Bill
No.
2-12
Concerning: Personnel - Retirement
Trust Funds - Emerging Investment
Managers
Revised: December
22. 2011
Draft No.1.
Introduced:
January
17.2012
Enacted:
March
6.2012
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:--:.N.:.:o::.!..n:.::::e_ _ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN
ACT to:
(1)
(2)
require the Board of Investment Trustees and the Consolidated Retiree Health
Benefits Trust Board of Trustees to make a good faith effort to hire qualified
emerging investment managers; and
generally amend the laws governing the Employees' Retirement System and the
Consolidated Retiree Health Benefits Trust Fund.
By adding
Montgomery County Code
Chapter 33, Personnel and Human Resources
Sections 33-60B and 33-162A
Boldface
Underlining
[Single boldface brackets]
OQ.ublel.mderlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deleted from existing law by original bill.
Added by amendment.
Deleted from existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
2-12
Sec.
1.
Sections 33-60B and 33-162A are added as follows:
2
33-60B.
Emer2ing Investment Managers.
3
4
5
ill
Legislative findings.
ill
Emerging investment managers, including businesses owned
Qy
women, minorities and disabled individuals, should receive an
equal opportunity to provide investment management services
to the Board of Investment Trustees.
6
7
8
9
10
11
ill
The Board of Investment Trustees has adopted
f!
policy
requiring its staff to identify qualified emerging investment
managers to participate in an investment manager search,
including regular monitoring of investment managers.
12
13
ill
[hl
Expanding opportunities for emerging investment managers
will increase competition.
14
15
16
Definitions.
As used in this Section:
Assets
means total client assets managed
Qy
an investment manager.
Emerging investment manager
means:
17
18
19
ill
ill
an investment manager with assets or product assets below the
75 percentile of their respective peer group; or
f!
new or developing investment manager.
th
20
21
22
23
24
New or developing investment manager
means an investment
manager:
(1)
raising its first or second private institutional investment fund;
or
25
(2)
creating its first institutional product.
26
27
Product Assets
means client assets managed
Qy
an investment
manager in
f!
single strategy.
-2­
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
2-12
28
29
ill
Consistent with the fiduciary duties established in Section 33-61C, the
Board must make
f!
good faith effort to remove any barriers that limit
participation
Qy
qualified emerging investment managers to manage
funds for the Employees' Retirement System.
30
31
32
33
34
35
@
The Board must adopt guidelines to identify and evaluate qualified
emerging investment managers.
procedures for:
The guidelines must include
36
37
38
39
40
41
ill
ill
ill
identifying possible firms;
reviewing, evaluating and interviewing emerging investment
managers on an ongoing basis; and
maintaining research files on emerging investment managers.
W
The Board must report annually to the Council and the Executive on
compliance with this Section on or before September
1
for the prior
fiscal year. The report must:
42
43
44
45
ill
ill
identify each emerging investment manager used during the
fiscal year;
list the percentage and dollar value of the assets of the trust
fund,
Qy
investment sector, managed
Qy
each emerging
investment manager; and
46
47
48
49
50
51
ill
describe the good faith effort made to include qualified
emerging investment managers in the procurement process
during the fiscal year.
33-162A.
(g}
Emerging Investment Managers.
Legislative findings.
52
53
ill
Emerging investment managers, including businesses owned
Qy
women, minorities and disabled individuals, should receive an
-3­
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
2-12
54
55
56
57
58
59
equal opportunity to provide investment management services
to the Consolidated Retiree Health Benefits Trust Board.
ill
The Board has adopted !! policy requiring its staff to identify
qualified emerging investment managers to participate in an
investment manager search, including regular monitoring of
investment managers.
60
61
62
ill
(hl
Expanding opportunities for emergmg investment managers
will increase competition.
Definitions.
63
64
65
66
As used in this Section:
Assets
means total client assets managed
.Qy
an investment manager.
