Investment Advisor Defined Benefit Plan Assets Services

The vendor is required to provide in effectively supervising, monitoring, and evaluating the investment of retiree health care defined benefit (RHC-DB) assets held in trust.
• State in a written document retiree health care trust funds oversight committee (RHCOC) expectations, objectives, and guidelines for the investment of all RHC-DB assets. 
• Set forth an investment structure for management of RHC-DB assets. 
• Encourage effective communications between RHCOC and stakeholders such as investment managers, custodians, appointed and elected city leadership, and RHC-DB beneficiaries and labor representatives. 
• Establish formal criteria to select, monitor, evaluate, and compare the performance results achieved by the various investment service providers on a regular basis. 
• Establish procedures for selecting, monitoring, evaluating, and (if appropriate) replacing investment service providers. 
• Establish the relevant investment horizon for which fund assets will be managed. 
• Manage RHC-DB assets according to prudent standards and applicable laws, as established for such assets.
- Liquidity
• Investments in the portfolio shall retain sufficient flexibility and liquidity of plan assets to enable timely reimbursement of anticipated ongoing health care benefits per RHCDB plan actuarial projections.
- Risk mitigation
• Investment returns are variable depending on a variety of factors and risks to the portfolio. 
• Risk is the measurable deviation of portfolio returns below the actuarially assumed rate of return net of all fees and costs associated with plan administration. 
• The city recognizes that no investment is truly risk-free, and that occasional losses are inevitable from time to time despite best efforts and due diligence.
o Systematic risks stem from hazards such as inflation, recession, war, revolution, or natural disaster which are inherent to participation in entire investment markets or market segments. such risks persist across entire asset classes, markets, industries, issuers, and counterparties. 
o Systematic risks cannot be avoided entirely via diversification, though they may be hedged. 
o Efforts to hedge unsystematic risk(s) may be employed, though particular attention shall pay to counterparty risk, collateralization, and the expected costs of employing such strategies.
o Unsystematic risks are those inherent to particular industries, asset classes, issuers, and counterparties. o such risks can be mitigated by diversifying portfolio investments across uncorrelated asset classes, markets, industries, and counterparties. 
o In this manner, investors will be less affected by adverse events affecting any one asset class, market, industry, and counterparty. 
o Efforts shall be made to diversify the portfolio to mitigate the likelihood and severity of losses from unsystematic risks.
- Return on investment
• Investments shall be selected with the reasonable expectation of obtaining a rate of return at least equal to that actuarially assumed throughout budgetary and economic cycles. 
• Modern investment theory holds that portfolio exposure to varying degrees and types of investment risk is generally, but not always, rewarded with compensating proportional returns.
- Contract Period/Term: 1 year
- Questions/Inquires Deadline: July 22, 2025