(a) Public retirement systems shall:
(1) report direct and indirect fees and commissions:
- (A) in the fiscal year they are incurred;
- (B) by asset class;
- (C) in a supplemental schedule as part of the system's annual financial report; and
- (2) identify amounts netted from returns separately from those paid from the trust.
- (b) Investment services provided to the system shall be reported in a supplemental schedule contained in the notes to the financial statements that are part of a public retirement system's annual financial report.
- (c) A retirement system shall report expenses incurred for investment services by type of service provided, even if multiple investment services are provided by a single firm. Those expenses should not be reported by asset class.
(d) The asset classes are:
- (1) Cash;
- (2) Public Equity;
- (3) Fixed Income;
- (4) Real Assets;
- (5) Alternative/Other.
- (e) The Board hereby adopts by reference the 2020 Asset Class Categorization Guide (2020 ACC Guide) to assist in categorizing items by asset class.
- (f) The Asset Class Categorization Guide is available to all public retirement systems. A public retirement system may obtain the most current version of the Asset Class Categorization Guide from the offices of the State Pension Review Board and from its website at http://www.prb.texas.gov.
- (g) For an investment product containing investments in more than one asset class, a public retirement system shall report fees according to the corresponding asset class.
- (h) For a fund of funds, reported fees must include the top-layer management fees charged by the fund-of-fund manager and the fees charged by all subsidiary fund managers, and all profit share, reported as a single amount.
- (i) A public retirement system must list the types of investment included in the "Alternative/Other" asset class as described in the 2020 ACC Guide.
Source Note:The provisions of this §609.111 adopted to be effective March 15, 2020, 45 TexReg 1864.