# ATRS Reams Contract Documents and Aon Investment Guidelines (FOIA Response 2-28-26) This source page documents the five documentary files comprising the foundational contractual record for the Arkansas Teacher Retirement System Israel Bonds mandate authorized by Resolution 2025-22 on 6/2/2025 and operationalized by the December 2025 single capital call documented at [[atrs-reams-capital-call-execution]]. The files were produced in FOIA Response 2-28-26 alongside the 6/2 and 12/1 Board recordings already documented at [[atrs-bot-audio-6-2-25]], [[atrs-ic-audio-6-2-25]], and [[atrs-board-audio-12-1-25]]. The page covers (1) the original State of Arkansas Services Contract 4600057154 between ATRS and Scout Investments, Inc. DBA Reams Asset Management dated 9/25/2025; (2) Amendment 1 to the contract effective 11/20/2025; (3) the 9/25/2025 original Investment Guidelines document attached as Exhibit A of the Investment Manager Agreement; (4) Rod Graves's 9/25/2025 outbound email to Aon requesting consultant approval of those guidelines; and (5) PJ Kelly's same-day 9/25/2025 five-word email reply approving them. The documentary record establishes three substantive findings the wiki had previously inferred rather than documented at primary-source depth. First, the contractual scope is Israel-Bonds-specific from the original 9/25/2025 contract text onward; the contract is not a generic fixed-income manager engagement extended to Israel Bonds, but a single-purpose contract whose Section 2 Objectives clause names "Israel Bonds" as the entire purpose of the engagement. Second, the $10M per calendar year private placement target the wiki had previously characterized as Mark White's verbal Board preview language is codified in Amendment 1's revised Investment Guidelines effective 11/20/2025, six weeks before Reams's December 2025 single-quarter $50M capital call documented at [[atrs-reams-capital-call-execution]]. The ladder structure White verbally previewed on 5/22/2025 ("$10 million in the first year $10 million in the second year $10 million in the third year and so on" per [[atrs-ic-audio-6-2-25]]) is therefore contract-codified rather than abandoned: the $50M ATRS-to-Reams capital call is a single funding event, but the Reams-to-DCI Israel Jubilee Institutional bond purchases are contract-required to be laddered at $10M per calendar year. Third, the illiquidity acknowledgment by ATRS appears at Amendment 1 Section 3.00(a) verbatim, alongside ATRS's contractual acknowledgment that it directed Reams to purchase Jubilee Bonds as the primary investment. The Aon consultant approval of the Investment Guidelines was a five-word email reply on 9/25/2025 ("We are good with the proposed guidelines"). The contract's substantive investment parameters were therefore consultant-approved at the documentary depth of one sentence by email, structurally parallel to the empty Kelly + Comstock memo at [[atrs-bot-packets-7-3-25]] that sharpened the [[independent-credit-analysis-gap]] concept page. ## The original contract (9/25/2025) The Original Contract is Arkansas Procurement System Form SRV-1 dated 11/07/2024, executed 9/25/2025 between the Arkansas Teacher Retirement System ("Department No. 0375") and Scout Investments, Inc. DBA Reams Asset Management. The contract identifier is 4600057154; Reams's federal ID is 43-1925734; Reams's contractor address on the contract face is 1201 Walnut Street, 21st Floor, Kansas City, MO 64106 (the Scout Investments parent address), with the IMA notice address at the Reams Asset Management Division headquarters at 111 Monument Circle, Suite 402, Indianapolis, IN 46204. The IMA signature address shifts further to 780 Carillon Pkwy, St Petersburg, FL 33716 — the Raymond James Investment Management headquarters; Raymond James is the parent organization, Scout Investments is the intermediate division, and Reams Asset Management is the operational unit. The contract Service Type is Professional Consultant Services (PCS) and the Procurement Method is "Exempt by Law" under Arkansas Code Annotated § 24-2-618. The procurement-exemption invocation is the contract-level documentary anchor for the wiki's prior framing that the Reams selection bypassed normal competitive bidding. The original Section 2 Objectives, Scope, and Performance clause reads verbatim: > "In June 2025, in accordance with ACA 24-2-618 the Board of Trustees