Pine Belt Progressive

This list includes every organization I have been able to locate that is directly connected to the Alabama Prepaid Affordable College Tuition Fund. I’m not attempting to list all the responsibilities of each organization here. Just explaining the relationships between them.

The Alabama Legislature

Creates the PACT program by passing Alabama Code Section 16-33C (pdf) into law into 1989. The law has been amended several times since then, notably in 2001.

The PACT Board of Trustees

Established by the  statute to oversee PACT. Chaired by the State Treasurer, who has responsibility for the day-to-day administration of the fund. The board selects the custodian, records administrator, advisor, and managers listed below by advertising requests for proposals and following the state process bid/proposal process.

The Custodian

Bank of New York Mellon. Holds the fund’s assets and maintains transaction records of trades.

The Records Administrator

HDI Solutions of Auburn, AL. Maintains account information records of transactions between contract holders and the fund.

The Investment Advisor

Callan Associates. Assists the Board of Trustees in the selection of investment managers and provides investment guidance.

The Investment Managers (Investment Policy pdf, appendix B, beginning on p. 13.)

Rhumbline – Russell 1000

CS McKee – Large Cap Value Equity

Intech – Large Cap Growth Equity

Earnest Partners – Small Cap Value Equity

Turner Investment Partners – Small Cap Growth Equity

Acadian Asset Management – International Equity

Principal Global – International Equity

Western Asset Management – Core Plus Fixed Income

Sterne Agee – Passive Fixed Income ( listed in the Q&A pdf on the Official PACT web site, but not listed in the investment policy. This was first noted by Havealittletalk).

Tenth manager? I’ve  seen at least one reference to ten managers other than the one Havealittletalk notes, and I will note it when I locate it again. I am not sure whether this is an error, or whether we should be asking about a tenth manager.

There are also:

State Treasury staff who work on PACT

An Actuary

An Auditing Firm

Board of Examiners’ Reports

Next

This is only a skeleton. I have a lot of information that I’ve picked up from public documents — pages and pages of links — to organize.

My next step is to put together a timeline from 1995-present. Things you will see on that timeline:

1. Amendments to the law that created PACT, and the passage of other laws that might be relevant.

2. Hirings/Firings, including the ones havealittletalk notes, and more that I have located.

3. Activities of the managers and custodian, to the extent they can be ascertained, during that time, that might have some bearing on the situation.

4. Documented statements from  public officials.

5. Any relevant information I can glean from these documents (all pdfs), which I suggest you archive by using the File/Save Page As command.

2004 Financial Statements

2005 Financial Statements

2006 Financial Statements and Actuarial Report

2007 Financial Statements and Actuarial Report

2008 Financial Statements and Actuarial Report

I have a few other odds and ends, too. I have piled up quite a bit of information from fragments here and there. Organizing, archiving, and getting it into readable format it is slow going.

I believe I can add quite a bit to our knowledge of some of the issues Havealittletalk is continuing to bring to light, and to our knowledge of some of these private firms.

I am following the coverage of  other news and the development of Save Alabama PACT with great interest. I am pressed for time this week, but I will continue to blog this at Correntewire, to update my PACT Project page, and to offer comments as I am able to do so.

Cross-Posted at Left in Alabama