(a) In the event the board of trustees directs that outside investment managers be engaged to invest assets of the Tennessee consolidated retirement system, the board of trustees shall endeavor to use emerging investment managers to the greatest extent feasible within the bounds of financial and fiduciary prudence. Any such emerging investment manager must have at least five (5) years of professional investment experience in the asset class for which outside investment managers are being sought.
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Terms Used In Tennessee Code 8-37-113

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • board: means the board provided for in part 3 of this chapter. See Tennessee Code 8-34-101
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Fiduciary: A trustee, executor, or administrator.
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • Retirement: means withdrawal from membership with a retirement allowance granted under chapters 34-37 of this title. See Tennessee Code 8-34-101
  • State: means the state of Tennessee. See Tennessee Code 8-34-101
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) If the board of trustees directs that outside investment managers be engaged, the treasurer shall submit an annual statement to the general assembly regarding the use of emerging investment managers. The statement shall identify the emerging investment managers used by the board, the percentage of the system’s assets under the investment control of emerging investment managers, and the actions undertaken to increase the use of emerging investment managers, including encouraging other investment managers to use emerging investment managers as subcontractors when the opportunity arises. Inclusion of such statement within the state treasurer’s annual report to the general assembly shall satisfy this requirement.
(c) As used in this section:

(1) “Emerging investment manager” means a qualified investment adviser that manages an investment portfolio of at least ten million dollars ($10,000,000) but less than one hundred million dollars ($100,000,000) and is a minority-owned business;
(2) “Minority-owned business” means a business concern which is at least fifty-one percent (51%) owned by one (1) or more minority persons, or in the case of a corporation, at least fifty-one percent (51%) of the stock of which is owned by one (1) or more minority persons; and the management and daily business operations of which are controlled by one (1) or more of the minority individuals who own it; and
(3) “Minority person” means a person who is a citizen or lawful permanent resident of the United States and who is:

(A) African American; or
(B) Hispanic.
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