Quincy Investment Regulations

PERAC Approval
Date

Regulation
Number

Supplemental Investment Regulation

January 5, 2012  

In relation to the investment of the Quincy Retirement System ("System") in Loomis Sayles High Yield Conservative Trust ("Fund"), a constituent investment fund of the Loomis Sayles Trust Company LLC Collective Trust for Employee Benefit Plans ("Trust"), the following will apply:

840 CMR 16.02(5) with respect to indemnification obligations shall not apply to the extent that the System is subject to indemnification obligations as set forth in Section 5(h) of the Adoption Agreement for failure of representations and warranties made by the System to be true and accurate in all respects.

840 CMR 21.01(1) shall not apply to such purchases provided the purchase is made for the purpose of managing default risk and credit exposure, managing duration and yield curve exposure and otherwise to manage the risk of the Fund.

840 CMR 21.01(2) shall not apply to such sales provided the sale is made for the purpose of managing default risk and credit exposure, managing duration and yield curve exposure and otherwise to manage the risk of the Fund.

840 CMR 21.01(3) shall not apply to such contracts provided the contract is entered into for the purpose of managing default risk and credit exposure, managing duration and yield curve exposure and otherwise to manage the risk of the Fund.

840 CMR 21.01(4) shall not apply to such options provided the option is written for the purpose of managing default risk and credit exposure, managing duration and yield curve exposure and otherwise to manage the risk of the Fund.

840 CMR 21.01(5) shall not apply to such purchases provided the purchase is made for the purpose of managing default risk and credit exposure, managing duration and yield curve exposure and otherwise to manage the risk of the Fund.

January 26, 2011 16.08 In accordance with Investment Guideline 99-2, the Quincy Retirement Board is authorized to make a modest modification to its fixed income mandate with State Street Global Advisors.  In order to reduce the risk of capital losses arising from higher interest rates, the Board is decreasing its existing allocation to the SSgA Aggregate Bond Index Fund and initiating a position in the SSgA U.S. 1-3 Year Government/Credit Bond Strategy.  The Board’s consultant solicited and considered proposals from other prominent providers of similar short-term strategies before concluding that SSgA’s product was the best fit for the Board.

June 3, 2010 16.08 In accordance with Investment Guideline 99-2, the Quincy Retirement Board is authorized to make a modest modification to its small cap equity management mandate with Earnest Partners.  In transferring its assets from the existing separate account to Earnest Partners’ small cap value mutual fund, the Board will achieve a substantial reduction in fees as well as bring its overall small cap allocation back to a neutral orientation.

May 20, 2010 21.01 Notwithstanding the provisions of any statute or regulations of the Public Employee Retirement Administration Commission to the contrary, including the provisions of 840 CMR 21.01 et seq., the Quincy Retirement Board is hereby granted an exemption from restrictions on investment and may invest a portion of the funds of the Quincy Retirement System (the “System”) in the fund known as the Adams Street Partnership Fund Program 2010.

January 14, 2010 19.01 For the purpose of further diversifying its portfolio and enhancing its long-term performance, the Quincy Retirement Board is authorized to increase its holdings in alternative investments from 5% to 6%. The Board has been successfully investing in this asset class since 2001.

August 4, 2009 16.08 The Quincy Retirement Board is authorized to invest in State Street Global Advisors’ MSCI-EAFE Index Fund.  In accordance with PERAC’s generally accepted practice with regard to the selection of broad market index products, the Board did not issue a formal RFP for this search but objectively considered the investment and fee characteristics of several major index providers obtained through solicitation by its investment consultant.  The Board provided PERAC with a summary of this evaluation.  The SSgA fund compared favorably to that of the other respondents and will serve to complement the Board’s other SSgA index fund holdings.

June 16, 2009   (1) Notwithstanding the provisions of the Public Employee Retirement Administration Commission regulations, the Quincy Retirement Board may invest funds of the Quincy Retirement System (the “System”) in the fund known as TA Realty Associates Fund IX (consisting of Realty Associates Fund IX Corporation and TA Realty Associates Fund IX, L.P., collectively, the “Fund”), and while the assets of the System are so invested, the assets of the System shall be deemed to include, for purposes of applying the rules set forth in 840 CMR 16.00 et seq., 17.00 et seq., and 840 CMR 21.01, the System’s interest in the Fund but not any of the underlying assets of the Fund; provided that, at all times, either (A) less than twenty-five percent (25%) of each class of equity interest in the Fund is held by “benefit plan investors” (within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and the regulations promulgated thereunder), or (B) the Fund qualifies as a “venture capital operating company” and/or “real estate operating company” within the meaning of ERISA and the regulations promulgated thereunder.

(2) The limitations and restrictions of 840 CMR Section 19.01(6) shall not apply to the Fund for the two-year period commencing on the date of the Fund’s initial investment.

May 28, 2009 16.08 In accordance with Investment Guideline 99-2, the Quincy Retirement Board is making a modest modification to its passive fixed income mandate with State Street Global Advisors.  In order to maintain daily liquidity, the Board will transfer assets from the securities-lending version of SSgA’s Passive Bond Market Index Fund to the non securities-lending version.