of the Arkansas Teacher Retirement System (ATRS Board) voted and approved to hire Scout Investments, Inc., through its Reams Asset Management Division as a fixed income manager to implement and manage an investment in Israel Bonds over time. The mandate to invest in and manage a portfolio of Israel Bonds includes full discretion to act on behalf of the ATRS Board and execute transactions in accordance with ATRS Board objectives using various investment vehicles and strategies. Assessment of performance will be made against a universe of similarly managed portfolios and will be reported to the ATRS Board quarterly. This contract is 'Exempt by Law' under ACA 24-2-618." > 0375_4600057154_OR.pdf p.1, Section 2 Two analytical points. The "over time" language anchors the substantive deployment cadence to the contract text rather than to White's 5/22/2025 verbal preview alone. The performance benchmark is "a universe of similarly managed portfolios" — a relative-peer benchmark, not an absolute benchmark. The performance reporting cadence is quarterly. The contract does not require Reams to produce credit analysis on individual Israel Bonds securities; it requires reporting of performance against the peer-portfolio universe. The contract Term Dates clause sets the Original Term as 11/01/2025 to 10/31/2026 (one-year base term) with a Total Possible Term expiring 06/30/2032 (seven years total) under the contract's renewal-extension provisions. The Initial Contract Amount is $30,000 (the one-year base term); the Total Projected Contract Amount over seven years is $210,000 (a number Amendment 1 subsequently corrects on the amendment cover sheet, see below). The Department's Payment Obligations at Section 5 establish the fee structure: > "Fees will be paid in arrears on a quarterly basis. The fee amount is calculated by multiplying the market value as reported by the ATRS custodial bank by 3 bps for the balance of the account." > 0375_4600057154_OR.pdf p.2, Section 5 The fee is three basis points per annum on the market value of the Investment Account. The fee is paid in arrears quarterly. The fee schedule is restated in Exhibit B of the IMA: "All assets / 3 bps per annum." The fee structure is consistent with Matt Waz's 5/28/2025 introductory pitch to PJ Kelly that pitched Reams at three basis points documented at [[atrs-foia-r1-staff-emails]]. The Contractor's Performance Obligations at Section 4 are restated: > "Scout Investments, Inc., through its Reams Asset Management Division as a fixed income investment manager hired to implement and manage an investment in Israel Bonds, will execute transactions on behalf of ATRS in accordance with ATRS Board objectives. Assessment of performance will be made against a universe of similarly managed portfolios in a plan sponsor database. An evaluation will be conducted and reported to the ATRS Board quarterly." > 0375_4600057154_OR.pdf p.2, Section 4 The contract was signed 9/25/2025 by Damian Sousa as Reams Chief Compliance Officer and by Mark White as ATRS Executive Director. The signature page captures both signatures with the matching 9/25/2025 date stamp; Sousa's digital signature timestamp is 12:44:45 -04:00 (Eastern, 11:44:45 CDT). ### Attachment 1: Certification of Contractor (Israel Boycott Restriction certified) Attachment 1 documents the Reams certifications. Section E.1 of the certifications page (the Israel Boycott Restriction at ACA § 25-1-503) is certified by Reams by virtue of contract execution. The certification reads: > "A public entity shall not contract with a person or company (the 'Contractor') unless the Contractor certifies in writing that the Contractor is not currently engaged in a boycott of Israel. If at any time after signing this certification the Contractor decides to boycott Israel, the Contractor must notify the contracting public entity in writing. See Arkansas Code Annotated § 25-1-503." > 0375_4600057154_OR.pdf p.10, Attachment 1 Section E The Certification of Contractor section also documents Reams's six other state contracts at certification Section B: "Reams / Scout has contracts with six states (MA, FL, AZ, IA, IN, TX), in addition to this one with the State of Arkansas." Arkansas is the seventh state in Reams's documented state-pension-system client portfolio at the time of contract execution. Reams's named personnel supplying services to ATRS are Mark Egan (CIO, Managing Director), Todd Thompson (Managing Director), and Dimitri Silva (Managing Director), all at the Indianapolis address. ### Attachment 5: Investment Manager Agreement Attachment 5 is the Investment Manager Agreement (IMA) between ATRS and Scout Investments, dated 11/01/2025 (the Original Term commencement date). The IMA spans twelve articles plus two exhibits (Exhibit A "Investment Guidelines" placeholder page; Exhibit B "Fee Schedule"). The substantive IMA provisions: Section 3.00(f) certifies ATRS as a Qualified Institutional Buyer under Rule 144A of the Securities Act of 1933. The QIB certification is the regulatory-eligibility anchor for ATRS's permission to purchase private-placement Israel Jubilee Institutional bonds. Section 5.00 General establishes Reams's discretionary authority: > "the Investment Manager shall have and exercise sole discretionary authority to invest and reinvest the Assets in the Investment Account for the term of this Agreement, subject to any written investment policies, guidelines and/or restrictions provided by Client to the Investment Manager in writing ('Investment Guidelines'). A copy of Client's current Investment Guidelines is attached hereto as Exhibit A. Such discretionary authority shall allow Investment Manager to make investment decisions with respect to the Investment Account when it deems appropriate and without prior consultation with Client." > 0375_4600057154_OR.pdf p.15, Section 5.00 Section 5.04 establishes the Prudent Man Standard (the older legal formulation, distinct from the Prudent Investor Rule adopted in BP4): > "The Investment Manager shall perform its duties hereunder with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims." > 0375_4600057154_OR.pdf p.15, Section 5.04 Section 5.06 establishes the reporting obligations: > "The Investment Manager shall furnish the Client with monthly valuations of the Investment Account, valued as of the last business day of the month, together with a summary of purchases and sales, quarterly performance tabulations, and such other reports as shall be agreed upon from time to time." > 0375_4600057154_OR.pdf p.16, Section 5.06 The reporting obligations are monthly valuations plus purchases/sales summary plus quarterly performance tabulations. The contract does not require Reams to produce or report credit analysis on the underlying Israel Bonds positions. The structural significance for the [[independent-credit-analysis-gap]] concept page is documented in the cross-reference section of that page. Section 8.00 Resignation and Removal of Investment Manager in the original IMA states (the same section is substantively revised in Amendment 1): > "The Client may remove the Investment Manager at any time by giving the Investment Manager written notice of such removal. The Investment Manager shall have the right to resign at any time by giving written notice to the Client at least 60 days prior to the effective date of such resignation. Termination of this Agreement shall not affect liabilities or obligations of the parties hereunder arising from transactions initiated prior to such termination." > 0375_4600057154_OR.pdf p.17, Section 8.00 Section 9.00 indemnifies Reams against most claims arising from the engagement, with the standard exceptions for Reams's own negligence, misconduct, breach of contract, or violation of applicable law. Section 12.00 sets Arkansas as the choice of law; Section 12.05 sets notice addresses at the Reams Indianapolis address and the ATRS 1400 W. Third Street Little Rock address. ### Exhibit A placeholder The original IMA Exhibit A is a single page containing only: > "EXHIBIT A > > INVESTMENT GUIDELINES > (attached)" > 0375_4600057154_OR.pdf p.21 The actual Investment Guidelines document was transmitted separately as the 9/25/2025 PDF documented in the next section. The IMA's Exhibit A is a placeholder for the substantive guidelines document. ## The original Investment Guidelines (9/25/2025) The Investment Guidelines.pdf is a one-page document dated September 25, 2025 and titled "Investment guidelines for the Arkansas State Teacher Retirement Israeli Jubilee bond account managed by Reams Asset Management." The document contains four sections, each with a verbatim provision. The Objective: > "Create and maintain a laddered portfolio of Israel Jubilee Institutional bonds. Due to the lack of a secondary