§ 2-233. Performance measurement.

In order to assist in the evaluation of the portfolio's performance, the town will use performance benchmarks for short-term and long-term portfolios. The use of benchmarks will allow the town to measure its rate of return against other investors in the same markets.

(1)

The state board of administration's local government surplus funds trust fund (SBA pool) will be used as a benchmark as compared to the portfolios' net book value rate of return for current operating funds.

(2)

Investment performance of funds designated as core funds and other nonoperating funds that have a longer-term investment horizon will be compared to an index comprised of United States Treasury or government securities. The appropriate index will have a duration and asset mix that approximates the portfolios and will be utilized as a benchmark to be compared to the portfolio's total rate of return.

(3)

Investment advisors will report investment performance on both book value and total rate of return basis and compare results to the above-stated benchmarks.

(Code 1999, § 2-232; Ord. No. 2001-02, § 1, 2-27-2001)