PERAC Approval Date: February 6, 2012
Investment/Supplemental Regulation
Westfield Retirement Board Supplementary Regulation Invesco Charter Fund
“In relation to the investment of the Westfield Retirement System (“System”) in Invesco Charter Fund (“Fund”), the following will apply. The Fund is a series portfolio of AIM Equity Funds (“Invesco Equity Funds” or the “Trust”), a Delaware statutory trust registered under the Investment Company Act of 1940, as amended, as an open-ended series management investment company. The investment objective of the Fund is long-term growth of capital.
840 CMR 1.02(1), 840 CMR 16.03(2) and 840 CMR 17.04(10) shall not apply in the event that the portfolio includes holdings subject to the restrictions regarding South Africa, Northern Ireland and tobacco contained in Chapter 32, Section 23 of the General Laws. The System is responsible for taking action to address any such circumstances.
840 CMR 16.02(5) shall not apply to Invesco Advisers, Inc. (“Manager”) or the Fund provided that the Manager manages the Fund consistent with the terms of the Fund’s current registration statement. This is because the System will not purchase shares of the Fund pursuant to an Investment Management Agreement. Instead, the System will sign an account opening form with the transfer agent of the Fund pursuant to which the System agrees that the purchase of shares are subject to the terms and conditions of the prospectus as in effect from time to time.
840 CMR 16.05 shall not apply provided that the Manager or the sub-advisor complies with the provisions of the Fund’s Statement of Additional Information. The Fund’s Statement of Additional Information discloses that, primary consideration in selecting Brokers to execute portfolio transactions for a Fund is to obtain best execution. In selecting a Broker to execute a portfolio transaction in equity securities for a Fund, Manager considers the full range and quality of a Broker’s services, including the value of research and/or brokerage services provided, execution capability, commission rate, and willingness to commit capital, anonymity and responsiveness. Manager’s primary consideration when selecting a Broker to execute a portfolio transaction in fixed income securities for a Fund is the Broker’s ability to deliver or sell the relevant fixed income securities; however, Manager will also consider the various factors listed above. In each case, the determinative factor is not the lowest commission or spread available but whether the transaction represents the best qualitative execution for the Fund. Manager will not select Brokers based upon their promotion or sale of Fund shares.
840 CMR 17.03(1)(b) and (c) shall not apply as the Fund is an open ended series management investment company.
840 CMR 17.04(3)(b) shall not apply as the Fund is an open ended series management investment company.
840 CMR 17.04(1) shall not apply to the extent an exemption from applicable regulation has been granted hereunder.
Notwithstanding the provisions of 840 CMR 21.01(1), purchases of securities by partial payment of their cost (purchases on margin) shall be permitted to obtain such short-term credits as may be necessary for the clearance of purchases and sales of the portfolio.
Notwithstanding the provisions of 840 CMR 21.01(2), the Fund may engage in short sales provided that the aggregate availability of all securities sold short does not exceed 10% of the Fund’s total assets and provided, further, that this limitation shall not apply to short sales against the box.
Notwithstanding the provisions of 840 CMR 21.01(3), use of future contracts shall be permitted for risk management purposes.
Notwithstanding the provisions of 840 CMR 21.01(4), use of call options shall be permitted for risk management purposes.
Notwithstanding the provisions of 840 CMR 21.01(5), use of options shall be permitted for risk management purposes.
Notwithstanding the provisions of 840 CMR 21.01(6), the Fund may invest up to 15% of its assets in illiquid securities, which may include securities restricted under federal securities laws.
Notwithstanding the provisions of 840 CMR 21.01(8), use of collateral loans shall be permitted as the Fund’s registration statement expressly permits the Fund to purchase debt obligations, enter into repurchase agreements, loan its assets to broker-dealers or institutional investors or invest in loans, including assignments and participation interests. Notwithstanding the foregoing, the Fund does not have a current intention of making such investments.