market for these securities and limited transferability, emphasis will be placed on shorter maturities." > Investment Guidelines.pdf, Objective The objective is to maintain a laddered portfolio. The acknowledgment of "lack of a secondary market" and "limited transferability" appears here as a structural design constraint rather than as an investor risk disclosure; the Section 3.00(a) illiquidity acknowledgment Amendment 1 introduces is a separate document. The "shorter maturities" emphasis is the operational consequence of the structural illiquidity. The Permissible securities: > "The only permissible securities in the portfolio will be Israel Jubilee Institutional bonds (private placement), other fixed income instruments issued by the state of Israel, U.S. Treasurys and cash/cash equivalents (money market fund at custodian)." > Investment Guidelines.pdf, Permissible securities Four eligible-security categories: (a) Israel Jubilee Institutional bonds as private placement, (b) other Israel-issuer fixed income, (c) US Treasuries, (d) cash/cash equivalents in custodian money market fund. The guidelines specify no concentration limits, no credit-quality requirements, no minimum ratings, and no maximum per-transaction or per-issuer caps. The portfolio is structurally Israel-Bonds-concentrated by design. The Weighted Average Life: > "The investment manager will target a portfolio weighted average life between 3.0 and 6.0 years. Cash flows will be reinvested in Israel Jubilee Institutional bonds or other permissible securities on a temporary basis to maintain weighted average life within the target band." > Investment Guidelines.pdf, Weighted Average life WAL target band 3.0 to 6.0 years. The band is subsequently relaxed downward in Amendment 1. The Maximum Cash Holdings: > "The intention of the portfolio is to remain fully invested in Israel Jubilee Institutional bonds, but if the is any delay in prudently investing in Israel Jubilee Institutional bonds or a timing mismatch with cash flows, the manager may invest in other permissible securities. Except following the initial purchases or any significant cash flow in the portfolio, cash should not exceed 7% of the portfolio." > Investment Guidelines.pdf, Maximum Cash Holdings Cash holdings target 7% of portfolio with an explicit carve-out following initial purchases or significant cash flow events. The original guidelines do not codify a per-calendar-year cap on private placement bond purchases; the $10M/CY target appears only in the Amendment 1 revised guidelines. The original guidelines are Israel-Bonds-specific in scope (the entire permissible-security universe is structured around Israel Jubilee Institutional bonds as the primary holding) but contain no Israel-Bonds-specific concentration limit beyond the 7% cash cap (which inversely caps non-cash holdings at 93%, of which the Israel Jubilee Institutional bonds are the intended primary holding). The original guidelines are also unsigned; the document is a text-rendered PDF without execution marks. The substantive approval comes from the 9/25/2025 Aon email reply documented in the next section. ## The Aon consultant approval (9/25/2025 emails) Rod Graves sent the outbound query to PJ Kelly and Katie Comstock on Thursday, September 25, 2025 at 12:23:12 PM CDT. The full body of Graves's outbound email (preserved in the quoted text of Kelly's reply): > "Hi PJ and Katie, > > Do you agree with the attached guidelines? The guidelines will be attached to the IMA and I need to submit these by end of day. > > Thanks" > Rod Graves to PJ Kelly + Katie Comstock, guidelines.eml, 9/25/2025 12:23:12 PM CDT The end-of-day deadline framing places the consultant-approval window at approximately one business afternoon. The "submit these by end of day" framing positions Graves as needing the IMA submission completed before close of business on 9/25/2025. PJ Kelly's reply landed at 17:43:25 UTC (12:43:25 PM CDT, twenty minutes after Graves's outbound): > "Rod, > > We are good with the proposed guidelines. > > Thanks, > PJ > > PJ Kelly, CFA, CAIA > Partner" > PJ Kelly to Rod Graves, [EXTERNAL] Re_ guidelines.eml, 9/25/2025 12:43 PM CDT The substantive content of Kelly's reply is five words: "We are good with the proposed guidelines." The structural finding is that the Aon consultant approval of the investment parameters governing ATRS's $50 million