Investment of Funds

(a)The reserves of the Fund in excess of requirements for current operations shall be invested and reinvested by or under authority of the Board of Trustees. At its discretion, the Board may designate its Chairman or an investment committee consisting of two

(2)or more members of the Board to supervise this function; in either case, references to the Board in §§ 8143 through 8159, inclusive, shall be deemed to refer to the individual or committee exercising said function.

(b)The Board shall have full power to manage the investments as in its considered judgment seem most appropriate to the requirements and objectives of the Fund, including but not limited to the power

(1)to hold, purchase, sell, convey, assign, transfer, dispose of, lease, subdivide or partition any assets held or proceeds thereof;

(2)to execute or cause to be executed relevant documents;

(3)to enter into protective agreements, execute proxies, grant consents; and

(4)to do all other things necessary or appropriate to its position as an owner or creditor; provided, however, that neither the Board nor its agents may invest in any form, directly or indirectly in a hotel or motel operation Guam.

(c)All proceeds and income from investments, of whatever nature, shall be credited to the accounts of the Fund. Transactions in marketable securities shall be carried out at prevailing market prices.

(d)The Board may commingle securities and moneys subject to the crediting of receipts and earnings and charging of payments to the appropriate accounts established by this Chapter.

(e)No member of the Board and no employee of the Board shall have any direct or indirect interest in the income, gains or profits on any investment made by the Board, nor shall any such person receive any pay or emolument for services in connection with any investment made by the Board. Participation in the Fund under the terms of this Chapter shall not be construed to include interest, pay or emolument within the meaning of this Subsection. CH. 8 RETIREMENT OF PUBLIC EMPLOYEES

(f)No member of the Board, employee or agent shall become an endorser or surety or in any manner an obliger of investments made by the Fund, nor shall any member, employee or agent be held liable for actions taken in good faith and in performance of his duties.

(g)Investments may be held in bearer form or may be registered either in the name of the Fund or the nominee of the custodian engaged under § 8144.

(h)Due bills may be accepted from brokers against payment for securities purchased, pending delivery within a reasonable period of time of certificates representing such investments.

(i)The Board may, for the purpose of protecting the fund, and at its discretion, purchase insurance on the lives of the members of the fund; provided, that costs incurred in providing said insurance shall be displayed separately apart from administrative expenses if the fund is required to budget for such item along with other operating expenditures.

(j)Before the Board may approve by resolution the acquisition of real property consisting of physical assets under § 8159 of Title 4 GCA, the following steps must be taken:

(1)the proposed acquisition must be reviewed and recommendations must be submitted to the Board by an investment agent as defined under § 8145 of this Chapter;

(2)the completion of an in-house evaluation of the proposed acquisition must be completed;

(3)a review of the proposed acquisition as to legal sufficiency must be made by the Attorney General; and

(4)a review and recommendation must be submitted by three

(3)members of the Board of Trustees. At no time shall an acquisition considered under this Subsection

(j)be made that would provide an immediate investment return which is less than the average rate of investment return that the Fund is receiving overall on its alternative investment portfolio.

(k)If deemed material, the Board may, at its discretion, incorporate long-term sustainability factors in evaluating investment products offered by investment agents for consideration by the Fund. Materiality assessments by the Board shall be based on whether such considerations may impact the investment product’s long-term sustainable earnings power, on a risk-adjusted basis.