La. Admin. Code tit. 71 § I-113

Current through Register Vol. 50, No. 12, December 20, 2024

Section I-113 - Measurement of Performance of Investments; Evaluation of the LEQTF

A. The investment performance of the assets shall be measured quarterly on the calendar quarter by a professional and independent organization which is in the business of performing such measurements and which is not affiliated with any firm or entity which advises the state treasurer on the investment of the assets or which has any responsibility for managing any portion of the assets. All measurement shall be in compliance with the Association for Investment Management and Research performance presentation standards.

B. Annual Evaluation of Performance of the LEQTF. The state treasurer shall cause an evaluation of the LEQTF at least annually. This evaluation shall cover all aspects of the investment of the assets, including an evaluation of the investment results of the total fund, results of each class of asset, results of any and each investment manager, as well as of adherence to applicable law, rules, and guidelines. This evaluation shall be made in accordance with sound review criteria and any benchmarks established by the state treasurer for evaluating investment performance. Specific investment performance benchmarks for the LEQTF shall include, but not be limited to, the following (in addition to any other provision required by law or rule).

1. Common Stocks. An annualized total return equal to or greater than the Standard and Poor's 500 Index net of investment management fees, custodial fees, and transaction costs.

2. Bonds. An annualized total return equal to or greater than the Lehman Brothers Government Bond Index net of investment management fees, custodial fees, and transaction costs.

La. Admin. Code tit. 71, § I-113

Promulgated by the Department of the Treasury, Office of the Treasurer, LR 21:475 (May 1995).

AUTHORITY NOTE: Promulgated in accordance with R.S. 17:3801(A)(1).