§ 9-4-718 — Investment managers

(a) The state treasurer may contract with investment
managers and pay for investment services and investment advice
subject to the following conditions:
(i) All fees and other costs of contracting for and
using the services of an investment manager, except transaction
costs and custodial fees, shall be accounted for on at least a
quarterly basis;
(ii) Without the approval of the board:
(A) No contract with an investment manager shall
permit that manager to manage more than fifteen percent (15%) of
the total portfolio of state funds available for investment at
the time the contract is executed; and
(B) No investment manager under contract with
the state treasurer shall be permitted to act as a securities
broker with respect to transactions involving state investments
managed by such investment manager, unless the transaction can
be made without incurring commission or market impact cost.
(iii) The amount of state funds under contract with
an investment manager shall not exceed ten percent (10%) of the
total assets managed by that investment manager;
(iv) Investment managers shall be selected based upon
a competitive process and with consideration given to the
historical performance of prospective managers. No investment
manager shall be hired unless approved by a majority vote of the
board in consultation with the investment funds committee
created by this act. The contract with an investment manager may
be terminated by a majority vote of the board;
(v) Investment managers shall be paid on a negotiated
flat fee or performance basis based upon net assets invested;
(vi) Contracts with investment managers shall be
subject to cancellation upon receipt of thirty (30) days notice
by either party;
(vii) The state treasurer shall not contract with any
person as an investment manager under this subsection unless
that person or that person's firm has prior to the execution of
the contract, a verifiable CFA Institute (Chartered Financial
Analyst Institute) compliant track record of at least five (5)
years with respect to the type of investments regarding which
the investment manager will provide services or the investment
manager is employed by an organized and chartered bank trust
company with trust assets in excess of one billion dollars
($1,000,000,000.00). Any prospective manager shall submit to the
state treasurer audited financial statements in accordance with
the treasurer's rules and regulations and a certified record of
the manager's past investment performance prepared by an
independent entity;
(viii) Each investment manager shall at least
quarterly provide a report to the state treasurer describing the
manager's performance relative to mutually agreed upon industry
indices and reflecting all brokerage fees and other fees or
expenses paid by or fees earned by the manager which are paid by
the state under the contract.
(b) Repealed by Laws 2015, ch. 11, § 2.
(c) The state treasurer may contract for services to
select an investment manager.