(a)As used in this section, "investment entity" means the
state treasurer and the Wyoming retirement board.
(b)The following shall apply to the investment of funds
made by each investment entity:
(i)All investments shall be made through the
exercise of judgment and care of a prudent investor in
accordance with W.S. 9-3-408(b) and 9-4-715(d)(i);
(ii)Each investment entity shall solely act in the
financial interest of beneficiaries when evaluating managers,
vendors, asset allocations and investment potential in order to
obtain the highest total return on a risk-adjusted basis while
adhering to all applicable laws;
(iii)Fiduciary decisions made by each investment
entity shall be based only on pecuniary factors. For purposes of
this paragraph, "pecuniary factors":
Free access — add to your briefcase to read the full text and ask questions with AI
(a) As used in this section, "investment entity" means the
state treasurer and the Wyoming retirement board.
(b) The following shall apply to the investment of funds
made by each investment entity:
(i) All investments shall be made through the
exercise of judgment and care of a prudent investor in
accordance with W.S. 9-3-408(b) and 9-4-715(d)(i);
(ii) Each investment entity shall solely act in the
financial interest of beneficiaries when evaluating managers,
vendors, asset allocations and investment potential in order to
obtain the highest total return on a risk-adjusted basis while
adhering to all applicable laws;
(iii) Fiduciary decisions made by each investment
entity shall be based only on pecuniary factors. For purposes of
this paragraph, "pecuniary factors":
(A) Are factors that have been prudently
determined and are expected to have a positive effect on the
risk-adjusted return of investments, based on appropriate
investment horizons consistent with the objectives of the
applicable funds and investment policies while adhering to
compliance, statutory and regulatory guidance;
(B) Do not include the furtherance of
environmental, social, governance, political or ideological
interests.
(iv) Nonpecuniary factors are those that do not
provide confidence in increased returns or lower risk and shall
be deemed causes for concern by each investment entity. No
investment entity shall act based on nonpecuniary factors, as
doing so may result in lower returns, increased risk or less
funding being available to the state of Wyoming;
(v) All vendors of each investment entity shall
adhere to the laws of Wyoming and the United States. Each
contract that an investment entity enters into with a vendor
shall require the vendor to acknowledge the requirements of this
paragraph;
(vi) Each investment entity shall respond in writing
after final determination to an investment partner, manager or
vendor that acts based on nonpecuniary factors because that may
result in a potential detrimental outcome to the highest total
return on a risk-adjusted basis or a loss to the state's
revenue;
(vii) In addition to providing a response under
paragraph (vi) of this subsection, each investment entity may
take any of the following actions necessary to ensure that all
fiduciary decisions are based on pecuniary factors:
(A) Requesting that the investment partner,
manager or vendor change policies to ensure that investments are
made based only on pecuniary factors;
(B) Voting of proxies to force change;
(C) Divesting or replacing investments,
investment partners, managers or vendors with competitive
alternatives.
(viii) Each investment partner, vendor and manager
selected and utilized by each investment entity shall adhere to
the standard of care of being a fiduciary, including the same
obligations as investment entities under paragraph (ii) of this
subsection, and comply with all requirements of the investment
policy statements adopted by the board under W.S. 9-4-716.
(c) Each investment entity shall provide management
oversight for the voting of proxies for all investments made by
the investment entity. Proxy votes shall be made in a way that
is consistent with the investment policy statements adopted by
the board under W.S. 9-4-716 and in accordance with the
pecuniary interests of Wyoming's investments and the state's
financial interests.
(d) Each investment entity may hire a proxy manager to
implement this section. The investment entity shall oversee the
proxy manager selected under this subsection. Each proxy manager
shall report to the investment entity not less than semiannually
on the proxy manager's activities.
(e) Each external investment manager selected by an
investment entity shall attest in writing not less than one (1)
time each year that the manager has adhered to the requirements
of this section.
(f) Each investment entity may use not more than one (1)
basis point of assets under management from annual investment
returns, with each invested fund's share calculated in
proportion to the magnitude of each fund invested, for purposes
of implementing the requirements of this section. Funds
authorized under this subsection are continuously appropriated
to the investment entity for use as authorized by this
subsection.
(g) Subject to state and federal law, the state treasurer
shall make available for public inspection and download from the
state treasurer's official website information on all proxy
votes regarding investments cast on behalf of the state. The
information shall include, at minimum, the date of each vote, a
description of the matter being voted on and an explanation of
the vote taken. Information published on the official website
under this subsection shall be maintained on the state
treasurer's website for not less than five (5) years.