Rhode Island Treasurer Seth Magaziner today 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.
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