PERAC Approval Date: December 27, 2011
Investment/Supplemental Regulation
In relation to the investment of the Westfield Retirement System (“System”) in Columbia U.S. Contrarian Core Equity Private Fund, LLC (“Fund”), the following will apply. The investment objective of the Fund is to seek total return, consisting of long-term capital appreciation and current income. The Fund will invest its net assets primarily in common stocks.
840 CMR 21.01(3): Future contracts will be allowed to the extent that they will be used for hedging purposes or as a substitute for actual securities in cases where the derivative instrument is a more efficient means of gaining exposure to the underlying securities.
840 CMR 21.01(6): Restricted stock will be allowed notwithstanding the limits set forth herein to the extent that Columbia Management Investment Advisers, LLC (the “Manager”) anticipates that purchases for the Fund of stock with restrictions on transfer will be rare but may occur from time to time in certain circumstances such as the purchase of an initial public offering on a foreign market where the securities must be held for a certain time period.
840 CMR 16.07(2): This section shall be deemed to be met provided that a representative of the Fund meets annually with the Board.
840 CMR 16.07(4): This section, which requires notification of key personnel staffing changes, shall be deemed to be met to the extent that the Manager or its delegate will promptly notify the System with respect to personnel changes involving Guy Pope, the portfolio manager of the Fund.
840 CMR 17.02 and 17.03: The Manager shall be deemed to have met the requirements set forth herein, as the Manager (a) is an SEC-registered investment adviser subject to the fiduciary obligations and responsibilities imposed by the Investment Advisers Act of 1940, as amended (the “Advisers Act”) and (b) complies with a Code of Ethics and Code of Conduct that is at least as stringent as is required by the Investment Advisers Act of 1940, as amended.
840 CMR 17.04(1)-(8)(a) and (9)-(10): The requirements set forth herein shall only apply to the extent that these standards are not addressed by the Advisers Act, as the Manager is an SEC-registered investment adviser subject to the fiduciary obligations and responsibilities imposed by the Advisers Act with respect to the Fund.
PERAC Approval Date: January 11, 2011
Investment/Supplemental Regulation
Regulation Number 19.01(8): Notwithstanding the provisions of 840 CMR 19.01(8), the Westfield Retirement Board is authorized to invest up to 7% of its portfolio in private equity.
March 29, 2010 16.04 The Westfield Retirement Board is granted an exemption from the regulatory requirement to employ a custodial bank. The Board has determined that it will no longer be cost-effective or necessary to have a custodial bank once it completes its transition out of separately-managed investment accounts. All separate accounts are expected to be liquidated by May 31, 2010. This authorization takes into account the fact that the Board has a highly experienced Board Administrator whom it deems capable of handling any remaining responsibilities pertaining to cash flows and record keeping.
PERAC Approval Date: March 26, 2002
Investment/Supplemental Regulation
Regulation Number 16.08: In accordance with Investment Guideline 99-2, the Westfield Retirement Board is authorized to modify its small cap value mandate with Loomis, Sayles & Company. The Small Company Value Fund in which the Board is currently invested is being closed and liquidated by the company. The Board's assets invested in that fund will be transferred into the Loomis Sayles Small Cap Value Fund, which has the same investment strategy, is managed by the same team, and has the same expenses as the prior fund.
PERAC Approval Date: April 7, 2000
Investment/Supplemental Regulation
Regulation Number 16.08: In accordance with PERAC Investment Guideline 99-2, the Westfield Retirement Board may invest in the Loomis Sayles Investment Trust Small Company Value Fund. Investment in this commingled fund represents a modest modification to the System’s existing investment mandate with Loomis Sayles, which had been in the form of a small cap value separate account. The commingled fund has the identical investment strategy as the separate account but will serve to reduce custodial and administrative expenses for the System.
In accordance with PERAC Investment Guideline 99-2, the Westfield Retirement Board may invest in the Loomis Sayles Investment Trust Small Company Growth Fund. The System has a long and satisfactory relationship with Loomis Sayles as its small cap equity manager. Proceeds to begin this investment will come from the System’s small cap value account with Loomis Sayles.