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City of Fort Worth

Department of Finance

Investment Policy and Strategy

OPEB Trust

I. OVERVIEW AND PURPOSE

This investment policy and strategy applies to all accumulated assets for the City of
Fort Worth Other Post-Employment Benefits Trust (“Trust”) created by the Fort Worth
City Council by Resolution No. 3779-08-2009, and its consultants, agents, investment
managers, advisory boards, Trustees, Trust Administrator and assigned staff.

All investment activities shall be conducted in full compliance with applicable City
ordinances as well as state and federal rules and regulations.

The purpose of this document is to provide the Trustee and its Sub Advisors with a set
of objectives, parameters and guidelines to assist in the administration of the Trust; to
guide investment managers in structuring portfolios consistent with desired performance
result and acceptable risk levels; to assure the assets are managed in a prudent fashion
and to serve as the framework for all investment activities related to the Trust.

II. INVESTMENT POLICY AND OBJECTIVES

The primary obligations of the City’s governing body in investing assets are to do so for
the exclusive benefit of the beneficiaries. Emphasis must be placed upon the consistent
protection of the Trust’s assets and growth performance, i.e., the achievement of adequate
investment growth must not be at the expense of the protection of the assets over the
investment horizon. Specific objectives of investment activities carried out by the Trustee
and its Sub Advisors include the following:

A. The expected annual rate of return for the portfolio will be equal to
the actuarial assumption, until amended by the City Council
(“Council”).

B. Individual investment managers will not be measured against the
aggregate fund objective stated in section II. A., but will be compared
to appropriate market indices and a blended Plan Target Benchmark
outlined in Section III, subsection 7 of the Policy.

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