Mainebiz

W W W. M A I N E B I Z . B I Z 11 M A R C H 7 , 2 0 1 6 saying at the time it helped her gain experience to launch her company. N O T E W O R T H Y N O R T H E R N & E A S T E R N Eastern Maine Medical Center in Bangor is now offering a new robot-assisted surgery treatment to Maine children who have incontinence caused by long-term urologic conditions. According to the hospital, the treatment is the fi rst of its kind in the state. The National Science Foundation awarded a $1,950,034 grant to the University of Maine in Orono to support Science, Technology, Engineering and Mathematics education in rural Maine. The grant will support 22 fellowships for recent STEM graduates or current STEM professionals to further their knowledge base and become certifi ed STEM teach- ers in rural, high-need Maine schools. Sappi North America, a producer and supplier of paper and packaging prod- ucts, announced the addition of McCoy Gift Card 28pt, manufactured from a paper line produced at the company's Somerset Mill. M onitoring and keeping transpar- ency over investments can be costly and diffi cult, especially when you look at state pension systems. e Pew Charitable Trusts recently published a public sector retire- ment report, "Making State Pension Investments More Transparent: Accountability Varies Widely and Can be Improved." It looks at performance reporting practices for investments by the 73 largest state-sponsored funds, and highlights fi ve steps for improving transparency. Fortunately, Maine falls within the majority of states — 63% — that break down pension fund investments net of fees, Ken Wills, a spokesman for Pew in Washington, D.C., wrote to Mainebiz in an email. He notes that reporting varies widely among states, and sometimes even within states. e report also fi nds that some reporting practices can make it diffi cult for taxpayers and benefi ciaries to know the actual cost of investments, especially if fund management fees are not disclosed. Pew began digging into state prac- tices when it noticed the California Public Employees Retirement System, known as CalPERS, which is the country's largest public retirement plan, decided to reveal management costs. Like most public retirement systems, CalPERS pays performance- based fees to external investment managers as part of their compen- sation. Some 37% of states do not disclose those fees when reporting annual returns. CalPERS initiated its disclosure plan last November, and reported performance fees to external investment partners of $700 million in fi scal 2015. While that's a whopping amount from the largest national plan, it makes sense for all states to account for such fees. e disclosure by California high- lighted the states that do not report or underreport manager fees and expenses, the Pew report noted, especially fees associated with alternative investments such as private equity, real estate and hedge funds. "…and [it] points to the need for greater disclosure in order to provide full transparency on invest- ment costs." Collectively, the 73 largest state-sponsored pension funds across 50 states studied by Pew total $2.9 trillion, so they have a large impact on the economy as a whole outside each state's borders. A look at the Maine Public Employees Retirement System, or MainePERS, fi nancial report for the year ended June 30, 2014, shows that of the total investments for the state employee and teacher plan of $10.2 billion, $500,898 went to brokers for securities purchased and almost $8.7 million went to accrued investment management fees. ere are similar breakdowns for the judicial, legislative and participating local district consolidated plans. ey are spelled out clearly within the liabili- ties section of the fi duciary net position statement, along with assets such as investments, receivables and collateral. at's not the case in other states, where Pew recommends: Adopting comprehensive fee- reporting standards Making investment policy state- ments transparent and accessible Disclosing bottom-line performance, both net and gross of fees Expanding reporting to include longer-term performance results Reporting results by asset class, net and gross of fees. B I Z M O N E Y B Y L O R I V A L I G R A The state pension quagmire: How much to disclose Open 4:30AM tO 1AM Or lAter. Drive 100 yards past baggage claim, look for our green sign. www.parknjetportland.com 747-5650 get your oil changed while yOu're AwAy Valet parking AirpOrt per day $10 e Wellspring Substance Abuse and Mental Health Services Board of Directors announces a search for a new Executive Director. Interested candidates should email a cover letter with resume or CV to Becky McMahan, Chair Wellspring Search Committee, beckruth@gmail.com. Excellent salary and benefit package. Gross of fees Net of fees Multiple State reporting of pension investments S O U R C E S : The Pew Charitable Trusts

• Cover