DATE: February 23, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
SUBJECT:
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*Consideration of Resolution 2016-10, a Resolution Granting Consent to Amend Investment Partnership Agreements with FIA Timber and BTG Pactual. (02-22-16 Pension Committee)
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning changes to limited partnership agreements with two investment managers of Pension fund assets.
Background
The City of Franklin Employees’ Pension Plan includes investments in certain timberland partnerships. Two of those partnerships have requested consent to changes in the partnership agreements. FIA Timber has requested two amendments to allow foreign investors into the partnership; it was originally planned for domestic investors only. BTG Pactual incurred a significant management change that, in their opinion, required notification of an assignment of management services.
Financial Impact
The legal counsel for the City Pension Plan has reviewed the documents, as has our financial advisory firm. They find no material impact on the City Pension Plan by giving consent to these amendments.
Recommendation
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Staff recommends approval of the Resolution, granting the Mayor the authority to acknowledge consent and sign the documents.