38-719

38-719. Investment of monies;
limitations

A. Investment management may invest and reinvest the monies in its accounts and may
hold, purchase, sell, assign, transfer and dispose of any of the securities and
investments in which any of its account monies are invested. Investment management shall
redeposit the proceeds of sales, maturities and calls in the ASRS depository.

B. Investment management shall discharge the duties of the position with the care,
skill, prudence and diligence under the circumstances then prevailing that a prudent
person acting in a like capacity and familiar with the same matters would use in the
conduct of an enterprise of a like character and with like aims as that of ASRS, except
that:

1. No more than eighty per cent of ASRS assets may be invested at any given time in
corporate stocks or equity equivalents, based on cost value of the stocks or equity
equivalents irrespective of capital appreciation.

2. No more than five per cent of ASRS assets may be invested in securities issued
by any one institution, agency or corporation, other than securities issued as direct
obligations of or fully guaranteed by the United States government or mortgage backed
securities and agency debentures issued by federal agencies.

3. No more than five per cent of the voting stock of any one corporation may be
owned.

4. No more than thirty per cent of ASRS assets may be invested in foreign
securities, and those investments shall be made only by investment managers with
demonstrated expertise in those investments.

5. No more than ten per cent of ASRS assets may be invested in bonds or other
evidences of indebtedness of those multinational development banks in which the United
States is a member nation, including the international bank for reconstruction and
development, the African development bank, the Asian development bank and the
Inter-American development bank.

6. No more than one per cent of ASRS assets may be invested in economic development
projects authorized as eligible for investment by the department of commerce.

C. Notwithstanding any other law, investment management shall not be required to
invest in any type of investment that is dictated or required by any entity of the
federal government and that is intended to fund economic development projects, public
works or social programs but may consider such economically targeted investments pursuant
to its fiduciary responsibility.