Exhibit_F_-_457_Committee_Investment_Policy_Statement-_Final_05_28_19_(2).pdf

Investment Policy Statement For

Purpose of the Investment Policy Statement The purpose of the investment policy statement (“IPS”) is to provide The City of Tampa with a set of policies and procedures for making investment-related decisions regarding the City of Tampa ‘s 457 Deferred Compensation Plan (“Plan”). This document identifies the following policies and procedures:

• Plan objectives

• Investment objectives

• Duties and responsibilities

• Selecting investment options

• Monitoring investment options

• Review of the investment policy statement

Plan Objectives

The City of Tampa has established the Plan as a benefit for its employees. The Plan provides participants with a long-term savings vehicle that can be used to accumulate income for retirement. The Plan is maintained for the exclusive purpose of benefiting the participants and their beneficiaries.

Investment Objectives

The City of Tampa’s 457 Deferred Compensation Plan Committee (“Committee”) realizes that its employees have varying degrees of risk tolerance and time horizons as it pertains to their retirement investment objectives. The Committee has a duty to act with skill, diligence and care and as such has adopted the following investment objectives:

• Offer plan participants broad exposure to a variety of asset classes;

• Select investment options that have reasonable expenses given their investment objectives and features; and

• Choose investments that have historically provided reasonable rates of return given their level of risk.

Duties and Responsibilities The City of Tampa has delegated fiduciary responsibilities to the Committee. The Committee intends to perform its fiduciary duties in the following manner:

• Acting solely in the interest of plan participants and their beneficiaries and with the exclusive purpose of providing benefits to them;

• Carrying out their duties prudently;

• Following the plan documents;

• Diversifying plan investments; and

• Paying only reasonable plan expenses.

The Committee has hired an independent consultant and intends to rely on the expertise of the consultant.

The consultant has been hired to provide services such as:

• To assist in establishing the organizational design and committee structure to oversee the Plan, including creation of governance documents and investment policy statement.

• Investment monitoring reports that contain historical performance and expenses of plan investment options compared to peer groups and benchmarks.

• Assistance regarding the addition or removal of asset classes and individual investment options.

• Determine the need for, and if appropriate, the selection of Plan Advisor.

• Ongoing support of the Committee.

Selecting Investment Options The Committee, in conjunction with its consultant, utilizes the investment criteria described in Appendix A to select and monitor plan investment options. When selecting investment options, the Committee and its consultant intend to develop a diversified menu of investment options that consider the following broad category groups:

• Stable Value/Money Market – Options that primarily invest in fixed income securities. Compared to other fixed income options, these funds provide fairly consistent levels of return and risk.

• Fixed Income – Options that invest a majority of their assets in bonds. The risk/return profiles of these options differ based on features such as duration, yield and credit quality.

• Asset Allocation – Options that invest in fixed income and equity securities. Many of these options utilize investment objectives that incorporate risk tolerance (e.g. conservative, moderate or aggressive) or an asset allocation glidepath (e.g. target date funds).

• Equity – Options that invest in equity securities. The risk/return profiles of these options differ based on features such as company size, type, and domicile.

Monitoring Investment Options The Committee utilizes a consultant to provide a review of plan investment options on a regular basis (at least annually). These investment reviews will include data on the amount of plan assets in each investment option as well as historical performance and expenses of plan investment options relative to peers and benchmarks.

These reviews will also identify any investments that fail to meet the investment criteria in Appendix A.

Review of the Investment Policy Statement The Committee will review the investment policy statement at least annually. The Committee reserves the right to amend or update this document based on changes in plan design, financial market conditions or other reasons deemed appropriate.

Acknowledgement

X The Committee acknowledges and has accepted this IPS.

Date: May 28, 2019

Appendix A – Investment Monitoring Criteria

Actively-Managed Criteria

Returns Relative returns measure how well a fund has performed compared to investment options within the same Morningstar category. Relative returns are displayed as percentiles that range from 1 – 100. All else equal, lower percentile rankings are preferred to higher percentile rankings as lower percentile rankings imply outperformance. The thresholds for relative returns are:

1. Top 75% of the category over the last 3-year period.

2. Top 50% of the category over the last 5-year period.

Risk Standard deviation is a measure of volatility, which can be evaluated on an absolute or relative basis. The threshold for standard deviation is:

1. Top 90% of the category over the last 3-year period.

Risk-Adjusted Returns Alpha measures the difference between an investment option’s actual return and expected return given its riskiness (as indicated by beta). A positive alpha indicates that an investment option’s actual return is higher than its expected return. Conversely, a negative alpha indicates that actual returns are lower than expected returns. The threshold for alpha is:

2. Top 50% of the category over the last 3-year period.

Sharpe Ratio measures the excess return of an investment option (relative to a cash proxy) divided by standard deviation. A positive Sharpe Ratio implies that reward per unit of risk has been favorable. The threshold for Sharpe Ratio is:

3. Top 50% of the category over the last 3-year period.

Passively-Managed Index Criteria

R-Squared This statistic indicates how much of a fund's fluctuations were attributable to movements in the fund's benchmark index. R-squared ranges between 0 percent and 100 percent. An R-squared of 100 indicates that all movements of a fund were completely explained by movements in the benchmark index. The threshold for R-Squared is:

1. An R-Squared greater than 95% over the last 3-year period, measured against the Morningstar Analyst Assigned Benchmark.

2. An R-Squared greater than 95% over the last 5-year period, measured against the Morningstar Analyst Assigned Benchmark.

Tracking Error This metric is a measure of how closely a portfolio follows the index to which it is benchmarked. The most common measure is the root-mean-square of the difference between the portfolio and index returns. The threshold for tracking error is:

3. Top 50% of the category over the last 3-year period.

4. Top 50% of the category over the last 5-year period.

Watch List Process

Actively-managed investments:

Investments with at least 5 years of historical performance must fail 3 of 5 criteria to be placed on watch.

Investments with at least 3 years but less than 5 years of historical performance must fail 2 of 4 criteria to be placed on watch. Investments with less than 3 years of historical performance are not scored.

1. Return: Greater than 75% of the category over the last 3-year period.

2. Return: Greater than 50% of the category over the last 5-year period.

3. Standard Deviation: Greater than 90% of the category over the last 3-year period.

4. Alpha: Greater than 50% of the category over the last 3-year period.

5. Sharpe Ratio: Greater than 50% of the category over the last 3-year period.

Passively-managed investments:

Investments with at least 5 years of historical performance must fail 3 of 4 criteria to be placed on watch.

Investments with at least 3 years but less than 5 years of historical performance must fail 2 of 2 criteria to be placed on watch. Investments with less than 3 years of historical performance are not scored.

1. R-Squared: Less than 95% over the last 3-year period.

2. R-Squared: Less than 95% over the last 5-year period.

3. Tracking error: Greater than 50% of the category over the last 3-year period.

4. Tracking error: Greater than 50% of the category over the last 5-year period.

Satisfactory: The fund passes the investment monitoring criteria.

Watch: The fund fails the investment monitoring criteria.

The (“Committee”) reserves the right to add, eliminate, or replace investment options for reasons in addition to those mentioned in Appendix A.

This document is not intended to provide legal advice and should not be relied upon in that regard. Accordingly, you should consult with your own legal advisers regarding compliance with applicable law.

For Institutional Use Only. Not for Public Distribution.