13. American Depositary Receipts, 144(a) securities (with and without registration rights), and Yankee (excluding sovereign bonds). 14. Exchange Traded Funds (ETF’s) traded on domestic exchanges, so long as consistent with the investment mandate, and guidelines. 15. Mortgage TBAs (“To Be Announced”) securities. These securities require an equivalent amount of cash equivalents set aside for future settlement of the forward agreement. 16. Derivatives: In general, the following uses of derivatives are approved for portfolio management purposes, although specific written permission must be granted to each manager on a case-by-case basis in formal written account guidelines. Substitute for physical Duration management Risk control Foreign currency hedging Before a derivative security or derivative strategy is used by an investment manager, one or more of the following benefits must be demonstrated to the Board: Increased liquidity. Stabilized and enhance portfolio returns. Lower transaction costs, including market impact costs. Reduction in the time required to change the mix of the portfolio. Before any such derivative strategy is used by an Investment Manager, written permission for such use must be obtained from the Executive Director of the Prepaid Board. Investment managers must keep in mind at all times the Board’s preference for safety and liquidity. PROHIBITED INVESTMENT VEHICLES AND INVESTMENT RESTRICTIONS Short selling of securities is prohibited. Maximum investment in the securities of any issuer, except U.S. Treasury, Agency, Agency Mortgage-Backed Securities, or
At a minimum, investment manager reviews will include a quarterly quantitative performance review conducted by the Program’s consultant. Specific evaluation criteria are stated in the investment guidelines that have been individually prepared for each investment option pursuant to its specific role in the Program. As necessary, the evaluation may also include an annual site visit to review each portfolio manager's operations. This portion of the evaluation may be conducted by a member of the Board, the Investment Committee, or Board Staff, as may be designated either by the Board or the Investment Committee. REBALANCING In order to maintain the level of risk the Board has established for each respective option, the asset class allocation within Option 9 and Option 10 will be monitored monthly and rebalanced to the specified target when the allowable ranges are exceeded. The portfolio should be brought back into compliance within five business days. The following ranges will apply: Option 9 Targeted Weight Allowable Range Growth Portfolio 20.00% 17.00% - 23.00% Value Portfolio 20.00% 17.00% - 23.00% Index Portfolio 20.00% 17.00% - 23.00% Mid Cap Portfolio Small Cap Portfolio International Equity Portfolio 10.00% 10.00% 20.00% 8.00% - 12.00% 8.00% - 12.00% 17.00% - 23.00% Option 10 Targeted Weight Allowable Range Equity Portfolio (Option 9) 50% 48 – 52% Fixed Income Portfolio (Option 7) 50% 48 – 52% In addition, portfolio balances within Option 11 will require rebalancing both with respect to the equity / fixed income mix within each age bracket and with respect to the targeted mix as a beneficiary moves from one age bracket to the next. The following ranges will apply to each of the age brackets within Option 11: Age Bracket Years to Enrollment Targeted Equity Allocation Allowable Equity Range Targeted Fixed Income Allocation Allowable Fixed Income Range
ii) These advisory and consulting services shall not impair the Contractor’s independence and shall be provided on an as-needed basis, at the hourly rates as follows: Position Type Hourly Rate TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD Compensation paid to the Contractor for such special consultative and advisory services will not exceed a maximum of _____________Dollars ($______________) per year. 3) CONSIDERATION. a) The agrees to pay the Contractor the fees specified for the specific services in Paragraph 2(a) as follows: State Fiscal Year Audited Florida Prepaid College Trust Fund Audit Stanley G. Tate Florida Prepaid College Foundation Florida ABLE, Inc. 2016/17 $____________ $____________ $____________ 2017/18 $____________ $____________ $____________ 2018/19 $____________ $____________ $____________ 2019/20 $____________ $____________ $____________ 2020/21 $____________ $____________ $____________ 4) TERM. a) The term of this Agreement shall be for an initial period of five (5) years, commencing on (INSERT EXECUTION DATE), 2017, and continuing through June 30, 2022. b) The reserves the right, in its sole discretion, to renew this Agreement for an additional five (5) year period under the terms and conditions set forth in this Agreement or under such terms and
Administrative Personnel $________________ IT Specialist $________________ Other (please identify)* $________________ *Include all additional position types in the “Other” category and provide the corresponding hourly rate. APPENDIX F – SERVICE AFFIRMATION STATEMENT State of Florida Board of Administration Florida Prepaid College Board 1801 Hermitage Blvd., 210 Tallahassee, Florida 32308 SERVICE REQUIREMENTS AFFIRMATION STATEMENT Solicitation: ITN 16-02 Title: Audit Services for the Florida Prepaid College Board, the Stanley G. Tate Florida Prepaid College Foundation, and Florida ABLE, Inc.