20 NCAC 01G .0106. CONSOLIDATION OF EXISTING INVESTMENTS OF PARTICIPANTS

(a)  Existing portfolios of eligible fixed income securities of the new participants shall be pooled into a fixed income investment fund and each trust fund shall receive ownership units in proportion to the total of the book value of the investment securities pooled adjusted for accrued interest receivable and premiums and discounts to be amortized for the period ending on the day of the pooling.  Eligible securities are securities which are permitted by G.S. 147‑69.1(c) and 69.2(b)(2) through (5) and rated by a national rating agency "A" or better, as provided by law.  The State Treasurer shall designate, on the day of consolidation, which securities shall be placed in which investment fund based on the investment objectives of each investment fund.

(b)  Existing portfolios of eligible equity securities shall be pooled into the Equity Investment Fund and each trust fund shall receive ownership units in proportion to the total of the market value of the investment securities adjusted for accrued but unpaid dividends.

(c)  At the time at which the Equity Investment Fund is actually established, each eligible retirement system shall purchase, in accordance with 20 NCAC 1G .0405, sufficient new or additional units of the Equity Investment Fund so that all eligible retirement systems will have the same proportions of its assets in equity securities as is required by 20 NCAC 1G .0401(a).

(d)  The investment funds shall be established at the opening of business July 1, 1979.

 

History Note:        Filed as an Emergency Regulation Eff. July 1, 1979, for a

Period of 120 Days to Expire on October 29, 1979;

Statutory Authority G.S. 147‑69.3;

Made Permanent Eff. October 29, 1979.