Israel Bonds mandate, including the permissible-security universe, the WAL target band, the cash holdings target, and the laddered-portfolio objective, was conveyed in five words by email approximately twenty minutes after the consultant first saw the document. No substantive analytical engagement on the guidelines, no proposed revisions, no flagged concerns, no documented review by the Comstock side of the Kelly + Comstock team (Comstock is on the To line but does not appear as a separate reply). The pattern is structurally parallel to the empty Kelly + Comstock memo on Israel Bonds at the 6/2 ATRS Board packet documented at [[atrs-bot-packets-7-3-25]]. At the authorization stage on 6/2/2025, the Aon "advice" cited in Resolution 2025-22's preamble was the empty Kelly + Comstock memo header. At the contract-execution stage on 9/25/2025, the Aon "approval" of the Investment Guidelines was the five-word email reply. The wiki's documented pattern is that consultant analytical engagement on Israel Bonds at every documented inflection point is substantively thin: pre-vote packet (empty memo), at-vote IC defense (White's "checks the box" framing per [[atrs-ic-audio-6-2-25]]), at-vote BOT motion language (Martin's "on recommendation of the board's investment consultant" framing per [[atrs-bot-audio-6-2-25]]), post-vote contract execution (Kelly's five-word email). The substantive analytical question this pattern raises is the same question the [[independent-credit-analysis-gap]] concept page addresses: whether the Aon consultant role on Israel Bonds is structurally constrained by securities licensure (the framing White deployed verbally at the 6/2 IC and in his 7/2/2025 Lenow response) or whether the consultant role was chosen to be procedural-compliance-only despite the consultant's capacity for substantive analytical work product. The 9/25/2025 five-word approval does not directly resolve the question but extends the documented pattern of consultant-thin engagement to the contract-execution stage. ## Amendment 1 (effective 11/20/2025) Amendment 1 to Contract 4600057154 is dated effective 11/20/2025 and signed 11/14/2025 by Edward Rick as Reams President and 11/20/2025 by Mark White as ATRS Executive Director. The amendment cover sheet (SRV-1A) documents the three substantive purposes: > "This amendment clarifies: (1) the investment management duties required of the vendor, (2) circumstances underwhich an in-kind transfer of ATRS assets may occur, and (3) when ATRS assets may be transferred in the event of the resignation or removal of the vendor as an investment manager for ATRS." > 0375_4600057154_A1.pdf p.1, Section 3 (Purpose of Amendment) The amendment cover sheet also corrects an error in the Original Contract face: the Updated Total Projected Cost reads "$30,000.00" (struck through) replaced with "$210,000.00." The original contract face had carried the one-year base term Initial Contract Amount of $30,000 into the Total Projected Contract Amount field; the amendment corrects this to the seven-year total of $210,000. ### New WHEREAS preamble The Amendment 1 IMA face introduces a new WHEREAS preamble not present in the original: > "WHEREAS, the Board overseeing Client (the 'Board') has approved a mandate for investment of up to $50 million of Client's plan assets in State of Israel Jubilee Fixed Rate Bonds ('Jubilee Bonds') over a period of the next few years." > 0375_4600057154_A1.pdf p.4, IMA Amendment 1 preamble The amendment WHEREAS preamble codifies in the contract text three substantive facts: (1) the $50 million Board-approved mandate, (2) the deployment-into-"State of Israel Jubilee Fixed Rate Bonds" structure, and (3) the deployment timing as "over a period of the next few years." The "over a period of the next few years" language is the contract-codified version of the laddered-deployment framing White verbally previewed on 5/22/2025 and that Martin invoked at the BOT motion language documented at [[atrs-bot-audio-6-2-25]]. The framing is "over a period of the next few years" rather than "single quarter deployment" — consistent with the laddered structure White previewed, not consistent with the December 2025 single capital call documented at [[atrs-reams-capital-call-execution]] as the funding event. A second WHEREAS preamble: > "WHEREAS, the Board has approved the appointment of Investment Manager as an investment