§ 11:316 — Terror-free fund

Louisiana § 11:316

• Jurisdiction: Louisiana
• Title 11: Consolidated Public Retirement Systems

Text

§316. Terror-free fund
A. As used in this Section, the following terms shall have the following meaning
unless a different meaning is clearly required by the context:
(1) "Screened equities" means stocks or other ownership interest in a company
identified as having facilities or employees located in a prohibited nation, which equities are
excluded from the terror-free fund.
(2) "Terror-free equities" means equities in companies not identified as having
facilities or employees located in a prohibited nation.
(3) "Terror-free fund" means an international fund or separately managed account
which identifies equities in companies having facilities or employees located in a prohibited
nation and excludes them from the fund.
B. Each system or fund to which this Subpart applies that has an investment strategy
which includes allocation to international markets shall communicate with investment
managers with international investment experience for the establishment of an international
terror-free fund. The communication shall stipulate that, as part of managing such fund, the
manager shall replace the screened equities with comparable terror-free equities, sell the
screened equities, or adjust the weighting of remaining equities held in a system's portfolio.
Each system having an investment strategy which includes allocation to international markets
shall allocate a portion of its international investments to such terror-free fund.
C. If a system having an investment strategy which includes allocation to
international markets does not possess sufficient assets to meet the minimum investment
required by the manager to create a terror-free fund on the system's behalf alone, such system
shall join an existing terror-free fund established pursuant to this Section or shall join with
another system to meet such minimum investment requirements for the purpose of
establishing a terror-free fund common to those systems.
D. Each system shall adopt rules necessary to implement the provisions of this
Section.
E. Each system shall report compliance with this Section to the House of
Representatives and Senate committees on retirement as part of the report submitted pursuant
to R.S. 11:312(C).
F. Nothing in this Section shall require a system to invest in international markets
unless otherwise part of the investment strategy adopted by the system. If a system invests
in international markets and utilizes collective funds or index funds for such purpose, this
Section shall apply.

Legislative History

Acts 2007, No. 352, §1; Acts 2008, No. 220, §4, eff. June 14, 2008; Acts 2018, No. 45, §1, eff. May 10, 2018.