Filed under: Economy, Politics, Progressive | Tags: Alabama, Alabama PACT, Alabama Prepaid Affordable Tuition Fund, PACT
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.
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
2 Comments so far
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Thanks! This is a great index to the core issues and documents and will save me hunting through my stacks.
Ever get the feeling we’re doing the virtual equivalent of shoveling manure?
Comment by havealittletalk 31 March, 2009 @ 8:47 amYou’re welcome.
That’s exactly what it feels like.
Comment by Gene'O 31 March, 2009 @ 9:27 pm