Page 8 - FebDefComp

already received a copy of this new IPS and will provide
its feedback within the next couple of weeks. NFP and
MassMutual will work together until they have a
recommended document for the Committee to consider.
Depending on the amount and nature of Committee
feedback, it is expected that the new IPS will be adopted
either at the February or the May Committee meeting.
Until then, the current IPS will control to assure that
Policy and Operation are aligned.
Vince provided a quick summary of the key elements
that have been changed. First, references to specific
asset class categories will be deleted as NFP takes a
broader view of potential portfolio funds and this will give
NFP and the County more flexibility. As an example, the
County currently employees the Morningstar nine box
asset category. NFP and the Committee may wish to
reduce that to four asset classes (Large Cap Value and
Growth and Small Cap Value and Growth) which may
eliminate all mid-cap and blend categories. This would
consolidate the portfolio and make it more efficient for
participants. Additionally, each of the four retained asset
classes carry some funds that include mid-cap and blend
features.
Vince also suggested that both the loan references and
Sarbanes Oxley topics be eliminated as they do not
strictly involve Investment Policy considerations. In the
case of Sarbanes Oxley, the Committee discussed its
responsibilities in notifying participants of any
transactional limitations. MassMutual indicated that there
are no blackout periods for removal and replacement of
under-performing funds so the Committee agreed that it
would continue the practice of providing a minimal 30-
day notice to participants of changes but would not
create a formal policy to do so.
Currently, the SST IPS has a multi-page table of
Investment Option Characteristics which would be
replaced by a narrative discussion of these options.
NFP will bring a copy back in February for the
Committee’s consideration. Jay asked that a Table of
Contents be added.