Belmont Investment Regulations

PERAC
Approval
Date

Regulation Number

 

Investment Regulation/Supplemental Regulation

February 14, 2012  

BELMONT RETIREMENT BOARD
SUPPLEMENTARY REGULATION MONDRIAN GLOBAL FIXED
INCOME FUND L.P.

The Belmont Retirement Board may forego the normal procurement process for investment related service (840 CMR 16.08) and transfer assets from the Delaware Pooled Trust Global Fixed Income Portfolio into the Mondrian Global Fixed Income Fund, L.P.

June 27, 2011  

Notwithstanding the provisions of the Code of Massachusetts Regulation 840 CMR 21.01 (2), (3)(a) & (b), (4)(a) & (b), and (5), Belmont, MA Contributory Retirement System through its duly constituted Retirement Board may invest funds of the Retirement System in the fund known as the PIMCO All Asset Fund within the meaning of the Employee Retirement Income Security Act of 1974 (ERISA).

The PIMCO All Asset Fund shall not be subject to the existing provisions of 840 CMR 21.01 (2), (3)(a) & (b), (4)(a) & (b), and (5), but shall be subject to the prohibited investment provisions under ERISA guidelines.

The prohibited investment provisions that apply to the PIMCO All Asset Fund portfolio shall be defined relying upon ERISA statutory exemptions and the administrative class exemptions and regulations, specifically QPAM Exemption 84-14, as amended (“PTCE 84-14"), Prohibited Transaction Class Exemption 91-38 (“PTCE 91-38") issued by the Department of Labor and other ERISA applicable regulations retroactive to the time that PIMCO All Asset Fund began investing the System's funds.

May 11, 2011 19.01(4)

The Belmont Retirement Board is authorized to raise its maximum allocation to real estate investments from 10% to 14%.  The Board’s asset allocation analysis indicates that by reducing exposure to both equities and core bonds and adding exposure to real estate, an asset class seen to offer good value in the current market, the volatility of the Board’s portfolio will substantially decline and its risk-adjusted return will increase.

November 17, 2006

(3)(b), (4)(a-c), and (5)
                               

In accordance with Investment Guideline 99-2, the Belmont Retirement System is authorized to modify its international equity management mandate with Julius Baer Asset Management by transferring its assets from the Julius Baer International Equity Strategy Fund to the Julius Baer International Equity Trust Fund.  The new fund is a commingled fund specifically structured for the firm’s pension fund clients. There is no change in strategy or benchmark, but the new fund offers greater liquidity for clients.  It also has broader authorization to employ certain derivatives for hedging and liquidity purposes, consistent with the overall strategy of the Fund. At times, such derivative use may exceed the level envisioned by existing PERAC regulations and guidelines.

10/10/1996

 

 

 

840 CMR 21.00:

(3) Prohibited Investments Futures Contracts other than as follows:

(c)Futures and options may be employed in the System's commingled international equity and global bond funds in the following two circumstances:

1)   Create a synthetic position in an asset class with the goal of replicating the risk return profile of that asset class, provided that the guidelines for the investment manager allow for such exposures to be created with the underlying assets themselves.

2) Tactically change the exposure of the portfolio to the countries in the investment universe in a prompt and efficient manner.

(d)   Any use of other derivative contracts or derivative securities not specifically mentioned herein is prohibited. As emphasis, it is noted that the following two uses of derivatives are prohibited:

1)Leverage. Derivatives shall not be used to magnify exposure to an asset, asset class, interest rate, or other financial variable beyond that which would be allowed by a portfolio's investment guidelines if derivatives were not used, or otherwise leverage the portfolio in any other way.

2) Speculation. Derivatives shall not be used to create exposures to securities, currencies, indices, or any other financial variable, unless such exposures would be allowed by a portfolio's investment guidelines if created with non‑derivative securities.

11/02/1995

840 CMR 21.00:

Prohibited Investments
(3) Futures Contracts other than as follows:

(a) Currency Futures, Calls and Forward Contracts may be written against securities in the international portfolio by an investment advisor registered under the Investment Advisors Act of 1940 and who has been granted a waiver from PERA for international investments.

(b) Currency Futures, Calls and Forward Contracts may be written against securities in the international portfolio to a maximum of fifty percent (50%) of the international portfolio's non‑dollar holdings at market value. Speculative currency positions unrelated to underlying portfolio holdings are strictly prohibited.

10/26/1995

20.03(4)

International equity and fixed income investments shall not exceed
20% of the total portfolio valued at market.

11/19/1992

20.03(4)


20.04(6)


20.07(5)

International equity and fixed income investments shall not exceed
15% of the total portfolio valued at market.

Foreign corporations and obligations issued and guaranteed by foreign governments.

Equity investments shall be made only in securities listed on a United States stock exchange, traded over the counter in the United States or traded in foreign stock markets.

07/29/1992

18.02(4)

 



18.02(5)

Rate of Return.

A statement of the rate of return objective for the entire portfolio
which shall be a real rate of return (after inflation) of at least 4% per
year.

Risk.
Total portfolio risk exposure should reasonably be centered in the
midrange (25th to 75th percentile) of comparable Public Funds.
Risk‑adjusted returns are expected to consistently rank in the top half
of comparable Public Funds.

02/21/1992

4.03:

Copies to be Sent to PERA
(1) Within four (4) weeks of the close of each month, after all entries for the month have been posted and a trial balance performed, the board shall send to the Public Employee Retirement Administration a photocopy of the following for the month:

(a)cash book entries;
(b) trial balance; and
(c)  journal entries.

12/20/1991

16.02(3)

 

 

 


16.02(4)

The board may incur expenses for investment advice or management of the funds of the system by a qualified investment manager and the board may incur expenses for consulting services. Such expenses may be charged against earned income from investments provided that the total of such expenses shall not exceed in any one year:

(a)1% of the value of the fund for the first $5 million; and
(b)0.5% of the value of the fund in excess of $5 million.

The board may employ a custodian bank and may charge such expenses against earned income from investments provided that such expenses shall not exceed in any one year .08% of the value of the fund.

12/21/1987

20.04(6)

American Depository Receipts listed on a United States stock
exchange or traded over the counter in the United States, provided
that any such investments not exceed 5% of the total book value of
equity investments.

03/04/1987

20.03(1)


20.03(2)

 

20.04(6)

Equity investments shall not exceed 65% of the total book value of
the portfolio at the time of purchase.

At least 35% but no more than 80% of the total portfolio valued at
market shall consist of fixed income investments with a maturity of
more than one year.

American Depository Receipts listed on a United States stock
exchange or traded over the counter in the United States.