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Finance committee approves revised investment policy statement and recommends it to full board
Summary
The finance subcommittee reviewed a reworded investment policy statement that simplifies asset‑allocation language; the committee recommended the revised policy to the full board, noting changes are formatting and flexibility‑focused rather than a shift in investment strategy.
The finance and facilities committee voted on Feb. 10 to recommend a revised Investment Policy Statement (IPS) to the full board after the investment subcommittee reviewed the changes on Feb. 3.
Sharon Scott, chief financial officer, said most revisions are formatting and language clarifications; the substantive change in appendix A replaces a highly prescriptive, detailed asset‑allocation template with broader allocation ranges to give the investment manager greater flexibility in responding to market conditions. Scott and committee members described the change as intended to reduce operational constraints on the adviser, not to change the system's overall risk posture.
Trustees discussed duplicated paragraphs and requested removal of repeated text in the draft. Committee members said the revised exhibit reduces overly granular targets (for example, exact caps and floors for small‑cap or mid‑cap allocations) that had hamstrung the adviser in prior market conditions. The committee confirmed that Morgan Stanley remains the system's investment adviser and that the subcommittee had met with the adviser recently.
After discussion, the committee voted to recommend the revised IPS to the full board for approval. The committee recorded the vote as in the meeting minutes and will forward the revised policy document for board action at the next regular meeting.
