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R3183RESOLUTION NO. 3183 WHEREAS, the Metropolitan St. Louis Sewer District has established an Employee Pension Plan in accordance with the Charter Plan, as amended June 5, 2012, Section 3.020(22). Article 9 of the Pension Plan allows the Board of Trustees to appoint investment managers and direct the Trustee of the Pension Plan to invest a specified portion of the Pension Fund in a particular asset or assets, and WHEREAS, in the form of a Pension Plan, Ordinance No. 13796, as amended, provides for the pensioning and other retirement benefits of employees of the MSD and spouses and minor children of deceased employees, and provides for the payment of public funds for such purposes, in accordance with the MO Constitution of 1945, as amended, and the MO Statutes enacted authorizing said Pension Plan, and WHEREAS, specifically, Article 9.2 of the Pension Plan provides that the Board of Trustees of the District, may from time to time, appoint one or more investment managers direct any Trustee or Trustees of the Pension Plan with respect to all or a specified portion of the assets of the Pension Fund held by said Trustee. Such investment managers must meet the requirements of section 3(38) of the Employee Retirement Income Security Act of 1974, P.L. 93- 406, as amended, and WHEREAS, specifically, Section 9.3 of the Pension Plan provides that the Board of Trustees of the District may, from time to time, direct the Trustee of the Pension Plan to invest a specified portion of the Pension Fund in a particular asset or assets, and WHEREAS, Resolution No. 3068, adopted January 10, 2013, appointed PIMCO as investment manager of the Absolute Return Component, and WHEREAS, Resolution No. 3138, adopted February 14, 2014, specified the manner in which the assets of the Pension Fund of The Metropolitan St. Louis Sewer District are to be invested, and WHEREAS, the District seeks to terminate PIMCO All Asset Fund as investment manager of the Absolute Return Component; reduce the Absolute Return Position to 0% due to poor performance and organizational issues and instability; appoint Lighthouse Global Long/Short, Ltd. as an investment manager; reallocate the funds in the Absolute Return asset class to the Hedge Fund asset class; and WHEREAS, the Board of Trustees of the Metropolitan St. Louis Sewer District presently receives services from Pavilion Advisory Group, Inc., per Ordinance No.13719, adopted September 12, 2013 to act as the employee pension fund investment consultant and provide investment advisory services, and WHEREAS, Pavilion Advisory Group, Inc. 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 that the following actions be taken on behalf of the Trustee of the Pension Plan with respect to the assets of the Pension Fund of the Metropolitan St. Louis Sewer District: (A) The Secretary-Treasurer of the Metropolitan St. Louis Sewer District is authorized to terminate the District's relationship with PIMCO All Asset Fund as investment manager of the Absolute Return Component, reducing the Absolute Return position to 0%; and (B) Appointment of Lighthouse Global Long/Short, Ltd. as investment manager for a portion of the Hedge Fund Component as specified in Resolution No. 3138 and authorizing the Secretary-Treasurer to enter into an agreement with Lighthouse Global Long/Short, Ltd. BE IT FURTHER RESOLVED that the Executive Director is hereby authorized and directed to execute any necessary instruments to give effect to the foregoing. The foregoing Resolution was adopted on December 11, 2014.