§ 59-2-90 — Investment of trust funds.

South Carolina § 59-2-90

• Jurisdiction: South Carolina
• Title 59: EDUCATION
• Ch. 2: SOUTH CAROLINA COLLEGE INVESTMENT PROGRAM

Text

(A) The Office of State Treasurer has authority to establish a comprehensive investment plan for the purposes of this chapter, to invest any funds of the trust fund in any instrument, obligation, security, or property that constitutes legal investments, and to name and use depositories for its investments and holdings. The comprehensive investment plan shall specify the investment policies to be utilized by the State Treasurer in its administration of the funds. Notwithstanding any provisions of law, the Office of State Treasurer shall invest or cause to be invested amounts on deposit in the trust fund in a manner reasonable and appropriate to achieve the objectives of the program, exercising the discretion and care of a prudent person in similar circumstances with similar objectives. The Office of State Treasurer shall give due consideration to the risk, expected rate of return, term or maturity, diversification of total investments, liquidity, and anticipated investments in and withdrawals from the trust fund. (B) All investments shall be acquired at prices not exceeding the prevailing market values for such securities. (C) Any limitations herein set forth shall be applicable only at the time of purchase and shall not require the liquidation of any investment at any time. All investments shall be clearly marked to indicate ownership by the trust fund and to the extent possible shall be registered in the name of the trust fund. (D) Subject to the above terms, conditions, limitations, and restrictions, the Office of State Treasurer shall have power to sell, assign, transfer, and dispose of any of the securities and investments of the trust fund. The State Treasurer may employ or contract with investment managers, evaluation services, or other such services as determined by the Office of State Treasurer to be necessary for the effective and efficient operation of the trust fund. (E) Except as otherwise provided herein, no employee of the trust fund shall have any direct or indirect interest in the income, gains, or profits of any investment made by the trust fund, nor shall any such person receive any pay or emolument for his services in connection with any investment made by the trust fund. (F) Under the authority granted in Section 59-2-50, the State Treasurer may establish criteria for investment managers, mutual funds, or other entities to act as contractors or consultants to the Office of State Treasurer. The State Treasurer may contract, either directly or through these contractors or consultants, to provide such services as may be a part of the comprehensive investment plan or as may be deemed necessary or proper by the State Treasurer including, but not limited to, providing consolidated billing, individual and collective recordkeeping and accounting, and asset purchase, control, and safekeeping. (G) No account owner, contributor, or beneficiary may directly or indirectly direct the investment of any account except as may be permitted under Section 529 of the Internal Revenue Code of 1986, as amended. (H) The Office of State Treasurer may approve different investment plans and options to be offered to participants to the extent permitted under Section 529 of the Internal Revenue Code of 1986, as amended, and consistent with the objectives of this chapter and may require the assistance of investment counseling prior to participation in different options.

Legislative History

HISTORY: 2001 Act No. 72, SECTION 3(A).