Reston Association board members reviewed the results of a risk-tolerance survey performed by RAFA (the association's investment advisor) and the fiscal committee on Oct. 23. RAFA administered separate risk-tolerance surveys for the Bridal Reserve Fund (Bridal RF) and the CAT (stream/wetland) fund; following analysis the advisor recommended no change to the existing allocation mix for either fund.

What the survey found and what the board decided
- Current mixes: Staff reported that the Bridal RF is currently near a 60/40 equity/fixed-income split and the CAT fund is near a 40/60 split. RAFA recommended keeping those allocations.
- Board and fiscal committee: Staff and the fiscal committee agreed with RAFA's recommendation and the board accepted the RAFA report during the meeting.
- WSSI agreement appendix: The WSSI agreement (a multi-party agreement involving RA, WSSI, DEQ and the Army Corps) includes an appendix that prescribes an 80/20 allocation for the CAT fund. The board previously directed staff to pursue renegotiation of that appendix. Staff said they will begin outreach to WSSI and the regulatory parties to seek an agreement consistent with the association's adopted risk posture.

Why it matters: The allocations and investment policy determine how the association balances capital preservation and long-term growth for funds that finance multi-year capital needs such as pools, playgrounds and dredging. Several directors reiterated that capital reserves are member funds and that a conservative posture is appropriate.

Votes
The board voted to accept the RAFA report and to incorporate the fiscal committee's motions into the record. Members of the fiscal committee asked that their minutes be added to the meeting materials; the chair had no objection and the full board accepted the RAFA report.

Staff follow-up
Staff will attempt to renegotiate the WSSI appendix regarding the CAT fund allocation, starting with WSSI and seeking contacts at the Virginia Department of Environmental Quality given the agency's delegated wetland authority. Staff will report progress back to the board.

Ending
Directors agreed to continue quarterly or periodic reviews of investments and to rely on RAFA for recommendations about portfolio composition.