Policy Order O-3

WHEREAS: The Cambridge Retirement System makes investments in accordance with their fiduciary duty; and

WHEREAS: The Cambridge City Council offers its appreciation to the board and staff of the Cambridge Retirement System as CRS diligently labors to ensure that those who work to keep our city running, growing, and thriving are able to retire with dignity at the end of their public service; and

WHEREAS: The Cambridge City Council has been made aware of a report that focuses on the potential of excess fees charged by UBS Realty to investors; and

WHEREAS: CRS is a limited partner in the UBS Trumbull Property Fund (UBS-TPF); and

WHEREAS: An analysis of some recent filings from UBS-TPF owned properties with county tax assessors reveals disparities in some valuations provided to investors; and

WHEREAS: Research into three different properties in UBS-TPF reveals that values which were appealed as too high already averaged 40% less than values reported to  limited partners as of September 2013; and

WHEREAS: If such a disparity were applied to the $51 million CRS has invested with UBS, CRS could potentially have been significantly overcharged on fees; and

WHEREAS: If correct, a 40% overvaluation would mean that in 2014 $215,528.00 of the fees charged to CRS may have been in error; now therefore be it

ORDERED: That the City Manager be and hereby is requested to work with the Cambridge Retirement system to examine these claims and report back to the City Council with any relevant findings.