Alternative Investment Transparency Act

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Model Bill Info
Bill Title Alternative Investment Transparency Act
Date Introduced July 27, 2023
Type Model Policy
Status Draft
Task Forces Tax and Fiscal Policy
Keywords Pension Reform

Alternative Investment Transparency Act

(1) Annual Report on Certain Investment Relationships [Bracketed portions may be adjusted for the needs of each state]

(a) Not later than November 1 of each year, the governing body of a public trust, including a public retirement system, shall submit a report to the [office of state treasurer] that details investment relationships maintained by the system. The report must include information regarding each:

(i) subject to Subsection (b), limited partnership with which the system is affiliated; and

(ii) subject to Subsection (c), investment manager and consulting firm with which the system contracts to provide investment management services.

(b) For purposes of Subsection (a)(i), the report must contain:

(i) the name of each limited partnership;

(ii) the date on which the retirement system became affiliated with the limited partnership;

(iii) the amount of capital:

(A) committed;

(B) contributed to the limited partnership; and

(C) distributed from the limited partnership;

(iv) any costs or fees paid or owed to the limited partnership during the period of affiliation, categorized by state fiscal year;

(v) the annualized rate of return on capital invested in the limited partnership; and

(vi) a comparable passive benchmark.

(c) For purposes of Subsection (a)(2), regarding each contract with an investment manager or consulting firm providing investment manager services, the report must contain:

(i) the net value of the assets being managed under the contract, in dollars;

(ii) the nature of the services provided;

(iii) net asset value, in dollars;

(iv) gross fiscal year performance, in dollars;

(v) net fiscal year performance, in dollars; and

(vi) any related management fees, performance fees, carried interest fees, or any other fees charged, in dollars.

(d) The [office of state treasurer] shall post the report received under this section to the office’s publicly accessible Internet website.

(2) Public Trust Board Transparency. Except as otherwise provided in statute, all meetings of public trust fiduciaries, including public retirement system fiduciaries, shall be open to the public. Each meeting shall be publicly broadcast in audio and video at the time it is conducted and archived on the web site of the system within 7 days for future public access and use for no less than ten years.