(a) Legislative findings.
(1) Emerging investment managers, including businesses owned by women, minorities and disabled individuals, should receive an equal opportunity to provide investment management services to the Consolidated Retiree Health Benefits Trust Board.
(2) The Board has adopted a policy requiring its staff to identify qualified emerging investment managers to participate in an investment manager search, including regular monitoring of investment managers.
(3) Expanding opportunities for emerging investment managers will increase competition.
Assets means total client assets managed by an investment manager.
Emerging investment manager means:
(1) an investment manager with assets or product assets below the 75th percentile of their respective peer group; or
(2) a new or developing investment manager.
New or developing investment manager means an investment manager:
(1) raising its first or second private institutional investment fund; or
(2) creating its first institutional product.
Product Assets means client assets managed by an investment manager in a single strategy.
(c) Consistent with the fiduciary duties established in Section 33-163, the Board must make a good faith effort to remove any barriers that limit participation by qualified emerging investment managers to manage funds for the Consolidated Retiree Health Benefits Trust Fund.
(d) The Board must adopt guidelines to identify and evaluate qualified emerging investment managers. The guidelines must include procedures for:
(i) identifying possible firms;
(ii) reviewing, evaluating and interviewing emerging investment managers on an ongoing basis; and
(iii) maintaining research files on emerging investment managers.
(e) 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:
(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. (, § 1.)
