CPFO Examination- Pensions schemes

CPFO Examination- Pensions schemes Investment Policy Functions - Correct Answer-1. Statement of goals 2. Articulating the investment philosophy and risk tolerance 3. Demonstrates due diligence b/c the system follows a prudent set of procedures 4. Established internal controls 5. Provides guidance to staff and third parties 6. Risk management tool Typical Provisions of an Investment Policy - Correct Answer-1. Statement of goal(s), purpose, or mission 2. Identification of decision maker(s) 3. Statement of performance measurement 4. Statement on managing risks of individual securities (the asset allocation strategy) 5. Statement on managing risk of overall portfolio 6. Money manager guidelines 7. Guidelines for other investment professionals 8. Legal standards 9. Cost management 10. Transacting or brokering trades GFOA Recommended Practice on Pension Investment Policies - Correct Answer-1. Statement of purpose 2. Roles and responsibilities 3. Standard of care 4. Asset allocation 5. Rebalancing 6. Investment guidelines 7. Reporting and monitoring 8. Corporate governance 4 Reasons for advanced funding - Correct Answer-1. intergenerational equity, 2. sustainability, 3. financial flexibility, and 4. cost reduction (investment earnings)