Sarasota County Comprehensive Annual Financial Report 2019

Sarasota County, Florida Notes to Financial Statements September 30, 2019 Other Post Employment Trust Fund Deposit and Investments The County participates in the Florida Municipal Pension Trust Fund which invests assets in the Florida Municipal Investment Trust (FMIvT). The FMIvT is a Local Government Investment Pool (LGIP) administered by the Florida League of Cities for the Other Post Employment Benefit Plan. The FMIvT is an interlocal government entity and authorized investment under Section 163.01, Florida Statutes used to invest surplus and pension funds. The FMIvT is governed by a Board of Trustees consisting of the president and second vice president of the Florida League of Cities, two representatives who are appointed from the Florida Municipal Insurance Trust and up to three members who are elected officials of governmental entities actively participating in the FMIvT. Credit Risk Credit risk exists when there is a possibility the issuer, or other counterparty to an investment, may be unable to fulfill its obligations. GASB 40 requires disclosure of credit quality ratings for investments in debt securities as well as investments in external investment pools, money market funds, and other pooled investments of fixed- income securities. Credit Risk for FMIvT Funds in the portfolio is as follows: Concentration of Credit Risk The County’s investment policy establishes limitations on portfolio composition, both by investment type and dealer, in order to control concentration risk. The following maximum limits are guidelines established for diversification by market sector: Equities 50% Fixed Income 40% Real Estate 10% A variance of more than 10% from the approved allocation percentages of any asset class requires approval by the Master Trustees. The following table reflects the government trustee’s investment deposits, level of investment in each market sector, and investment by sector as a percentage of total investment: Asset Class Portfolio Allocation Amount in Trust as of September 30, 2019 Cash 0.20% $ 14,814 Broad Market High Quality Bonds 19.60% 1,451,791 Core Plus Fixed Income 19.70% 1,459,198 Diversified Large Cap 29.90% 2,214,722 Diversified Small to Mid-Cap 9.10% 674,046 Int'l Equity 12.70% 940,701 Core Real Estate 8.80% 651,824 100.00% $ 7,407,096 Asset Class Fitch Rating FMIvT Broad Market High Quality Bond Fund AAf/S4 FMIvT Core Plus Fixed Income Fund Not Rated Credit Risk for FMIvT Funds 98