICY
Full Investment Authority will be delegated to Highmark Capital PFM Asset Management as the selected In vestment Manager to actively manage the PRSP Trust (Program) according to the designated risk tolerance. The primary objective is to maximize total Plan return, subject to the risk and quality constraints set forth by the Strategic Asset Allocation model. The Plan has selected the Moderate Asset Allocation Strategy. The primary goals of the Moderate Asset Allocation Strategy are growth of principal and income. It is expected that dividend and interest income will comprise a significant portion of the total return, although growth through capital appreciation is equally important.
Prohibited assets include precious metals, venture capital, short sales, purchase of letter stock, private placements, or direct payments, leveraged tr ansactions, commodities or other option strategies, purchases of real estate, and derivatives.
A. Return oObjective
Achieve a reasonable return within the risk parameters under the Asset Allocation Strategy compared to the established benchmark.
B. Asset Allocation Strategy
Strategic Ranges under the Moderate Asset Allocation Strategy 0 – 20% Cash
40 – 60% Fixed Income
40 – 60% Equity
Adopted 3.16, June 13, 2018 Policy 3.16 Amended October 13, 2021 Page 2 of 2
BC. Funding
Annually, through the budget process, City Council will determine the PARS Trust annual contribution amount. City Council is co mmitted to attain and maintain fully funded status within a 20-year period (FY 2036-37).
CD. Disbursements
Annually, through the budget process, City Council will determine if a PARS Trust distribution will be deposited in the Cit y’s CalPERS account. City Council will determine the amount based on the current CalPERS Actuarial Valuation and staff reports.
DE. Reporting
The PARS activity statement will be delivered to staff and City Council monthly.
The Highmark Capital PFM performance statement will be delivered to staff and City Council quarterly and will be reviewed on a semi-annual basis. The portfolio Investment mManager will keep staff apprised of any material changes in Highmark Capital’s PFM’s outlook, recommended investm ent policy and tactics, and be available on a reasonable basis for telephone communication as needed.
EF. Annual Review
The fiscal year end performance statement and policy will be reviewed annually by the Investment Committee and the City Council.