Investment Transparency Policy Codified by RI Lawmakers
Rhode Island
Treasurer Seth Magaziner applauded the General Assembly's passage of
legislation which will create a legal requirement to maintain the
"Transparent Treasury" investment policy he implemented just months
after taking office in 2015, which requires investment managers to publicly
report fees and performance.
"Transparency
is essential to good government," said Treasurer Magaziner. "As
Treasurer, I take the seriously my obligation to set a high standard of reporting
that publicly discloses investment performance and fees. I commend the General
Assembly for codifying my "Transparent Treasury" policy, which will
now be in place beyond my administration."
The legislation, which was introduced in the House by Representative Lauren H. Carson (District 75) and in the Senate by Senator James A. Seveney (District 11), establishes mandatory public disclosure of information regarding how the state's pension investments are managed and invested, and how such investments are performing, along with an overview of the state's pension investment strategies.
When
Treasurer Magaziner implemented his Transparent Treasury in 2015 it was widely
recognized as the most comprehensive transparency policy of any public pension
fund in the nation.
Former
Securities and Exchange Commission Chairman Arthur Levitt Jr. said Rhode
Island's transparency model "should be implemented by every public
fund" in the nation. Public pension funds across the United States have
since followed Rhode Island's lead in adopting similar policies.
Under
Treasurer Magaziner's leadership, Rhode Island Treasury introduced a new
investment information center at http://investments.treasury.ri.gov/, as well new data portal
that offers unprecedented access to state treasury information. Rhode Island
was also the first state in the country to require that new investments be
placed only with fund managers that publicly disclose performance, fees,
expenses and liquidity.
"Transparency
for the investments of our public pensions is good government," said
Representative Carson. "I commend Treasurer Magaziner for initiating the
pension portal for public access. It is my honor to sponsor and pass
legislation that codifies this practices for years to come under future
administrations."
The
legislation, which was passed in a special session of the state legislature
Tuesday evening, will head to Governor Raimondo's desk for signature.