Clinton Investment Regulations

PERAC Approval Date

Regulation Number

Supplemental Investment Regulation

February 13, 2008 16.08

In accordance with Investment Guideline 99-2, the Clinton Retirement Board is authorized to make the following modifications to its investment portfolio managed by State Street Global Advisors.

In order to rebalance its domestic equity portfolio back toward growth from its recent emphasis on value, the Board will be reducing its position in SSgA’s Large Cap Value Fund and will begin investing  in SSgA’s Large Cap Growth Opportunities Fund.  This fund is an offshoot of SSgA’s Core Opportunities Fund, in which the Board had earlier invested.

In order to maintain exposure to the fixed income market in a lower-cost, less risky manner, the Board will begin investing in SSgA’s Passive Bond Market Fund.  This will replace the Board’s recently
liquidated position in SSgA’s Daily Bond Fund, an actively managed fund with the same benchmark.

February 21, 2006

16.08

In accordance with Investment Guideline 99-2, the Clinton Retirement Board is authorized to make a minor modification to its large cap equity mandate with State Street Global Advisors.  It will transfer its assets currently invested in SSGA’s 500 Index Fund to SSGA’s Index Plus Fund.  This fund has the same investment universe and benchmark as the 500 Index Fund but seeks to outperform the Index by 50-100 basis points by making risk-controlled bets relative to the Index, such as by making selective over-weighting or under-weighting of certain stocks or by investing in certain large cap stocks that may not be in the S&P 500 Index.

December 6, 2005

16.08

In accordance with Investment Guideline 99-2, the Clinton Retirement Board is authorized to make a modest modification to its international equity management mandate with State Street Global Advisors.  In order to obtain greater diversification within its international equity holdings, the Board will cease to invest solely in the SSGA International Alpha Common Trust fund.  It will, instead, invest in SSGA’s All International Allocation Strategy, which invests opportunistically in a number of SSGA international equity funds.  Well over half the assets will typically be invested the SSGA International Alpha CTF, and about 87% will continue to be invested in developed markets.  Between 10-15% will typically be invested in international small cap and emerging markets.  Funds to be used include the International Growth Opportunities CTF, the Daily Active Emerging Markets CTF, the Canadian Alpha CTF, the Rexiter Active Emerging Markets CTF, and the Active International Small Cap CTF.

May 27, 2005

16.08

In accordance with PERAC Investment Guideline 99-2, the Clinton Retirement Board is authorized to modify its small cap equity mandate with State Street Global Advisors by transferring its assets from the SSGA Small Cap Growth Opportunities Fund to the SSGA Small Cap Index Plus Fund.  The new fund is less dependent on a particular portfolio manager and is also less style-specific.  Over time, the enhanced index core approach should give the Board less volatility in its returns from small cap equity.

April 10, 2003

16.08

In accordance with PERAC Investment Guideline 99-2, the Clinton Retirement Board is authorized to invest in the SSGA International Alpha Fund.  By supplementing its current investment in the SSGA International Growth Opportunities Fund, which has a growth tilt, with the International Alpha Fund, which has a value tilt, the Board will more effectively achieve its mandate for large cap international core equity.  Both funds have an MSCI-EAFE benchmark.  The Board has had a satisfactory experience with SSGA in international equity and benefits from the low management fees of SSGA’s commingled funds.

August 31, 2001

16.08

In accordance with PERAC Investment Guideline 99-2, the Clinton Retirement System is modifying its international growth equity mandate with State Street Global Advisors to allow for securities lending.  There is no change in the fund’s investment strategy, investment universe, or benchmark.  The Board understands and is comfortable with the practice of securities lending and is satisfied with State Street Bank’s capabilities in this area.

August 30, 2000

 

 

16.08

In accordance with PERAC Investment Guideline 99-2, the Clinton Retirement Board may make a modification to its investment agreements with State Street Global Advisors.  In transitioning from the EAFE Securities Lending Fund to the International Growth Opportunities Fund, the Board is investing in the same universe of securities, with the same portfolio benchmark, but in an active rather than passive style consistent with its overall asset allocation program.  The Board has an existing and successful relationship with SSgA, it is satisfied that SSgA has sufficient ability as an active international equity manager, and certain internal guidelines for the actively-managed fund limit the extent of the portfolio’s deviation for the benchmark portfolio structure.