manager for the purpose of managing the investment in Jubilee Bonds through a separately managed Investment Account with Investment Manager, and Investment Manager agrees to accept such appointment with respect to the investment in and management the Assets in the Investment Account. The Assets in the account will be held with State Street Bank & Trust Company, as may be changed by the Client from time to time ('Custodian')." > 0375_4600057154_A1.pdf p.4, IMA Amendment 1 preamble The custodian is State Street Bank & Trust Company. The State Street custodial arrangement is consistent with the wiki's [[ssga-cmx6-2024-11-30]] documentation of ATRS's broader State Street relationship. ### New Section 3.00(a) — the illiquidity acknowledgment Amendment 1 introduces a new Section 3.00(a) in Article III Representations of the Client: > "Client understands and acknowledges (1) the limitations on transferability and the illiquid nature of Jubilee Bonds, and (2) that it has directed Investment Manager to purchase the Jubilee Bonds as the primary investment to be held within the Investment Account pursuant to the Investment Guidelines agreed upon with Investment Manager and attached hereto as Exhibit A." > 0375_4600057154_A1.pdf p.5, IMA Section 3.00(a) The provision is the contract-codified illiquidity acknowledgment by ATRS. Two substantive elements: (a) ATRS's acknowledgment of the limitations on transferability and the illiquid nature of Jubilee Bonds, and (b) ATRS's acknowledgment that it directed Reams to purchase the Jubilee Bonds as the primary investment. The (b) element is structurally significant — the contract documents that the purchase direction came from ATRS to Reams, not as a recommendation Reams developed independently and ATRS adopted. The "directed Investment Manager to purchase" language closes the documentary question of who decided the substantive investment policy (ATRS, via Resolution 2025-22 and the subsequent contract amendment) versus who executes within that policy (Reams, exercising "sole discretionary authority" under Section 5.00 within the Investment Guidelines). ### Modified Section 6.01 — transfer in kind Section 6.01 Transfer of Assets is amended to add a closing sentence: > "In this regard, Client acknowledges that the illiquid nature of the Jubilee Bonds will necessitate transfer in kind of those securities under most circumstances." > 0375_4600057154_A1.pdf p.9, IMA Section 6.01 The transfer-in-kind acknowledgment is the operational mechanism for the illiquidity acknowledgment at 3.00(a). Transferring illiquid securities between investment accounts will typically require in-kind transfer rather than cash sale and repurchase, because no liquid market exists in which to sell and rebuy the underlying Jubilee Bonds positions. ### Modified Section 8.00 — resignation and removal Section 8.00 Resignation and Removal of Investment Manager is amended to add four sentences on the in-kind transfer mechanics in the event of Reams's resignation or removal: > "In the event of such removal or resignation, should Client elect to transfer the Assets held within the Investment Account, the Investment Manager shall work cooperatively with Client to facilitate the transfer. Client in its sole discretion shall determine whether Assets held within the Investment Account should be transferred. Investment Manager agrees that a transfer of Assets pursuant to this Section 8.00 shall not be implemented without the written approval of Client. Nothing in this Section 8.00 shall limit or waive Client's authority to revoke the Investment Manager's access and authority to access the Investment Account." > 0375_4600057154_A1.pdf p.10, IMA Section 8.00 The substantive significance is procedural: in the event ATRS terminates the Reams engagement, the in-kind transfer of Jubilee Bonds positions is contemplated and protocolized. ### Revised Investment Guidelines (Exhibit A of Amendment 1) Amendment 1 includes a revised Exhibit A Investment Guidelines, presented on Reams Asset Management branded letterhead with the title "Arkansas Teacher Retirement System Israeli Bond Account." The revised guidelines are substantively different from the 9/25/2025 original at three points. The revised Objective: > "Create and maintain a laddered portfolio of Israel Jubilee Institutional bonds. Due to the lack of a secondary market for these securities and limited transferability, emphasis will be placed on shorter maturities of premium Israel Jubilee Institutional bonds. Additionally, the investment manager will target no more than $10 million in private placement bond purchases in any calendar year." > 0375_4600057154_A1.pdf p.15, Exhibit A Objective Two substantive changes from the original: (a) "premium Israel Jubilee Institutional bonds" replaces "Israel Jubilee Institutional bonds" — the qualifier "premium" is added but not defined in the document; (b) **a new sentence codifies the $10M per calendar year private placement target.