$3,000,000,000 of total assets under management when hired. If
the total assets under management exceeds $6,000,000,000,
existing investment managers shall be terminated within a
reasonable period of time.
(c) Performance-based fee accounts.--For performance-based
fee accounts, a manager must exceed both a hurdle rate and a
high water mark before the manager can earn the performance-
based fee.
(d) Transition to main fund.--Investment managers hired into
the program may continue in the program for a period of at least
three years, but not more than five years. If the investment
manager generates strong risk adjusted returns, the Investment
Office shall use best efforts to make a place in the main fund
for the investment manager. The Investment Office shall consider
things such as the investment manager's assets under management
and projected ability to continue generating strong risk
adjusted returns in the future.
ยง 8547. Administration.
(a) Authority to hire.--The board and the Investment Office
may hire and fund any investment manager meeting the objectives,
goals and criteria under this section.
(b) Prohibition of investment.--An investment may not be
made into an investment vehicle that primarily includes private
equity, private debt, venture capital or private real estate
instruments. An investment in an absolute return strategy shall
be subject to manager selection requirements within the absolute
return policy.
(c) Emerging manager portfolio manager.--The Investment
Office shall appoint an Emerging Manager Portfolio Manager who
shall be responsible for administering the program. The Emerging
Manager Portfolio Manager shall meet with managers that appear
to meet the objectives, goals and criteria of this section. The
Emerging Manager Portfolio Manager shall recommend qualified
investment managers for inclusion into the main fund and shall
further advise the Investment Office if termination of an
investment manager is recommended. An investment manager may be
terminated by the Emerging Manager Portfolio Manager, with
approval from the Investment Office, if the investment manager
is underperforming, not generating strong risk adjusted returns,
not meeting the criteria to move into the main fund, changes
investment processes, has personnel turnover or any other reason
which is deemed by the Investment Office to be in the best
interests of the system.
(d) Internal Review Committee.--An investment manager
considered for hiring into the program shall meet with the
Internal Review Committee. The Internal Review Committee shall
review each manager considered for inclusion in the program and
provide feedback to the Emerging Manager Portfolio Manager.
Investment Office approval shall be required to hire a manager
into the program, including the Emerging Manager Portfolio
Manager, the Emerging Manager Portfolio Manager's supervisor and
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