DATE: January 12, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator
SUBJECT:
title
Update on Transition of Pension Investments and Administration to Tennessee Consolidated Retirement System (TCRS).
body
Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the status of the outsourcing of investment and administrative responsibilities to the TCRS program.
Background
Upon adoption by BOMA of the TCRS investment resolution, City staff began the process of liquidating existing assets supervised by selected money managers. During the month of November, orders were placed with managers to sell the assets beginning December 13. As stocks and bonds were liquidated, wire transfers from the custodial bank to the State Treasury Department were placed. Between December 20 and December 30, sixty million dollars were moved into the Tennessee Treasury Managed Fund (the name of the investment fund managed by the State Treasurer for TCRS.) On Friday, January 6th, an additional twelve million was transferred to the State.
The urgency of the transfers was to limit incurring any additional money manager fees after the formal agreement with TCRS was in place. The extra advantage of moving so quickly was to close off any reporting on funds and managers at yearend, so those terminated accounts would not complicate the financial reporting for calendar year 2017. [Yearend cutoffs are particular favorable for clarity in the reporting, especially on the complicated reporting required for pension assets.]
Additional liquidations will occur at the end of the March quarter. There will also be additional assets (private equity positions and timber investments) that will require more time before full liquidation canl take place.
Overall, staff believes that the biggest impacts from moving to TCRS will be felt immediately...
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