Agenda Item 18
March 2, 2012
Robert H. Drummer, Senior Legislative Attorney ( ; ' )
Bill 2-12, Personnel - Retirement Trust Funds
Government Operations and Fiscal Policy Committee recommendation (3-0): approve the
Bill as introduced.
Bill 2-12, Personnel
Retirement Trust Funds
Emerging Investment Managers,
sponsored by the Council President at the request of the County Executive, was introduced on
January 17,2012. A public hearing was held on February
and a Government Operations and
Fiscal Policy Committee worksession was held on February 27.
Bill 2-12 would require the Board of Investment Trustees and the Consolidated Retiree
Health Benefits Trust Board of Trustees to make a good faith effort, consistent with their
fiduciary duties, to hire qualified emerging investment managers. The Board of Investment
Trustees (BIT) is responsible for managing the assets in the Employees' Retirement Trust Fund.
The Consolidated Retiree Health Benefits Trust Board of Trustees is responsible for managing
the assets in the Consolidated Retiree Health Benefits Trust Fund. Both Boards regularly hire
professional investment managers to fulfill this responsibility.l
Under the Bill, an "emerging investment manager" means an investment manager with
assets or product assets below the 75
percentile of their respective peer group or a new or
developing investment manager. The Bill would require each Board to adopt guidelines to
identify and evaluate qualified emerging investment managers. Each Board would also be
required to report annually to the Council and the Executive on or before September 1 for the
prior fiscal year. The report must:
(1) identify each emerging investment manager used during the fiscal year;
(2) list the percentage and dollar value of the assets of the trust fund, by investment
sector, managed by each emerging investment manager; and
(3) describe the good faith effort made to include qualified emerging investment
managers in the procurement process during the fiscal year.
The Consolidated Retiree Health Benefits Trust Fund was recently established and is just beginning to retain active
managers. The Board has adopted similar policies and will ultimately follow similar guidelines to hire managers
and invest funds.