Emerging investment manager
means:
ill
ill
an investment manager with assets or product assets below the
75
th
percentile of their respective peer group; or
!! new or developing investment manager.
67
68
69
70
71
72
New or developing investment manager
means an investment
manager:
(I)
raising its first or second private institutional investment fund;
or
73
74
75
76
(2)
creating its first institutional product.
Product Assets
means client assets managed
hv
an investment
manager in !! single strategy.
(£l
Consistent with the fiduciary duties established in Section 33-163, the
Board must make!! good faith effort to remove any barriers that limit
participation
.Qy
qualified emerging investment managers to manage
funds for the Consolidated Retiree Health Benefits Trust Fund.
77
78
79
- 4­
 PDF to HTML - Convert PDF files to HTML files
BILL No. 2-12
80
81
@
The Board must adopt guidelines to identify and evaluate qualified
emerging investment managers.
procedures for:
(i)
(ii)
identifying possible firms;
revIewmg,
evaluating
and
interviewing
emergmg
The guidelines must include
82
83
84
85
86
87
88
89
investment managers on an ongoing basis; and
(iii)
maintaining research files on emerging investment
managers.
ill
The Board must report annually to the Council and the Executive on
compliance with this Section on or before September
1
for the prior
fiscal year. The report must:
90
91
ill
identify each emerging investment manager used during the
fi seal year;
92
93
ill
list the percentage and dollar value of the assets of the trust
fund,
Qy
investment sector, managed
Qy
each emerging
investment manager; and
94
95
96
97
ill
describe the good faith effort made to include qualified
emerging investment managers in the procurement process
during the fiscal year.
98
-5­
 PDF to HTML - Convert PDF files to HTML files
BILL No. 2-12
99
100
101
Approved:
102
Approved:
103
Isiah Leggett, County Executive
104
Date
This is a correct copy ofCouncil action.
105
Linda M. Lauer, Clerk of the Council
Date
- 6­
 PDF to HTML - Convert PDF files to HTML files
Bill
No.
2-12
Concerning: Personnel - Retirement
Trust Funds - Emerging Investment
Managers
Revised: December
22. 2011
Draft No.1.
Introduced:
January
17.2012
Enacted:
March
6.2012
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:--:.N.:.:o::.!..n:.::::e_ _ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN
ACT to:
(1)
(2)
require the Board of Investment Trustees and the Consolidated Retiree Health
Benefits Trust Board of Trustees to make a good faith effort to hire qualified
emerging investment managers; and
generally amend the laws governing the Employees' Retirement System and the
Consolidated Retiree Health Benefits Trust Fund.
By adding
Montgomery County Code
Chapter 33, Personnel and Human Resources
Sections 33-60B and 33-162A
Boldface
Underlining
[Single boldface brackets]
OQ.ublel.mderlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deleted from existing law by original bill.
Added by amendment.
Deleted from existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
2-12
Sec.
1.
Sections 33-60B and 33-162A are added as follows:
2
33-60B.
Emer2ing Investment Managers.
3
4
5
ill
Legislative findings.
ill
Emerging investment managers, including businesses owned
Qy
women, minorities and disabled individuals, should receive an
equal opportunity to provide investment management services
to the Board of Investment Trustees.
6
7
8
9
10
11
ill
The Board of Investment Trustees has adopted
f!
policy
requiring its staff to identify qualified emerging investment
managers to participate in an investment manager search,
including regular monitoring of investment managers.
12
13
ill
[hl
Expanding opportunities for emerging investment managers
will increase competition.
14
15
16
Definitions.
As used in this Section:
Assets
means total client assets managed
Qy
an investment manager.
Emerging investment manager
means:
17
18
19
ill
ill
an investment manager with assets or product assets below the
75 percentile of their respective peer group; or
f!
new or developing investment manager.
th
20
21
22
23
24
New or developing investment manager
means an investment
manager:
(1)
raising its first or second private institutional investment fund;
or
25
(2)
creating its first institutional product.
