Chelsea Investment Regulations

PERAC Approval Date

Regulation Number

Supplemental Investment Regulation

March 31, 2004

16.08

In accordance with PERAC Investment Guideline 99-2, the Chelsea Retirement Board is authorized to modify its large cap equity mandate with RhumbLine Advisers.  As part of a rebalancing of its equity portfolio intended to reduce any possible style bias, RhumbLine’s mandate will change from large cap value (Russell 1000 Value Index) to large cap core (S&P 500 Index).  The Board determined through interviews that RhumbLine’s product offers the lowest management fees.  Transferring the assets in this manner would also result in savings in transaction costs.