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“Investments shall be made with judgment and care, under prevailing
circumstances, that a person of prudence, discretion and intelligence would
exercise in the management of the person’s own affairs, not for speculation, but
for investment, considering the probable safety of capital and the probable income
to be derived.”

In determining whether a Trustee has exercised prudence with respect to an investment
decision, the determination shall be made taking into consideration: (1) the investment of
all funds, or funds under the Trustee’s control, over which the Trustee had responsibility
rather than a consideration as to the prudence of a single investment; and (2) whether the
investment decision was consistent with this written investment Policy.

VI. DELEGATION OF AUTHORITY AND RESPONSIBILTY

City Council
By law, the City Council retains ultimate fiduciary responsibility for the Permanent Fund
regardless of management assignment. The Council shall receive quarterly reports and
annually review and adopt this Policy. The Investment Committee designated by the City
Council is responsible for reviewing and authorizing all broker/dealers.

Chief Financial Officer
The Chief Financial Officer/Director of Finance (the “CFO”) is responsible for monitoring
the portfolio and reports submitted by the Trustee.

Trustee
The Trustee (the “Trustee”) will be responsible for monitoring and controlling the
portfolio in accordance with the terms of the Trust Agreement for the Fort Worth
Permanent Fund, as amended. The Trustee, with approval of the City, may engage the
services of a Securities and Exchange Commission (SEC) registered Investment Adviser
(registered under the Investment Advisers Act of 1940) or a National Bank exempt from
registration to provide the investment management of the Permanent Fund in a manner
consistent with the Policy. The Trustee and the selected Investment Adviser or National
Bank may be affiliated.

The Trustee shall provide timely monthly and quarterly reports to the CFO and
Investment Committee in accordance with the Act and establish internal procedures and
controls for the investment process and financial counter‐parties.

In managing the Permanent Fund, the Trustee’s use and acceptance of soft dollars shall
be limited by the terms of this paragraph. For purposes of this paragraph “soft dollar”
shall refer to non‐monetary credit offered by an executing broker/dealer in connection

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