38-718. Investment management; qualifications;
term; removal; general powers and duties; confidentiality of
proprietary information
A. The board shall appoint investment management. Investment management shall
have:
1. The highest professional and fiduciary recommendations.
2. Not less than three years' experience at handling institutional investments of
at least two hundred fifty million dollars. This paragraph is satisfied if investment
management, the individual retained by investment management or individual employees
within a firm meet this requirement.
3. Had responsibility for investment decision making as an insurance company
investment fund, an investment division of a bank, a mutual fund, an investment
organization, a pension fund or an investment adviser who is designated as a chartered
financial analyst by the association for investment management and research.
B. A bank serving as investment management does not have a conflict of interest
because it is also a depository in which ASRS monies are deposited.
C. The board shall appoint the investment management for a term of one year and may
appoint the investment management to succeeding terms. The board may remove investment
management for not complying with this article or for failure to comply with or adhere to
the board's investment goals, objectives or policies.
D. Investment management:
1. Has the sole authority to invest and reinvest in the name of ASRS all ASRS
monies assigned to investment management and shall purchase and sell in the name of ASRS
any of the securities and investments held by ASRS under this article.
2. Is responsible for making and executing all investment decisions.
3. Shall be multiple.
E. Investment management shall not directly or indirectly:
1. Have an interest in making an investment or purchasing annuities from a private
insurer or in the gains or profits accruing from an investment or annuities.
2. As investment management or as agent or partner of others borrow monies, funds
or deposits of ASRS or use monies, funds or deposits in any manner except as directed
under this article.
3. Be an endorser, surety or obligor on investments made under this article.
F. Subject to the limitations in section 38-719, the board may authorize the
director to make investments that are designated by the board and that do not exceed
fifty per cent of the assets of the investment account measured at cost.
G. For the purpose of exercising the investment responsibilities prescribed in this
section, the board may enter into contracts to receive market data and other market
information from securities, commodities, options and monetary exchanges. These
contracts may be interpreted and enforced under the laws of a jurisdiction other than
this state and are not subject to section 35-214 or 38-511 or title 41, chapter 23.
H. Proprietary commercial information that is provided to the board, director,
investment management, employees of the director and attorneys of the board or the
director relating to investments in which investment management has invested or has
considered for investment is confidential and not a public record if the information is
information that customarily would not be released to the public by the person or entity
from whom the information was obtained.
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