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R2166 R E S O L U T I O N NO. 2166 WHEREAS, The Metropolitan St. Louis Sewer District has established an Employee Pension Plan in accordance with provision of the District's Plan, Section 3.020, paragraph 22, and through the enactment of Ordinance No. 4641 as amended which provides for the pensioning and other retirement benefits of employees of the Metropolitan St. Louis Sewer District and spouses and minor children of deceased employees, and provides for the payment of public funds for such purposes, in accordance with the Missouri Constitution of 1945, as amended, and the Missouri Statutes enacted authorizing said Pension Plan, and the Plan of The Metropolitan St. Louis Sewer District, and WHEREAS, the Board shall select the manner of funding the Pension Plan, whether by insurance or annuity contracts, trust agreement, or any other means, and shall have authority to select or change any Carrier, Trustee or depository with which said contracts or trust agreement shall be entered into and with which monies of the Pension Fund shall be held, managed and invested. WHEREAS, the Board of Trustees of The Metropolitan St. Louis Sewer District in fulfilling its fiduciary responsibility for the Pension Plan, periodically reviews the benefits, investments of pension funds, and general administration of the pension plan, and WHEREAS, the Board of Trustees of The Metropolitan St. Louis Sewer District presently receives services from Kemper 2 Securities, Inc., pension fund investment consultants, per Ordinance No. 9114, adopted November 17, 1993, to generally advise the Board of Trustees as they have evaluated how the plan assets have been invested for the benefit of the current and prospective retirees and their beneficiaries, and WHEREAS, Kemper Securities, Inc., pension fund investment consultant, has conducted a review and evaluation of the Employee Pension Fund investment activities, and has made certain pension fund investment recommendations to the Board of Trustees, NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT that the assets of the Employee Pension Plan be invested with the approval of the Board in the manners indicated below: (1) A range of sixty-five percent (65%) to seventy percent (70%) of the total Pension Plan assets be invested in equity instruments. The current equities portion of the Pension Plan investments shall be set at a level of sixty-seven percent (67%) and shall be divided into general investment component categories as follows: (1) Value Equity - thirty-seven percent (37%) (2) Growth and Income - thirty percent (30%) (3) Large Capitalization Growth - twenty-five percent (25%) 3 (4) Small Capitalization Growth - eight percent (8%) (2) A range of thirty percent (30%) to thirty-five percent (35%) of the total Pension Plan assets shall be invested in fixed income instruments. The current fixed income portion of the Pension Plan investments shall be set at a level of thirty-three percent (33%) and shall be divided into general investment component categories as follows: (1) Fixed income instruments - eighty-five percent (85%) (2) Short Term Investment Fund (STIF) - fifteen percent (15%) The Board of Trustees may from time to time alter the asset mix, the various investment instruments, and portfolio managers of the pension investment plan in response to changing investment market conditions. BE IT FURTHER RESOLVED that the staff prepare the necessary resolutions and ordinances to carry out the recommendations of Kemper Securities, Inc. for the District's investment policy, and asset allocations for investment purposes, said resolutions and ordinances to be submitted to the Board for consideration the first meeting in January, 1995. BE IT FURTHER RESOLVED that as a part of the pension fund 4 investment policy, that Kemper Securites, Inc. provide a quarterly report to the Board of Trustees concerning the performance of each pension fund investment portfolio manager and a recommendation on the pension fund asset investment mix for the coming quarter. The foregoing Resolution was adopted January 12, 1995.