19-4.0031. General Policies and Review Procedures for Investments  

Effective on Sunday, June 8, 2014
  • 1(1) The Fund shall be invested pursuant to the provisions set forth in the Florida Statutes, including but not limited to Sections 23215.47 24and 25215.44, F.S. 27The Board shall approve an Investment Policy Statement which includes, among other items, the investment objectives of the Fund and evaluation criteria necessary to measure the investment performance of the Fund.

    58(2) The Executive Director shall present to the Investment Advisory Council a continuing review and study of its general portfolio strategy to meet the objectives of the Fund. A continuous review of the overall economic conditions shall be included.

    97(3) Changes in security holdings are the responsibility of the Executive Director, and must conform with standards of professional investment practice and prudence.

    120(4) The Executive Director shall govern the day-to-day operation of the various aspects of portfolio management consistent with the Investment Policy Statement.

    142(5) The Executive Director shall from time to time, or when directed by the Investment Advisory Council or the Board, present recommendations to the Board concerning investment activity not otherwise authorized by Sections 215.44-.53, F.S. Such new investment activity is authorized under authority in Section 187215.47(6), F.S. 189The Executive Director shall monitor investment authority so granted, and ensure that the total of such investments does not exceed the statutory limit.

    212(6) For the purpose of implementing Section 219215.47, F.S., 221any security, interest or investment vehicle or obligation issued by a private entity, trust or organization holding investments authorized by Section 242215.47, F.S., 244will be considered an investment authorized by Section 252215.47, F.S., 254provided that the predominant function of the entity, trust or organization is to hold and/or manage said underlying investments.

    273(7) The term “consistent with sound investment policy,” which is contained in Section 287121.153(1)(c), F.S.; 289the term “consistent with the investment policy set forth in Sections 300215.44(2) 301and 302215.47(10), F.S.304” which is contained in Section 310121.153(2)(a), F.S.; 312and terms of similar meaning, which exist or shall exist in the laws of Florida, relating to the responsibility of the Board to perform its investment functions in accordance with accepted fiduciary standards, or words of like import, shall mean that the Board, in addition to complying with the aforecited laws, in performing its investment duties in accordance with these laws shall comply with the fiduciary standards set forth in the Employee Retirement Income Security Act of 1974 at 39129 U.S.C. s. 1104(a)(1)(A) 395through (C), to wit: A fiduciary shall discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries and

    420(a) For the exclusive purpose of:

    4261. Providing benefits to participants and their beneficiaries; and

    4352. Defraying reasonable expenses of administering the plan;

    443(b) With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;

    486(c) By diversifying the investments of the plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.

    515(8) For the purpose of implementing Sections 522215.44(2) 523and 524215.47(10), F.S., 526the Executive Director shall not violate or cause the violation of any exclusive U.S. Federal laws, including but not limited to the federal securities laws, which pre-empt the laws of the State of Florida pertaining to the investment activities of the Board. Particular emphasis shall be given to ensure that a violation of Section 10 of the Securities Exchange Act of 1934, as well as Rule 10b-5 of the Securities and Exchange Commission (“SEC”), does not occur with respect to the release of material non-public or confidential insider information (“insider information”). Insider information is considered to include, but not be limited to, information relating to the investment activities of the Board (i) which if released by the provider of the information to the Board would cause the provider to violate any of the above-cited laws or (ii) information which if released by the Board to an individual would enable this individual to take advantage of uninformed investors. For the purposes of this subsection, the term “material” has the same meaning as given in SEC Rule 12b-2 which is: “The term “material,” when used to qualify a requirement for the furnishing of information as to any subject, limits the information required to those matters to which there is a substantial likelihood that a reasonable investor would attach importance in determining whether to buy or sell the securities registered.” The Securities and Exchange Act of 1934, as well as SEC Rules 10b-5 and 12b-2, can be obtained by accessing the SEC website at sec.gov and clicking on the Laws & Regulations section.

    787Rulemaking Authority 789215.52 FS. 791Law Implemented 793215.44, 794215.45, 795215.47 FS. 797History–New 2-10-82, Amended 12-25-85, Formerly 19-4.031, Amended 12-14-86, 12-10-87, 12-18-88, 6-1-89, 12-11-89, 2-13-90, 3-9-06, 6-8-14.


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