HomeMy WebLinkAboutResolution 95-078RESOLUTION NO.95-78
ADOPTING INVESTMENT PERFORMANCE
BENCHMARKS AND A SCHEDULE OF FREQUENCY OF
INVESTMENT PERFORMANCE REPORTS
A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS
OF COUNTY SANITATION DISTRICTS NOS.1,2,3,5,6,
7,11,13 AND 14 OF ORANGE COUNTY,CALIFORNIA
ADOPTING INVESTMENT PERFORMANCE
BENCHMARKS AND A SCHEDULE OF FREQUENCY OF
INVESTMENT PERFORMANCE REPORTS IN
ACCORDANCE WITH THE DISTRICTS’ADOPTED
INVESTMENT POLICY
LA A A ££.A*J.A ALL A A £**
WHEREAS,the Boards of Directors have adopted a Minute Order on May 24,
1995,adopting a comprehensive Investment Policy for use by the Districts’Treasurer
and authorizing Investment Managers;and,
WHEREAS,the Districts’Investment Policy calls for establishing specific
performance benchmarks and objectives;and,
WHEREAS,the Districts’Investment Policy provides for receiving investment
reports;and,
WHEREAS,the Districts’Treasurer and independent consultants have
developed both investment performance benchmarks and a schedule of contents and
frequency of investment performance reports,which have been reviewed and
considered by the Boards of Directors.
NOW,THEREFORE,the Boards of Directors of County Sanitation Districts Nos.
I,2,3,5,6,7,II,13 and 14 of Orange County,California,
1
DO HEREBY RESOLVE,DETERMINE AND ORDER:
Section 1 That the Boards of Directors hereby adopt the following specific
benchmarks for their two investment funds,in accordance with Section 13.0 of the
Districts’Investment Policy:
LIQUID OPERATING MONIES The Short-Term Operating Fund will be
compared to the three-month T-Bill rate,and the Callan Active Cash Fixed
Income Style Group.The Callan Active Cash Fixed Income Style Group
represents a peer group of managers who operate with a maximum
maturity of one year.
LONG-TERM OPERATING MONIES The Long-Term Operating Fund
will be compared to the Merrill Lynch Government and Corporate One-to
Five-Year Maturity Index and to the Callan Defensive Fixed Income Style
Group.
Section 2 That the Boards of Directors hereby adopt a Performance
Monitoring and Reporting Schedule,as required by Section 14.0 of the Districts’
Investment Policy,as set forth on Exhibit “A”,attached hereto and incorporated herein
by reference.
PASSED AND ADOPTED at a regular meeting held July 26,1995.
2
EXHIBIT “A”~,—
COUNTY SANITATION DISTRICTS OF ORANGE COUNTY
PERFORMANCE MONITORING &REPORTING
FOR THE
DISTRICTS’INVESTMENT PROGRAM
POLICY
REFERENCE PERFORMANCE CHARACTERISTIC REPORTING PARTY~
14.1.1
14.1.2
14.1.3
14.1.4
14.1.5
14.1.6
14.1.7
14.1.8
14.1.9
ADDL’
ADDL
ADDL
ADDL
Cost and market value of the portfolio (monthly mark-to-market).
Modified duration of the portfolio compared to benchmark.
Dollar change in value of the portfolio for a 1%change In Interest rate.
Percent of portfolio invested in reverse repurchase agreements,and a schedule which matches the
maturity of such reverse repurchase agreements with the cash flows which are available to repay
them at maturity.
For the Liquid Operating Monies account only,the percent of porffolio maturing within 90 days.
Average portfolio credit quality.
Percent of portfolio with credit ratings below A”by any rating agency,and a description of such
securities.
Listing of any transactions or holdings which do not comply with this policy or with the California
Government Code.
Time-weighted total rate of return for the portfolio for the prior three months,twelve months,year-
to-date,and since inception compared to the benchmark returns for the same periods.
Comparison of portfolio performance to market index benchmark.
Comparison of Manager’s performance to peer group benchmark.
Monitoring of organizational and structural changes of investment management firm.
Audit_portfolios_for_compliance_with investment_policy_guidelines.
PIMCO MELLON CALLAN
M,0 M,Q 0
M,0 Q
M,Q 0
M,0 0
M,0 M,0 0
M,0 M,0 0
M,Q M,Q 0
M,0 0
M,0 0
M,0 0
Q
0
0
Notes
=Monthly EXHIBIT “A”
Q =Quarterly
ADDL =Monitoring of Additional Performance Characteristics
STATE OF CALIFORNIA)
)SS.
COUNTY OF ORANGE
I,PENNY KYLE,Secretary of the Boards of Directors of County Sanitation
Districts Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,California,do
hereby certify that the foregoing Resolution No.95-78 was passed and adopted at
a regular meeting of said Boards on the 26th day of July,1995,by the following
vote,to wit:
AYES:George Brown,John C.Cox,Jr.,Jan Debay,Barry Denes,
Shirley Dettloff,Norman Z.Eckenrode,James M.Ferryman,
James H.Flora,Don R.Griffin,John M.Gullixson,Barry
Hammond,Victor Leipzig,Wally Linn,Mark A.Murphy,Margie
L.Rice,Thomas R.Saltarelli,Sal A.Sapien,George Scott,
Sheldon S.Singer,William G.Steiner,Peer A.Swan,Charles E.
Sylvia,Daniel T.Welch,Bob Zemel
NOES:None
ABSENT:Cecilia L.Age,Burnie Dunlap,Pat McGuigan,Glenn Parker,
Julie Sa
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official
seal of County Sanitation District No.1 on behalf of itself and Districts Nos.2,3,
5,6,7,11,13 and 14 of Orange County,California,this 26th day of July,1995.
Penny Kyle,~d~freta~f
Boards of Dithdtors~ounty Sanitation
Districts Nos.1,2,,5,6,7,1 1,13 and
14 of Orange County,California