FROM: Don Pierce, Chief Investment Officer
SUBJECT: Annual Alternative Investment Fee Disclosures in Compliance with California Government Code §7514.7
RECOMMENDATION:
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Annual Alternative Investment Fee Disclosures in Compliance with California Government Code §7514.7.
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BACKGROUND:
The California Legislature approved Assembly Bill No. 2833 (“AB 2833”), on August 24, 2016, and was codified into law. The purpose of the legislation is to provide increased transparency regarding investment management fees and expenses paid by public pension plans on alternative investments.
Applicable to all new contracts, and to all existing contracts to which the pension plan has made a new contribution of funds on or after January 1, 2017, the statute calls for annual disclosure, in a meeting open to the public, of the fees and expenses that the public pension plan pays directly to the alternative investment vehicle, the fund manager, or related parties.
In accordance with California Government Code §7514.7, staff presents the attached Alternative Investment disclosure reports for the period of July 1, 2018 - June 30, 2019, to comply with the regulation.
Please note: The data contained in these reports has been received from the investment managers, and is the representation of each manager. While the data has been reviewed for reasonableness, staff makes no representation as to the accuracy or completeness of the data contained in the disclosure responses presented here.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Eydie Cox
ATTACHMENTS:
Exhibit A: Alternative Investment Fee and Expense Reports