Current through Register Vol. 50, No. 3, March 20, 2024
A. The state treasurer, by Section 2(a)(5) of
Act 67 of the 1986 Regular Session of the Legislature ("Act 67"), as amended by
Act 136 of the 1994 Third Extraordinary Session, is authorized to invest as
much as 35 percent of the market value of the assets in certain stocks ("equity
securities"), and to promulgate rules governing such investment. The following
rules shall apply to the investment of the assets in equity securities.
1. The prudent investor standard or rule
shall govern all investments of the assets. The prudent investor standard shall
be the standard of care against which actual investment decisions with regard
to the assets made by any person or entity investing all or any portion of the
assets are judged.
2.
a. The state treasurer shall allocate assets
to be invested in equity securities in an amount calculated on the last day of
each fiscal year when added to any assets already invested in equity securities
that fall within the range of the market value of the assets for the applicable
fiscal year as set out in the following table.
|
FY '95 - '96
|
5 percent to 7 percent
|
|
FY '96 - '97
|
10 percent to 14 percent
|
|
FY '97 - '98
|
15 percent to 21 percent
|
|
FY '98 - '99
|
20 percent to 28 percent
|
|
FY '99 - '00 and after
|
25 percent to 35 percent
|
b.
For the purposes of determining the dollar amount of assets which must be
invested in equity securities, the market value of the assets shall be the
market value on the last day of the fiscal year immediately prior to the fiscal
year in which the assets are to be allocated to be invested in equity
securities.
3. The
assets invested in equity securities shall not exceed an amount equal to 5
percent of the ownership of any entity or company.
4. No individual investment manager managing
a portfolio of equity securities which form a part of the assets shall be
permitted to concentrate more than 25 percent of the market value of that
portfolio in any single industry.
5. All investment managers managing any
portfolio which is part of the assets are prohibited from using the assets to
engage in any of the following activities:
a.
the purchase of stock warrants;
b.
the purchase of any stock on margin;
c. the short sale of any security;
d. the purchase of any direct interest in
oil, gas, or other mineral exploration program;
e. private or direct placement of any
kind;
f. direct ownership of real
estate or real estate investment trusts;
g. direct or indirect ownership of
collectibles (including coins, stamps, or art);
h. direct investment in the equity securities
of the LEQTF custodian bank(s), investment advisor(s), or the parent company of
any of them;
i. other investments
which may be restricted or which may not be authorized by applicable law or
rule from time to time.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
17:3801(A)(5).