March 4, 2008  
Notwithstanding the provisions of the Public Employee Retirement Administration Commission regulations, including 840 CMR 21.01(6), the City of Quincy Retirement Board may exercise its investment discretion to invest funds of the City of Quincy Retirement System (the “system”) in the shares of a real estate investment trust known as Hancock Timberland IX Inc. (the “Fund”), as contemplated by 840 CMR 19.01(6), and while funds of the System are invested in shares of the Fund, for purposes of applying the rules set forth in 840 CMR 16.00 et seq. and 17.00 et seq., investments of the System shall not be deemed to include any of the underlying assets of the Fund, but shall only include the shares of the Fund; provided that at all times the Fund qualifies as a “real estate operating company” within the meaning of the Employee Retirement Security Act of 1974, as amended (“ERISA”) and the regulations promulgated thereunder, or the assets of the Fund are otherwise not treated as “plan assets” of the System and that fees paid to the advisor of the Fund be exempt from 840 CMR 19.01(7)(a)(6) as they are consistent with industry practice.

January 2, 2008 19.00
Notwithstanding the provisions of Public Employee Retirement Administration Commission regulations, the Quincy Retirement Board may invest funds of the Quincy Retirement System (“System”) in the fund known as UBS (US) Trumbull Property Income Fund LP (“Fund”), and while the assets of the System are so invested, the assets of the System shall be deemed to include, for purposes of applying the rules set forth in 840 CMR 16.00 et seq. and 17.00 et seq., the System’s interest in the Fund but not any of the underlying assets of the Fund; provided that, at all times the Fund qualifies as a “venture capital operating company” within the meaning of the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

June 4, 2007

17.03

Notwithstanding the provisions of the Public Employee Retirement Administration Commission regulations, the Quincy Retirement Board may invest funds of the Retirement System (the “System”) in the fund known as the Institutional Retirement Trust (IRT) International Equity Trust (the “Fund”), and effective as of the date of the initial investment by the System of any of its assets in the Fund, while the assets of the System are so invested, the activities and investments of the Fund, directly or indirectly, shall be deemed to satisfy the prohibited transaction rules set forth in 840 CMR 16.00 et seq. and 840 CMR 17.03 to the extent such activities satisfy the prohibited transaction rules set forth in Section 406 of the U.S. Employee Retirement Income Security Act of 1974, as amended (“ERISA”), taking into account ERISA Section 408(b)(8) as well as other statutory exemptions under ERISA, and Prohibited Transaction Class Exemption 84-14, as amended, Prohibited Transaction Class Exemption 91-38, and other available class exemptions.

December 4, 2006

16.08

In accordance with Investment Guideline 99-2, the Quincy Retirement Board is authorized to modify its passive fixed income management mandate with State Street Global Advisors.  The Board’s current investment in SSgA’s Lehman Index strategy will be supplemented by an allocation to SSgA’s TIPS Index strategy.  This allocation will give the Board additional diversification within its fixed income portfolio as well as an inflation hedge.  The Board and its consultant have determined that, on the basis of both investment capability and fees, the SSgA fund is the best option by which to achieve this objective.

March 30, 2006

19.01(6)

Notwithstanding the provisions of Public Employee Retirement Administration Commission regulations, the Quincy Retirement Board may invest funds of the Quincy Retirement System (the “System”) in the fund known as AEW Partners V, L.P. (“the Fund”), and while the funds of the System are so invested, the assets of the System shall be deemed to include, for purposes of applying the rules set forth in 840 CMR 16.00 et seq. and 17.00 et seq.; the System’s interest in the Fund but not any of the underlying assets of the Fund; provided that, at all times, the Fund qualified as a “venture capital operating company” or “real estate operating company” within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the regulations promulgated thereunder.

The Limitations and restrictions of 840 CMR Section 19.01(6) shall not apply to the Fund for the two-year period commencing on the date of the Fund’s initial investment.

March 23, 2005

16.08

In accordance with Investment Guideline 99-2, the Quincy Retirement System is authorized to modify its large cap equity index mandate with RhumbLine Advisors.  Both the S&P 500 Index and the Russell 1000 Index track the universe of large capitalization stocks, and the performance of the two indices are very similar over time.  Investing concurrently in the Value and Growth sub-indices of the Russell 1000 will give the Board the flexibility to periodically re-balance between the two sub-indices and should increase returns over time.  Thus, the Board is transferring its assets from RhumbLine’s S&P 500 Fund to approximately equal-weighted investments in RhumbLine’s Russell 1000 Growth Fund and Russell 1000 Value Fund.  The Board has had a satisfactory relationship with RhumbLine since 1992.

November 25, 2003

16.08

In accordance with PERAC Investment Guideline 99-2, the Quincy Retirement Board is authorized to modify its existing fixed income mandate with State Street Global Advisors.  In transferring from SSGA’s Government/Credit index strategy to its Lehman Aggregate index strategy, the board will be adding exposure to mortgage-backed securities.  This added diversification will reduce the account’s duration or interest-rate sensitivity.