Louisiana Administrative Code
Title 71 - TREASURY-PUBLIC FUNDS
Part I - Public Funds Investments
Chapter 1 - Education Quality Trust Fund Investment Procedures
Section I-109 - Investments of the Assets in Bonds
Universal Citation: LA Admin Code I-109
Current through Register Vol. 50, No. 9, September 20, 2024
A. The state treasurer, by Section 2(a)(4) of Act 67, is authorized to invest the assets in marketable fixed income securities ("bonds"). The following rules shall apply to the investment of the assets in bonds.
1. Assets shall be invested in bonds which
have been selected after consideration of the total return on such investment,
including interest income and capital appreciation/loss.
2. Investment of the assets in bonds should
be done so that the contents of each portfolio under management is diversified
by maturity, security, sector, and credit quality.
3. Each portfolio of bonds forming a part of
the assets may be actively managed.
4. The total portfolio of bonds which form a
portion of the assets shall not contain a concentration of more than 10 percent
of any issuer's securities (valued at cost of bonds compared to market value of
total portfolio), except securities which are direct obligations of the U.S.
Treasury or any U.S. agency.
5. All
investment managers managing any portfolio of bonds which forms a part of the
assets are restricted from using the assets to engage in any of the following
activities:
a. the purchase of bonds on
margin;
b. the short sale of any
bond;
c. private or direct
placement of any kind;
d. the
purchase of debt securities of the custodian bank(s), investment manager(s), or
their parent or any subsidiaries, or with any entity which is a part to a
contractual relationship with the state treasurer or the LEQTF;
e. direct loans or extension of lines of
credit;
f. the purchase of foreign
bonds;
g. direct purchases of
single family or commercial mortgages;
h. the purchase of collateralized mortgage
obligation derivatives;
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. 17:3803(B)(1)(c)(b)(d).
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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