At a minimum, investment manager reviews will include a quarterly quantitative performance review conducted by the Program’s consultant. Specific evaluation criteria are stated in the investment guidelines that have been individually prepared for each investment option pursuant to its specific role in the Program. As necessary, the evaluation may also include an annual site visit to review each portfolio manager's operations. This portion of the evaluation may be conducted by a member of the Board, the Investment Committee, or Board Staff, as may be designated either by the Board or the Investment Committee. REBALANCING In order to maintain the level of risk the Board has established for each respective option, the asset class allocation within Option 9 and Option 10 will be monitored monthly and rebalanced to the specified target when the allowable ranges are exceeded. The portfolio should be brought back into compliance within five business days. The following ranges will apply: Option 9 Targeted Allowable Range Weight Growth Portfolio 20.00% 17.00% - 23.00% Value Portfolio 20.00% 17.00% - 23.00% Index Portfolio 20.00% 17.00% - 23.00% Mid Cap Portfolio 10.00% 8.00% - 12.00% Small Cap Portfolio 10.00% 8.00% - 12.00% International Equity Portfolio 20.00% 17.00% - 23.00% Option 10 Targeted Weight Allowable Range Equity Portfolio (Option 9) 50% 48 52% – Fixed Income Portfolio (Option 50% 48 52% – 7) In addition, portfolio balances within Option 11 will require rebalancing both with respect to the equity / fixed income mix within each age bracket and with respect to the targeted mix as a beneficiary moves from one age bracket to the next. The following ranges will apply to each of the age brackets within Option 11: Targeted Allowable Targeted Allowable Fixed Fixed Equity Equity Years to Income Income Allocation Range Age Bracket Enrollment Allocation Range
At a minimum, investment manager reviews will include a quarterly quantitative performance review conducted by the Program’s consultant. Specific evaluation criteria are stated in the investment guidelines that have been individually prepared for each investment option pursuant to its specific role in the Program. As necessary, the evaluation may also include an annual site visit to review each portfolio manager's operations. This portion of the evaluation may be conducted by a member of the Board, the Investment Committee, or Board Staff, as may be designated either by the Board or the Investment Committee. REBALANCING In order to maintain the level of risk the Board has established for each respective option, the asset class allocation within Option 9 and Option 10 will be monitored monthly and rebalanced to the specified target when the allowable ranges are exceeded. The portfolio should be brought back into compliance within five business days. The following ranges will apply: Option 9 Targeted Weight Allowable Range Growth Portfolio 20.00% 17.00% - 23.00% Value Portfolio 20.00% 17.00% - 23.00% Index Portfolio 20.00% 17.00% - 23.00% Mid Cap Portfolio Small Cap Portfolio International Equity Portfolio 10.00% 10.00% 20.00% 8.00% - 12.00% 8.00% - 12.00% 17.00% - 23.00% Option 10 Targeted Weight Allowable Range Equity Portfolio (Option 9) 50% 48 – 52% Fixed Income Portfolio (Option 7) 50% 48 – 52% In addition, portfolio balances within Option 11 will require rebalancing both with respect to the equity / fixed income mix within each age bracket and with respect to the targeted mix as a beneficiary moves from one age bracket to the next. The following ranges will apply to each of the age brackets within Option 11: Age Bracket Years to Enrollment Targeted Equity Allocation Allowable Equity Range Targeted Fixed Income Allocation Allowable Fixed Income Range
invitation-to-negotiate-16-02-audit-services-final.docx