Okla. Stat. tit. 70, § 70-3954

committee - Investment managers - Fund custodian - Investment plan -

Financial reports - Annual reports.

A. The Oklahoma State Regents for Higher Education shall

discharge their duties as trustees of the Oklahoma State Regents'

Endowment Trust Fund, as trustees of the Oklahoma State Regents'

Academic Scholars Trust Fund, as trustees of the Oklahoma Higher

Learning Access Trust Fund, as trustees of the Oklahoma GEAR UP

Scholarship Trust Fund, and as trustees of the Oklahoma Tuition

Equalization Grant Trust Fund, hereafter "Trust Funds":

1. With the care, skill, prudence, and diligence under the

circumstances then prevailing that a prudent person acting in a like

capacity and familiar with such matters would use in the conduct of

an enterprise of a like character and with like aims;

2. By diversifying the investments of the Trust Funds so as to

minimize the risk of large losses, unless under the circumstances it

is clearly prudent not to do so; and

3. In accordance with the laws, documents and instruments

governing the Trust Funds.

B. The State Regents may procure insurance indemnifying the

members of the State Regents from personal loss or accountability

from liability resulting from a member's action or inaction as a

trustee.

C. The State Regents may establish an investment committee for

any of the Trust Funds or any combination of such Trust Funds. Such

investment committee shall be composed of members of the State

Regents appointed by the chair of the State Regents. The committee

shall make recommendations to the entire membership of the State

Regents on all matters related to the choice of custodians and

managers of the assets of the Trust Funds, on the establishment of

investment and fund management guidelines, and in planning future

investment policy. The committee shall have no authority to act on

behalf of the State Regents in any circumstances whatsoever. No

recommendation of the committee shall have effect as an action of

the State Regents nor take effect without the approval of the State

Regents.

D. The State Regents may retain qualified investment managers

to provide for the investment of the monies of the Trust Funds and

may pay the fees for the services of such investment managers from

Oklahoma Statutes - Title 70. Schools Page 1582

the investment proceeds attributable to each of the Trust Funds.

The investment managers shall be chosen by a solicitation of

proposals on a competitive bid basis pursuant to standards set by

the State Regents. Subject to the overall investment guidelines set

by the State Regents, the investment managers shall have full

discretion in the management of those monies of the Trust Funds

allocated to the investment managers. The State Regents shall

manage those monies not specifically allocated to the investment

managers. The monies of the Trust Funds allocated to the investment

managers shall be actively managed by the investment managers, which

may include selling investments and realizing losses if such action

is considered advantageous to longer term return maximization.

Because of the total return objective, no distinction shall be made

for management and performance evaluation purposes between realized

and unrealized capital gains and losses.

E. Funds and revenues for investment by the investment managers

or the State Regents shall be placed with a custodian selected by

the State Regents. Payment of the fees for the custodians' services

may be paid from the applicable Trust Fund. The custodian shall be

a bank or trust company offering pension fund master trustee and

master custodial services. The custodian shall be chosen by a

solicitation of proposals on a competitive bid basis pursuant to

standards set by the State Regents. In compliance with the

investment policy guidelines of the State Regents, the custodian

bank or trust company shall be contractually responsible for
ustodian shall be

a bank or trust company offering pension fund master trustee and

master custodial services. The custodian shall be chosen by a

solicitation of proposals on a competitive bid basis pursuant to

standards set by the State Regents. In compliance with the

investment policy guidelines of the State Regents, the custodian

bank or trust company shall be contractually responsible for

ensuring that all monies of the Trust Funds are invested in income-

producing investment vehicles at all times. If a custodian bank or

trust company has not received direction from the investment

managers of the Trust Funds as to the investment of the monies of

the Trust Funds in specific investment vehicles, the custodian bank

or trust company shall be contractually responsible to the State

Regents for investing the monies in appropriately collateralized

short-term interest-bearing investment vehicles.

F. By November 1, 1989, and prior to August 1 of each year

thereafter, the State Regents shall develop written investment plans

for the Trust Funds.

G. The State Regents shall compile quarterly financial reports

of all the funds and accounts of the Oklahoma State Regents'

Endowment Trust Fund, the Oklahoma State Regents' Academic Scholars

Trust Fund, the Oklahoma Higher Learning Access Trust Fund, the

Oklahoma GEAR UP Scholarship Trust Fund, and the Oklahoma Tuition

Equalization Grant Trust Fund on a fiscal year basis. The reports

shall include several relevant measures of investment value,

including acquisition cost and current fair market value with

appropriate summaries of total holdings and returns. The reports

shall contain combined and individual rates of returns of the

investment managers by category of investment, over periods of time.

Oklahoma Statutes - Title 70. Schools Page 1583

The reports shall be distributed to the Director of the Legislative

Service Bureau and the Chair of the Joint Committee on Fiscal

Operations.

H. After July 1 and before October 1 of each year, the State

Regents shall publish four annual reports presented in simple and

easily understood language. The reports shall be submitted to the

Governor, the Speaker of the House of Representatives, the President

Pro Tempore of the Senate, the Director of the Legislative Service

Bureau, and the Chair of the Joint Committee on Fiscal Operations.

The annual reports shall cover the operation of the Oklahoma State

Regents' Endowment Trust Fund, the Oklahoma State Regents' Academic

Scholars Trust Fund, the Oklahoma Higher Learning Access Trust Fund,

the Oklahoma GEAR UP Scholarship Trust Fund, and the Oklahoma

Tuition Equalization Grant Trust Fund during the past fiscal year,

including income, disbursements, and the financial condition of the

Trust Funds at the end of the fiscal year. The annual reports shall

also contain the information issued in the quarterly reports

required pursuant to subsection G of this section as well as a

summary of the results of the most recent actuarial valuation to

include total assets, total liabilities, unfunded liability or over-

funded status, contributions and any other information deemed

relevant by the State Regents.