HomeMy WebLinkAboutResolution No. 2008-42Suggested by: Administration
CITY OF KENp,Y
RESOLUTYON NO. 2008-42
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, PERTAINING
TO THE INVESTMENT ALLOCATIONS OF THE AIRPORT PERMANENT FUND AND
ESTABLISHING APPROPRIATE BENCHMARKS TO MEASURE PERFORMANCE.
WHEREAS, the City of Kenai Council is authorized to establish investment policies for
the Airport Permanent Fund; and,
WHEREAS, the KMC 7.30.050 (b) permits investment of the Airport Permanent Fund
in various asset classes and the Council believes that establishing asset allocation
criteria for these various asset classes is in the best interest of the City of Kenai; and,
WHEREAS, the Council intends to annually review the asset allocations and
performance of the Airport Permanent Fund; and,
WHEREAS, providing benchmarks to measure the performance of the fund is prudent.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the Council adopts the asset allocations and performance measurement
standards as follows:
AIRPORT PERMANENT FUND ASSET ALLOCATION PLAN AND PERFORMANCE
IviEASUREMENT TARGETS
Section l: The Asset Allocation Plan and Target Weightings with range restrictions are
as follows:
ASSET CLASS
Fixed Income
Large-Cap Domestic Equity
International Equity
Mid-Cap Equities
Small-Cap Equities
International Emerging Markets
Real-estate equities
TARGET % WEIGHTING RANGE
45 40-65
20 15-25
10 5-15
10 5-15
S 0-10
S 0-10
5 0-10
Section 2: The performance of the Fund and investment managers will be measured
as follows:
Performance measurement of the Fixed Income allocation will be measured against the
Target weighting, using the Lehman Intermediate Government/Credit Index for the
benchmark.
Resolution No. 2008-42
Page 2
Performance measurement of the Large-Cap Domestic Equity allocation will be
measured against the Target weighting, using the Standard & Poor's S00 Index for the
benchmark.
Performance measurement of the International Equity allocation will be measured
against the Target weighting, using the Morgan Stanley Europe, Australia, Far East
(EAFE) Index for the benchmark.
Performance measurement of the Mid-Cap Equity allocation will be measured against
the Target weighting, using the Standard 8v Poor's 400 Mid-Cap Index as the
benchmark.
Performance measurement of the Small-Cap Equity allocation will be measured
against the Target weighting, using the Standard & Poor's 600 Small-Cap Index as the
benchmark.
Performance measurement of the International Emerging Markets allocation will be
measured against the Target weighting, using the Morgan Stanley Emerging Markets
Index as the benchmark.
Performance measurement of the Real-Estate Equities allocation will be measured
against the target weighting, using the Standard 8s Poor's REIT Composite Index as the
benchmark.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of July
2008.
PAT PORTER, MAYOR
ATTEST
Carol L. Freas, City Clerk
Approved by Finance:
(07/08/2008) hl