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3 <br />The City of Pleasanton “City” has established a section 115 Trust known as the City of Pleasanton <br />Section 115 Pension Trust (the “Trust”). This Trust will be used to invest monies to fund the City’s <br />unfunded liability in the California Public Employee Retirement System (“CalPERS”). The City has <br />developed two sub-accounts under this Trust. The sub-account for this portfolio is named the ‘Capital <br />Growth” account. It is seen as the pool of assets that maintain a long-term horizon, and a growth <br />objective is the primary focus. The City of Pleasanton City Council (“Council”) has given authority to <br />the Plan Administrator to establish and adopt the investment Policy Statement (“Policy Statement”) for <br />the following purposes. <br />Purpose <br />Funds set aside in the Section 115 Trust are safeguarded from diversion to other budgetary uses and <br />generally may be invested in a broader range of securities than would typically be permitted for public <br />agency operating funds, potentially increasing earnings. Therefore, higher returns can improve the City’s <br />ability to meet future pension obligations. An additional advantage of holding funds in the Trust rather <br />than contributing an equivalent amount directly to CalPERS is that the City retains control over the <br />timing and amount of disbursements from the Trust. Retaining control of the funds in the Trust provides <br />the flexibility to meet current or accrued liabilities based on the financial circumstances at that time. The <br />City also controls the timing of contributions to the Trust. <br />The main investment objective of the Trust is to achieve long-term growth of Trust assets by maximizing <br />long-term rate of return on investments and minimizing risk of loss. <br />The purpose of this Policy Statement is to achieve the following: <br />1. Document investment objectives, performance expectations, and investment guidelines for <br />Fund assets. <br />2. Establish an appropriate investment strategy for managing all Trust assets, including an <br />investment time horizon, risk tolerance ranges, and asset allocation to provide sufficient <br />diversification and overall return over the long-term time horizon of the Trust. <br />3. Establish investment guidelines to control overall risk and liquidity. <br />4. Establish periodic performance reporting requirements to monitor investment results and <br />confirm that the investment policy is being followed. <br />5. Comply with fiduciary, prudence, due diligence, and legal requirements for Trust assets. <br />Investment Authority <br />The City has appointed the Plan Administrator (the “Administrator”) to oversee certain policies and <br />procedures related to the operation and administration of the Trust. The Administrator will have <br />authority to implement the investment policy and guidelines in the best interest of the Trust to best satisfy <br />the purposes of the Trust. In implementing this Policy Statement, the Administrator believes it may <br />delegate certain functions to: <br />Page 138 of 658