Unconstrained Multi-Sector / Absolute Return Fixed Income
Q&A
I.Does Chicago PABF maintain a list of restricted securities with respect to the new ban on investing in securities of assault weapons manufacturers?
II.Does Chicago PABF have ISDAs, futures, options and collateral agreements in place with brokers? If so, which broker? If not, is CPABF willing to enter into these agreements or to authorize the adviser to do so on CPABF’ behalf?
I.Does Chicago PABF maintain a list of restricted securities with respect to the new ban on investing in securities of assault weapons manufacturers?
For your reference, the Assault Weapons Restriction is copied below in its entirety:
Subject to an investment manager's exercise of fiscal and fiduciary duty, investment manager should refrain from purchasing or holding securities of an assault weapons manufacturer if the investment manager determines that the same investment goals concerning risk, return and diversification can be achieved through the purchase or holding of another security. For purposes of this policy, "assault weapon" shall mean a weapon identified as an assault weapon the civilian possession of which is prohibited by the Municipal Code of Chicago or the laws of the State of Illinois and "assault weapons manufacturer" shall mean any entity that derives revenue from the sale of such prohibited assault weapons for civilian use.
These provisions governing restrictions on investment expire, by their terms, on January 1, 2015, unless extended by further Board action.
The Assault Weapons Restriction was approved by the Fund’s Board of Trustees on January 31, 2013 in the form set forth above. The Fund’s staff cannot provide interpretive guidance with respect to the Assault Weapons Restriction, and the Fund’s staff will not provide further comments or opinions on this matter other than to reiterate that Wellington Management Company must comply with the terms of the Assault Weapons Restriction.
II.Does Chicago PABF have ISDAs, futures, options and collateral agreements in place with brokers? If so, which broker?If not, is CPABF willing to enter into these agreements or to authorize the adviser to do so on CPABF’ behalf?
No. It is the responsibility of our external managers to have these agreements in place. CPABF has a CICI number (549300BB3PDA2PP0DG49) and we also need our managers to fill our EXTERNAL QUALIFIED INDEPENDENT ADVISOR CERTIFICATE AND AGREEMENT form if required. We also request our external mangers to fill our ANNUAL REVIEW QUESTIONNAIRE, which includes a section about derivatives operations.
Samuel Kunz - PABFPage 1 of 110/18/2018