Utah Administrative Code
Topic - Money Management Council
Title R628 - Administration
Rule R628-2 - Investment of Funds of Public Education Foundations Established Under Section 53E-3-403 or Funds Acquired by Gift, Devise, or Bequest
Section R628-2-4 - Investment of Funds
Universal Citation: UT Admin Code R 628-2-4
Current through Bulletin 2024-06, March 15, 2024
A . Funds within the scope of this rule, except funds described in Section R628-2-3, may be invested in any of the following:
1. in any
deposit or investment authorized by Section 51-7-11 or 51-7-5;
2. in professionally managed pooled or
commingled investment funds registered with the Securities and Exchange
Commission with a Morning star rating of "3" or higher.
3. in equity securities, including common and
convertible preferred stock and convertible bonds, issued by corporations
listed on a major securities exchange or in the NASDAQ, in accordance with the
following criteria applied, on a total market basis, at the time of investment:
a) no more than 20% of all funds may be
invested in securities listed in the NASDAQ;
b) no more than 5% of all funds may be
invested in the securities of any one corporate issuer;
c) no more than 25% of all funds may be
invested in a particular industry;
d) no more than 5% of all funds may be
invested in securities of corporations that have been in continuous operation
for less than three years;
e) no
more than 5% of the outstanding voting securities of any one corporation may be
held; and
f) at least 50% of the
corporations in which equity investments are made under R628-2-4.(A)(3) must
appear on the Standard and Poor's 500 Composite Stock Price Index and the
Wilshire 5000;
4. in
fixed - income securities, including bonds, notes, mortgage securities and zero
coupon securities, issued by corporations rated "investment grade" or higher by
Moody's Investors Service, Inc. or by Standard and Poor's Corporation in
accordance with the following criteria applied, on a total market basis, at the
time of investment:
a) no more than 5% of all
funds may be invested in the securities of any one corporate issuer;
b) no more than 25% of all funds may be
invested in a particular industry;
c) the dollar - weighted average maturity of
fixed - income securities acquired under R628-2-4(A)(4) may not exceed ten
years; and
5. in fixed -
income securities issued by agencies of the United States and United States
government-sponsored organizations, including mortgage - backed pass - through
certificates, mortgage -backed bonds and collateralized mortgage obligations
(CMO's).
B. Investments made under this rule shall observe the following investment percentages on a total market basis as of the most recent quarterly review, for specified subsections;
1. no more than 75% of all funds
may be invested in equity securities (Subsection R628-2-4(A)(3)
investments).
2. no more than 5% of
all funds may be invested in collateralized mortgage obligations (CMO's)
(Subsection R628-2-4(A)(5) investments).
C. The selection criteria established in Section 51-7-14 shall apply to investments permitted by this rule.
D. Certified investment advisers may be employed to assist in the investment of funds under this rule. Compensation to certified investment advisers may be provided from earnings generated by the funds' investments.
Disclaimer: These regulations may not be the most recent version. Utah 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.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.