16.642 Board of trustee funds -- Investments -- Registration of securities -- Investment committee of funds -- Cap on amount of assets managed by any one investment manager.

Loading PDF...

16.642 Board of trustee funds -- Investments -- Registration of securities -- Investment committee of funds -- Cap on amount of assets managed by any one investment manager. (1) The board shall be the trustee of the several funds created by KRS 16.505 to 16.652 and shall have full power to invest and reinvest such funds, subject to the limitations that no investments shall be made except upon the exercise of bona fide discretion, in securities which, at the time of making the investment, are, by law, permitted for the investment of funds by fiduciaries in this state, except that the board may, at its discretion, purchase common stock in corporations that do not have a record of paying dividends to their stockholders. Subject to such limitations, the board shall have full power to hold, purchase, sell, assign, transfer or dispose of any of the securities or investments in which any of the funds created herein have been invested, as well as of the proceeds of such investments and any moneys belonging to such funds. (2) All securities acquired under authority of KRS 16.505 to 16.652 shall be registered in the name "Kentucky Retirement Systems" or nominee name as provided by KRS 286.3-225, and every change in registration, by reason of sale or assignment of such securities shall be accomplished pursuant to written policies adopted by the board. (3) The board, in keeping with its responsibility as trustee and wherever feasible, shall give priority to the investment of funds in obligations calculated to improve the industrial development and enhance the economic welfare of the Commonwealth. (4) The investment committee established pursuant to KRS 61.650 shall serve as the investment committee of the funds established by KRS 16.505 to 16.652. (5) Based upon market value at the time of purchase, the board shall limit the amount of assets managed by any one (1) active or passive investment manager to fifteen percent (15%) of the assets in the pension and insurance funds. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 127, sec. 3, effective July 15, 2010; and ch. 173, sec. 2, effective July 15, 2010. -- Amended 2004 Ky. Acts ch. 36, sec. 5, effective July 13, 2004. -- Amended 2003 Ky. Acts ch. 169, sec. 2, effective March 31, 2003. - - Amended 1988 Ky. Acts ch. 349, sec. 4, effective July 15, 1988. -- Amended 1976 Ky. Acts ch. 321, sec. 40. -- Amended 1974 Ky. Acts ch. 128, sec. 10, effective March 26, 1974. -- Amended 1972 Ky. Acts ch. 116, sec. 16. -- Created 1966 Ky. Acts ch. 33, sec. 7. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 127 and 173, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (7/12/2006). 2006 Ky. Acts ch. 247 instructs the Reviser of Statutes to adjust KRS references throughout the statutes to conform with the 2006 renumbering of the Financial Services Code, KRS Chapter 286. Such an adjustment has been made in this statute.