26
27
Product Assets
means client assets managed
Qy
an investment
manager in
f!
single strategy.
-2­
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
2-12
28
29
ill
Consistent with the fiduciary duties established in Section 33-61C, the
Board must make
f!
good faith effort to remove any barriers that limit
participation
Qy
qualified emerging investment managers to manage
funds for the Employees' Retirement System.
30
31
32
33
34
35
@
The Board must adopt guidelines to identify and evaluate qualified
emerging investment managers.
procedures for:
The guidelines must include
36
37
38
39
40
41
ill
ill
ill
identifying possible firms;
reviewing, evaluating and interviewing emerging investment
managers on an ongoing basis; and
maintaining research files on emerging investment managers.
W
The Board must report annually to the Council and the Executive on
compliance with this Section on or before September
1
for the prior
fiscal year. The report must:
42
43
44
45
ill
ill
identify each emerging investment manager used during the
fiscal year;
list the percentage and dollar value of the assets of the trust
fund,
Qy
investment sector, managed
Qy
each emerging
investment manager; and
46
47
48
49
50
51
ill
describe the good faith effort made to include qualified
emerging investment managers in the procurement process
during the fiscal year.
33-162A.
(g}
Emerging Investment Managers.
Legislative findings.
52
53
ill
Emerging investment managers, including businesses owned
Qy
women, minorities and disabled individuals, should receive an
-3­
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
2-12
54
55
56
57
58
59
equal opportunity to provide investment management services
to the Consolidated Retiree Health Benefits Trust Board.
ill
The Board has adopted !! policy requiring its staff to identify
qualified emerging investment managers to participate in an
investment manager search, including regular monitoring of
investment managers.
60
61
62
ill
(hl
Expanding opportunities for emergmg investment managers
will increase competition.
Definitions.
63
64
65
66
As used in this Section:
Assets
means total client assets managed
.Qy
an investment manager.
Emerging investment manager
means:
ill
ill
an investment manager with assets or product assets below the
75
th
percentile of their respective peer group; or
!! new or developing investment manager.
67
68
69
70
71
72
New or developing investment manager
means an investment
manager:
(I)
raising its first or second private institutional investment fund;
or
73
74
75
76
(2)
creating its first institutional product.
Product Assets
means client assets managed
hv
an investment
manager in !! single strategy.
(£l
Consistent with the fiduciary duties established in Section 33-163, the
Board must make!! good faith effort to remove any barriers that limit
participation
.Qy
qualified emerging investment managers to manage
funds for the Consolidated Retiree Health Benefits Trust Fund.
77
78
79
- 4­
 PDF to HTML - Convert PDF files to HTML files
BILL No. 2-12
80
81
@
The Board must adopt guidelines to identify and evaluate qualified
emerging investment managers.
procedures for:
(i)
(ii)
identifying possible firms;
revIewmg,
evaluating
and
interviewing
emergmg
The guidelines must include
82
83
84
85
86
87
88
89
investment managers on an ongoing basis; and
(iii)
maintaining research files on emerging investment
managers.
ill
The Board must report annually to the Council and the Executive on
compliance with this Section on or before September
1
for the prior
fiscal year. The report must:
90
91
ill
identify each emerging investment manager used during the
fi seal year;
92
93
ill
list the percentage and dollar value of the assets of the trust
fund,
Qy
investment sector, managed
Qy
each emerging
investment manager; and
94
95
96
97
ill
describe the good faith effort made to include qualified
emerging investment managers in the procurement process
during the fiscal year.
98
-5­
 PDF to HTML - Convert PDF files to HTML files
BILL No. 2-12
99
100
101
Approved:
102
Approved:
103
Isiah Leggett, County Executive
104
Date
This is a correct copy ofCouncil action.
105
Linda M. Lauer, Clerk of the Council
Date
- 6­