Risk Aversion Understanding that risk is present in all types of securities and investment styles, the City of Wrangell recognizes that some risk is necessary to produce long-term investment results that are sufficient to meet the Plan s objectives. However, the investment managers are to make reasonable efforts to control risk, and will be evaluated regularly to ensure that the risk assumed is commensurate with the given investment style and objectives. Adherence to Investment Discipline Investment managers are expected to adhere to the investment management styles for which they were hired. Managers will be evaluated regularly for adherence to investment discipline. In order to meet its needs, the investment strategy of the City of Wrangell Permanent Fund is to emphasize total return, that is, the aggregate return from capital appreciation and dividend and interest income.
Risk control is an important element in the investment of Plan assets.
Short-term volatility will be tolerated in as much as it is consistent with the volatility of a comparable market index. 5.20.090 Specific Investment Goals. The investment goals above are the objectives of the aggregate Plan, and are not meant to be imposed on each investment account. Meet or exceed the market index, or blended market index, selected and agreed upon by the Investment Committee that most closely corresponds to the style of investment management. Display an overall level of risk in the portfolio which is consistent with the risk associated with the benchmark specified above.