PERAC Memo #12 - 1997: Year-End Reporting Requirements for Pooled Fund Investments

Year-End Reporting Requirements for Pooled Fund Investments

Summary

This memo reminds boards that all investments—whether separately managed or held in pooled funds (mutual funds, commingled funds, group trusts, limited partnerships, venture capital funds, etc.)—must comply with G.L. c. 32 and 840 CMR. Boards must submit, or ensure pooled fund managers submit, a year-end (12/31/96) report for each pooled fund investment detailing underlying assets, portfolio turnover rate, expense-to-asset ratio, and rate of return (noting gross or net); this data is typically available in the fund's prospectus or annual report, which may be submitted to satisfy the request. No action is needed for PRIT Fund investments, as PRIM reports that data directly to PERAC.

Full Text

PERAC MEMO #12/1997 M E M O R A N D U M TO:All Retirement Boards FROM:John J. McGlynn, Executive Director DATE:February 12, 1997 Please be advised that all investments of the board, separately managed or in a pooled fund, must comply with G.L. c. 32 and PERAC Regulations (840 CMR). Pooled funds are investment vehicles such as mutual funds, commingled funds, group trusts, real estate funds, limited partnership funds, and venture capital funds. In this regard, each board must submit or request that pooled fund managers (if any) submit to PERAC a year-end report (12-31-96) for each of the board’s pooled fund investments that provides the following information:

A detailed listing of all the underlying assets in the portfolio including cash and short-term investments as of 12-31-96.
Portfolio turnover rate for the period 1-1-96 through 12-31-96.
Ratio of portfolio expenses to assets for the period 1-1-96 through 12-31-96.
Portfolio rate of return for the period 1-1-96 to 12-31-96 (indicate whether return(s) provided is net or gross). Please be advised that this requested information is generally contained in the prospectus and/or annual report of a pooled fund and the submission of these reports to PERAC should satisfy the requirements of this request. If the fund’s year-end is not 12-31-96 and the prospectus and annual statement are not available for this period, it is acceptable to submit such reports which include twelve (12) months of fund data for the period closest to 12-31-96. Please note that PRIM submits all of the required reports for the PRIT Fund directly to PERAC, therefore, it is not necessary for boards to submit information on the PRIT Fund. It is vital that the information requested herein be provided to protect the interest of the members of your system. If you have any questions, please call Robert Shaw, Director of the Pension Investment Advisory Unit, at 727-9380 ext. 637. /sjk