** The verbatim text is "the investment manager will target no more than $10 million in private placement bond purchases in any calendar year." The target is a target, not a hard cap; the language "will target no more than" is hortatory rather than restrictive. The Permissible Securities section is unchanged from the original guidelines. The revised Weighted Average Life: > "The investment manager will target a portfolio weighted average life between 2.0 and 6.0 years. Cash flows will be reinvested in Israel Jubilee Institutional bonds or other permissible securities to maintain weighted average life within the target band." > 0375_4600057154_A1.pdf p.15, Exhibit A Weighted Average Life The WAL target band is relaxed from 3.0-6.0 years to 2.0-6.0 years. The change accommodates shorter-maturity holdings consistent with the "shorter maturities" emphasis. The "on a temporary basis" phrase from the original is dropped in the amendment. The revised Maximum Cash Holdings: > "The intention of the portfolio is to eventually be invested primarily in Israel Jubilee Institutional bonds, but recognizing the lack of a secondary market, the investment manager will methodically invest only a portion of the portfolio in these securities each calendar year. While exercising prudence in investing in Israel Jubilee Institutional bonds or during mismatches in cash flows, the manager may invest in other permissible securities. Except prior to the initial purchases or following any significant cash flows in the portfolio, cash should not exceed 7% of the portfolio." > 0375_4600057154_A1.pdf p.15, Exhibit A Maximum Cash Holdings The substantive change adds the "methodically invest only a portion of the portfolio in these securities each calendar year" language. The phrase operationalizes the $10M/CY target into a portfolio-pacing requirement. The original guidelines' framing of the portfolio as "remain fully invested in Israel Jubilee Institutional bonds" is replaced with "eventually be invested primarily in Israel Jubilee Institutional bonds" — the temporal framing shifts from a steady-state full-investment to a transition-state methodical deployment. ## The $10M/CY target and the December 2025 capital call timing The contract-codified deployment cadence (revised Investment Guidelines effective 11/20/2025) and the documented ATRS-to-Reams capital call (Graves's 12/29/2025 ATRS Board Update-Liquidity email at [[auditor-foia-r3-3-3-26]]) sit five weeks apart. The amendment effective date precedes the capital call by approximately 39 days. The wiki's prior framing at [[atrs-reams-capital-call-execution]] of the "single $50M capital call vs five-year laddered deployment" disjunction is substantially refined by the amendment timing and content: The $50M from ATRS to Reams in December 2025 is a single funding event. The Reams-to-DCI Israel Jubilee Institutional bond purchases are contract-required to be laddered at the $10M/CY target. The deployment-to-product structure remains the laddered deployment White verbally previewed on 5/22/2025; the capital-call mechanism (single ATRS-to-Reams funding event, then laddered Reams-to-DCI deployment under the contract guidelines) is the operationalization. The Reams Asset Management actual deployment cadence into Israel Jubilee Institutional bonds during CY 2025 is not knowable from the contract documents alone. CY 2025 had approximately 32 days remaining when the 12/29/2025 capital call occurred (12/29/2025 through 12/31/2025 is 3 days; the broader window is the entire post-amendment period 11/20/2025 through 12/31/2025, approximately 42 days). Whether Reams purchased $10M of Israel Jubilee Institutional bonds in late CY 2025 against the $10M CY 2025 target, or held the entire $50M in cash and US Treasurys until CY 2026, is a continuing