| (a) Public retirement systems shall:
(1) report direct and indirect fees and commissions:
(A) in the fiscal year they are incurred;
(B) by asset class;
(C) in a supplemental schedule as part of the system's
annual financial report; and
(2) identify amounts netted from returns separately
from those paid from the trust.
(b) Investment services provided to the system shall
be reported in a supplemental schedule contained in the notes to the
financial statements that are part of a public retirement system's
annual financial report.
(c) A retirement system shall report expenses incurred
for investment services by type of service provided, even if multiple
investment services are provided by a single firm. Those expenses
should not be reported by asset class.
(d) The asset classes are:
(1) Cash;
(2) Public Equity;
(3) Fixed Income;
(4) Real Assets;
(5) Alternative/Other.
(e) The Board hereby adopts by reference the 2020 Asset
Class Categorization Guide (2020 ACC Guide) to assist in categorizing
items by asset class.
(f) The Asset Class Categorization Guide is available
to all public retirement systems. A public retirement system may obtain
the most current version of the Asset Class Categorization Guide from
the offices of the State Pension Review Board and from its website
at http://www.prb.texas.gov.
(g) For an investment product containing investments
in more than one asset class, a public retirement system shall report
fees according to the corresponding asset class.
(h) For a fund of funds, reported fees must include
the top-layer management fees charged by the fund-of-fund manager
and the fees charged by all subsidiary fund managers, and all profit
share, reported as a single amount.
(i) A public retirement system must list the types
of investment included in the "Alternative/Other" asset class as described
in the 2020 ACC Guide.
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