Specifications include, but are not limited to: The OCIO shall provide services to the Town with respect to the management of the OPEB Fund’s assets that will include, but will not be limited to: 1. Creating and managing a Model Portfolio based on IPS Investment Guidelines, which shall include: • Portfolio construction and investment management • Portfolio monitoring and rebalancing, including the execution of trades • Asset Allocation analysis and quarterly review • Fiduciary best practices. 2. Ongoing review of the IPS, with a formal annual recommendation to the BET. See Appendix II (Exhibit D) for the proposed IPS. Please note, the approved IPS may be provided in an addendum following review and approval by the BET. 3. Reporting Fund performance as follows: • MONTHLY: Performance Report with portfolio performance versus Benchmarks including monthly, quarterly, calendar year-to-date, fiscal year-to-date, 1-year rolling, annualized 3-year, annualized 5-year, and annualized 10-year returns as applicable; Portfolio asset class allocation versus the Benchmarks. The report should be submitted by the 5th business day of the month. • QUARTERLY: Portfolio Review meeting conducted virtually by the 10th business day in January, April, and October. Reports for the Quarterly Portfolio Review should include: o Performance Report o Attribution analysis by Broad and sub-asset classes for quarter, 1-year, 3-year and 5-year rolling returns, and fiscal year to date returns, as applicable. o Proposed changes to the asset allocation model. • ANNUALLY: Portfolio and Market Review conducted virtually or in-person by the 10th business day in July. Reports for Annual Portfolio Review and Market Review should include: o Performance Report o Attribution analysis by broad and sub-asset classes for quarter, 1-year, 3-year and 5-year rolling returns, as applicable. o Portfolio Risk reporting, including portfolio and benchmark volatility, Sharpe ratio, information and other performance and risk metrics utilized in the management of the Portfolio. o Review of markets over the fiscal year. o Market outlook and asset-class expected returns. o Recommended changes to Investment Guidelines and Investment Policy Statement, as applicable.
