Louisiana Administrative Code › Title 71 - TREASURY-PUBLIC FUNDS › Part I - Public Funds Investments › Chapter 1 - Education Quality Trust Fund Investment Procedures › Section I-115 - Selection of Outside Investment Managers

Current through Register Vol. 50, No. 6, June 20, 2024
A. Minimum Requirements for Outside
				Investment Managers. Each investment manager chosen to manage any assets must
				be a registered investment advisor and in good standing with the Securities and
				Exchange Commission under the Investment Advisors Act of 1940, or, if a bank,
				in good standing with the appropriate federal and/or state regulatory
				officials.
B. Required Information.
				As a part of the information obtained from investment manager(s) proposing to
				become managers of any assets, such manager must provide five consecutive years
				of verifiable performance rates of return calculated on a time-weighted basis.
				These performance numbers must be based on a composite of fully discretionary
				accounts with a similar investment style and be reported net and gross of
				investment management fees.
C.
				Compensation Basis. Investment managers shall be compensated on a basis point
				fee as a percentage of assets contracted to manage.
D. Contract Provisions. Each contract which
				the state treasurer enters with an outside investment manager for managing the
				investment of the assets must contain, at a minimum, the following (in addition
				to any other provisions otherwise required by applicable law or rule in such
				contracts).
1. The investment manager shall
				manage the LEQTF assets under its care, custody, or control in accordance with
				applicable federal and Louisiana law, regulations, and rules, as well as with
				the goals and any investment policies or procedures which the state treasurer
				may have established from time to time.
2. Investment managers shall be evaluated by
				comparison to managers of like investment style or strategy.
3. The contract shall contain an
				acknowledgment by the investment manager of its fiduciary responsibility to the
				beneficiaries.
4. Investment
				managers shall notify the state treasurer immediately of any material matters
				or changes pertaining to the investment of the LEQTF, as well as any material
				changes of staff and/or ownership of the firm.
5. Investment managers shall make a
				presentation on the status and performance of the assets managed to the state
				treasurer and, if asked, to the advisory panel at least annually, and may be
				required to appear more frequently if deemed appropriate by the state
				treasurer. As a part of this presentation, the investment manager must provide
				written reports on, and be prepared to discuss, the following:
a. portfolio goals and objectives;
b. financial markets and economic
				outlook;
c. portfolio
				performance;
d. transactions,
				including brokerage;
e. accounting
				for dispersions between results of the assets managed and those assets of the
				LEQTF or of other entities managed by investment managers of similar or like
				style and strategy.
6.
				Investment managers shall submit quarterly a written report to the state
				treasurer detailing investment performance, financial markets and economic
				outlook, and accounting of dispersions from the benchmarks established by the
				state treasurer.
7. Investment
				managers shall be paid in arrears on a quarterly basis.