Page 448 - FortWorthFY22AdoptedBudget

Competitive Transactions
All investments will be made in an effort to achieve a fair and reasonable return under
market circumstances and in light of other investment alternatives available and shall
utilize market competition where appropriate.

In general, in buying or selling equity or fixed income securities, Trustee shall utilize
electronic communications networks, exchanges, and market makers using the National
Best Bid/Offer consolidated quote system pricing to solicit terms from multiple
industry-recognized third party registered broker/dealers that are included on the
then- current list of approved broker/dealers. The Trustee shall evaluate all transactions
and brokers for best execution, taking into account a variety of factors including price,
execution and commission costs, size of the order and other unique trading
characteristics, value of research provided, financial responsibility, and the
responsiveness of the brokers.

All bids and offers for fixed income shall be completed using at least three
broker/dealers whenever possible to make certain of fair and competitive pricing in the
market. In the event three bids cannot be obtained, Trustee shall use market variables to
determine best price, including but not limited to: competitive pricing, market
condition, sector, liquidity, and credit conditions. The Trustee shall not use margin
accounts.

Delivery vs. Payment
All trades of marketable securities shall be executed (cleared and settled) on a delivery
vs. payment (DVP) basis to ensure that securities are deposited in the Permanent Fund
safekeeping institution prior to the release of funds.

Monitoring Credit Ratings
The Trustee shall monitor, on no less than a weekly basis, the credit rating on all
authorized investments in the portfolio based upon independent information from a
nationally recognized rating agency. If any security falls below the minimum rating
required by this Policy, the Trustee shall (i), within two business days of downgrade,
notify the CFO of the loss of rating within two business days of the occurrence and (ii),
within four business days of downgrade, notify the CFO of conditions affecting the
rating and available liquidation options, including associated loss of principal, before
any action is taken, provided however, that in extreme situations where the Trustee
determines in the exercise of its reasonable discretion that immediate liquidation is
prudent, Trustee shall be authorized to liquidate immediately but shall be required to
provide the City with notice of such liquidation by the close of the following business
day.

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