Fort Walton Beach Ordinance — 1876--beal cemetery perpetual fund — reading text

THIRD -PARTY CUSTODIAL AGREEMENTS Securities, with the exception of certificates of deposits, shall be held with a third party custodian; and all securities purchased by, and all collateral obtained by the Fund, should be properly designated as an asset of the Beal Memorial Cemetery Perpetual Care Fund, City of Fort Walton Beach. The securities must be held in an account separate and apart from the assets of the financial institution. A third party custodian is defined as any bank depository chartered by the Federal Government, the State of Florida, or any other state or territory of the United States which has a branch or principal place of business in the State of Florida, or by a national association organized and existing under the laws of the United States which is authorized to accept and execute trusts and which is doing business in the State of Florida. Certificates of deposits will be placed in the provider' s safekeeping department for the term of the deposit. Ordinance 1876, Adopted March 12, 2013 Page 9 of 12  City of Fort Walton Beach, FL BEAL MEMORIAL CEMETERY INVESTMENT POLICY The custodian shall accept transaction instructions only from those persons who have been duly authorized by [ he Finance Director and which authorization has been provided, in writing, to the custodian. No withdrawal of securities, in whole or in part, shall be made from safekeeping unless by such a duly authorized person. The custodian shall provide the Finance Director with safekeeping statements that provide detail information on the securities held by the custodian. On a monthly basis, the custodian will also provide reports that list the dates and nature of all transactions as well as all securities held for the Fund and the book value and the market value of each as of month -end. Security transactions between a broker/dealer and the custodian involving the purchase or sale of securities by transfer of money or securities must be made on a " delivery vs. payment' basis, if applicable, to ensure that the custodian will have the security or money, as appropriate, in hand at the conclusion of the transaction. Securities held as collateral shall be held free and clear of any liens. XIX. VOTING OF PROXIES The Investment Advisor( s) will vote the shares of the investments. The Portfolio Manager( s) will vote securities in their respective ponfolio( s), consistently with its proxy policy and in the best interest of the Fund. XX. INVESTMENT POLICY ADOPTION The Investment Policy shall be adopted by ordinance of the City Council. The Finance Director shall review the Policy annually and submit recommendations to the City Manager for City Council consideration and approval. Ordinance 1896, Adopted March 12. 2013 NN, 9 of 12  City of Fort Walton Beach, FL BEAL MEMORIAL CEMETERY INVESTMENT POLICY Attachment A - Review and Evaluation of Investment Advisor The Finance Director will meet at least annually with the Investment Advisor(s) to review market conditions and investment results. These reviews will focus on: A. The Investment Advisor' s adherence to the Fund' s Investment Policy guidelines ( i. e. compliance) B. Investment results C. Material changes to the Fund' s future investment strategy D. Material changes in the Investment Advisor' s organization, such as philosophical or personnel changes Guidelines for evaluation, retention, and replacement of Investment Advisor: A. Communication regarding changing market conditions B. Responsiveness to questions or correspondence from the City C. Portfolio Manager( s) performance (quarterly, annual, rolling) against peers, benchmarks, and market indices Deviation from the Fund' s Investment Policy is grounds for immediate termination of Investment Advisor. Ordinance 1876, Adopmd March 12, 2013 Page 10 of 12  City of Fort Walton Beach, FL BEAL MEMORIAL CEMETERY INVESTMENT POLICY Attachment B - Review and Evaluation of Portfolio Manager The Finance Director will meet at least annually with Portfolio Manager( s) or representative. These reviews will focus on: A. The Portfolio Manager' s adherence to the Fund' s Investment Policy guidelines ( i. e. compliance) B. Comparison of the Portfolio Manager' s results to the investment objectives C. Comparison of the Portfolio Manager' s results against a universe of comparable funds and investment styles D. Opportunities available in the market E. Material changes in the Portfolio Manager' s organization, such as philosophical or personnel changes Guidelines for evaluation, retention, and replacement of Portfolio Manager: A. Compare performance to established benchmarks ( quarterly, annual, rolling) B. Compare performance to established target (e. g.: To outperform benchmark/ index and to achieve investment returns, such as maintaining purchasing power defined as returns in excess of inflation as defined by the United States Consumer Price Index) A Portfolio Manager will be rated in a " Favorable Status' if he is delivering favorable performance and there are no outstanding organizational issues. A Portfolio Manager will be in a " Caution Status" if the three -year performance is trailing the established benchmark. A Portfolio Manager that falls in " Caution Status" will undergo a formal review by the Investment Advisor. The review will address how the Portfolio Manager will move back to " Favorable Status" or recommend termination. A Portfolio Manager can move back to " Favorable Status" by improving performance above the criteria as listed above. Highest priority will be given to a Portfolio Manager failing to meet the five- year target and next to those failing to meet the three -year target. There may be situations where immediate problems, questions, or short -term performance issues arise regarding a Portfolio Manager and the priority will shift to review these situations first. Reasons for immediate termination of Portfolio Manager: A. Deviation from the Fund' s Investment Policy or instructions without written authority B. Substantial deviation from investment disciplines and process P., 11 J 12 Ouhnonce 1876, Adopted March 12. 2013  City of Fort Walton Beach, FL BEAL MEMORIAL CEMETERY INVESTMENT POLICY Attachment C — Acknowledgement of Receipt of Current Investment Policy As an authorized Investment Advisor or Portfolio Manager managing or conducting investment transactions on behalf of the Beal Memorial Cemetery Perpetual Care Fund of the City of Fort Walton Beach, FL, I hereby acknowledge receipt of the Fund' s most current Investment Policy: Ordinance 1876, adopted March 12, 2013 Investment Advisor Firm Signature of Investment Advisor Printed Name of Investment Advisor Date Page 12 of 12 Ordinance 1876, Adopted March 12, 2013