Legislation related to ERS Investments

Sudan

The 80th Legislature passed SB 247 in 2007 to require ERS to divest of certain companies doing business in Sudan and directed the State Comptroller of Public Accounts to prepare a list of companies to be targeted effective Jan. 1, 2008. ERS investment staff has scrutinized the list provided by the Texas Treasury Safekeeping Trust on behalf of the Comptroller’s office and reported ERS holdings in one company, out of more than two dozen that have been identified, with a value of approximately $3.5 million.

• Texas Treasury Safekeeping Trust Procedure  
• Revised list of scrutinized companies pursuant to Texas Sudan Divestment Act 
• ERS Response Letter 

Emerging Managers

Legislation passed by the 81st Legislature states that the ERS Board of Trustees shall make a good faith effort to award contracts to acquire services from qualified emerging managers.  The legislation defines an emerging manager as a private professional investment manager that manages assets of not more than $2 billion.  In financial services, these include consulting, investment advising, brokerage services, hedge fund management, private equity management, and real estate investment.  ERS has established an emerging manager program and continues to focus on identifying, developing and hiring emerging managers.  Currently, ERS has the following emerging manager relationships:

• Fountain Capital Management / Fixed Income
• Leading Edge Investment Advisors / Public Equity Manager of Emerging Managers
• Legato Capital Management / Public Equity Manager of Emerging Managers
• Credit Suisse Group / Private Equity Manager of Emerging Managers
• Morgan Creek Capital Management / Private Real Estate Manager of Emerging Managers