Page 474 - FortWorthFY23AdoptedBudget

The Permanent Fund, some portion of which may be maintained as permanent funds as
determined by the City, is to be managed and invested in general accordance with the
Act and follow four major investment objectives: safety, liquidity, diversification and
yield.

Safety of principal is the foremost objective of the City’s overall investment program, and
safety of principal shall be an objective with respect to the investment of the Permanent
Fund as well. Investment transactions and strategies shall address and consider the
preservation of capital and minimization of capital loss as well as growth. Liquidity is
not critical in the Permanent Fund because these funds are not to be used for ongoing
operational expenses, expenditures, or liabilities. Diversification in portfolio structure is
intended to further protect the Permanent Fund from over‐ concentration. Growth and
income will be the primary objectives for the Permanent Fund after all other objectives
have been achieved.

IV. STRATEGY

The Permanent Fund is to be invested in designated sub‐accounts as per the Gas-Related
Revenue & Expense/Expenditure Policy. Operating within appropriately established
administrative and procedural parameters, the Trustee shall pursue growth and returns
within Policy parameters. Withdrawals from the Permanent Fund may be made annually
pursuant to the terms of the Trust and will require coordination and planning to
minimize having to recognize unrealized losses. No cash buffer is required on the
portfolio.

The Permanent Fund shall be managed proactively in high credit quality investments.
Securities lending may be used to add incremental income. Strategies shall utilize
competitive bidding where appropriate and other controls as established by this Policy
for all transactions pursuant to the terms of the Trust.

Securities may be sold or swapped if an opportunity exists to benefit from the trade. All
transactions, including swaps must be documented. The Trustee will continuously
monitor the contents of the portfolio, the available markets, and the relative value of
competing instruments to adjust the portfolio in response to market conditions.

V. STANDARD OF CARE

The standard of care to be used shall be the “prudent person” standard as established by
the Act and shall be applied in the context of managing the overall Permanent Fund. The
"prudent person" standard states that:

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