FOIA target. The Reams quarterly performance report for Q4 2025 (due to the ATRS Board under Section 5.06) and the Reams monthly valuation report for December 2025 (due to ATRS staff under Section 5.06) would document the actual deployment cadence. ## Evidence ### The contract scope is Israel-Bonds-specific > "In June 2025, in accordance with ACA 24-2-618 the Board of Trustees of the Arkansas Teacher Retirement System (ATRS Board) voted and approved to hire Scout Investments, Inc., through its Reams Asset Management Division as a fixed income manager to implement and manage an investment in Israel Bonds over time." > 0375_4600057154_OR.pdf p.1, Section 2 ### The fee structure > "Fees will be paid in arrears on a quarterly basis. The fee amount is calculated by multiplying the market value as reported by the ATRS custodial bank by 3 bps for the balance of the account." > 0375_4600057154_OR.pdf p.2, Section 5 ### The reporting obligations > "The Investment Manager shall furnish the Client with monthly valuations of the Investment Account, valued as of the last business day of the month, together with a summary of purchases and sales, quarterly performance tabulations, and such other reports as shall be agreed upon from time to time." > 0375_4600057154_OR.pdf p.16, Section 5.06 ### The five-word Aon approval > "Rod, We are good with the proposed guidelines. Thanks, PJ" > PJ Kelly to Rod Graves, [EXTERNAL] Re_ guidelines.eml, 9/25/2025 12:43 PM CDT ### The Amendment 1 WHEREAS preamble > "WHEREAS, the Board overseeing Client (the 'Board') has approved a mandate for investment of up to $50 million of Client's plan assets in State of Israel Jubilee Fixed Rate Bonds ('Jubilee Bonds') over a period of the next few years." > 0375_4600057154_A1.pdf p.4 ### The illiquidity acknowledgment > "Client understands and acknowledges (1) the limitations on transferability and the illiquid nature of Jubilee Bonds, and (2) that it has directed Investment Manager to purchase the Jubilee Bonds as the primary investment to be held within the Investment Account pursuant to the Investment Guidelines agreed upon with Investment Manager and attached hereto as Exhibit A." > 0375_4600057154_A1.pdf p.5, IMA Section 3.00(a) ### The $10M/CY private placement target > "the investment manager will target no more than $10 million in private placement bond purchases in any calendar year" > 0375_4600057154_A1.pdf p.15, Exhibit A Objective ### The methodical-deployment language > "the investment manager will methodically invest only a portion of the portfolio in these securities each calendar year" > 0375_4600057154_A1.pdf p.15, Exhibit A Maximum Cash Holdings ## Cross-References [[atrs-reams-capital-call-execution]] December 2025 single-quarter $50M ATRS-to-Reams capital call whose deployment cadence into Israel Jubilee Institutional bonds is contract-paced at $10M/CY under Amendment 1's revised Investment Guidelines [[atrs-resolution-2025-22]] the underlying 6/2/2025 Board authorization the contract operationalizes [[atrs-bot-packets-7-3-25]] the 6/2 packet containing the empty Kelly + Comstock memo on Israel Bonds; the 9/25/2025 five-word Aon approval of the Investment Guidelines extends the consultant-thin engagement pattern to the contract-execution stage [[independent-credit-analysis-gap]] the contract documents extend the gap from the pre-vote and at-vote stages to the post-execution contract-management stage; Section 5.06 reporting obligations contain no credit-analysis reporting requirement on Reams [[reams-asset-management]] the manager entity whose contract this page documents [[pj-kelly]] [[katie-comstock]] Aon consultants whose 9/25/2025 five-word approval is captured here [[rod-graves]] ATRS Investment Officer who sent the 9/25/2025 outbound consultant-approval request [[mark-white]] ATRS Executive Director who signed the original contract 9/25/2025 and Amendment 1 11/20/2025 [[atrs-ic-audio-6-2-25]] 6/2 IC recording capturing White's verbal preview of the laddered deployment ("they purchase 5 year notes and they purchase 10 million in the first year 10 million in the second year") that the Amendment 1 Investment Guidelines subsequently codified at the $10M/CY target [[atrs-board-audio-12-1-25]] 12/1 Board day on which the post-amendment, pre-capital-call ATRS Board met without engaging on the contract amendments or the impending December capital call