§ 9-4-715 — Permissible investments

Wyoming § 9-4-715

• Jurisdiction: Wyoming
• Title 09: Administration of the Government
• Ch. 4: PUBLIC FUNDS
• Art. 7: INVESTMENT OF STATE FUNDS

Text

(a) The state treasurer, in consultation with the
investment funds committee, shall employ a designated chief
investment officer who shall have minimum qualifications
including at least ten (10) years of experience managing
institutional investment portfolios of in excess of five hundred
million dollars ($500,000,000.00), experience with hiring and
managing internal and external investment managers and extensive
experience in any two (2) or more of the following areas:
domestic equity, fixed income securities, international equity
or alternative investments. The designated chief investment
officer shall provide the state treasurer with information and
recommendations regarding the investment of state funds and
additional information as requested by the state treasurer. The
state treasurer shall vote the shares of investments of state
funds or use proxy voting in accordance with W.S. 9-4-722. The
state treasurer shall compile an annual report which shall
include investment, income, individual and aggregate gains and
losses by fund and the extent to which the state investment
policy is being implemented. Subject to requirements of
subsection (c) of this section, state funds may be invested in
any investment:
(i) Authorized by the legislature; or
(ii) Authorized or approved by the board.
(b) The state treasurer, or his designee, which shall be
registered under the Investment Advisers Act of 1940 as amended
if required to be registered by the terms of that act as
amended, may invest the permanent funds in equities, including
stocks of corporations in accordance with subsections (a)
through (e) of this section, W.S. 9-4-716 and 9-4-722. The state
treasurer shall report at least annually to the select committee
on capital financing and investments, the joint appropriations
committee and the investment funds committee on the analysis
conducted pursuant to paragraph (d)(ii) of this section and W.S.
9-4-716(b)(ix) and (e).
(c) The state treasurer shall obtain the approval of the
board prior to the investment of funds in alternative
investments, provided:
(i) The investment funds committee shall review any
new proposed investment of funds in alternative investments and
shall submit recommendations to the board;
(ii) The approval of the board shall be complete
after consideration of any recommendation from the investment
funds committee and upon the review and written acceptance by
the board of the material terms of the instruments governing the
investment;
(iii) Any material adverse change to the terms of
instruments governing investments, previously approved by the
board, at any time while the investments are held by the state
of Wyoming shall require the renewal of approval of such
investments by the board.
(d) When approving, acquiring, investing, reinvesting,
exchanging, retaining, selling and managing investments of the
state of Wyoming, the members of the board, the members of the
investment funds committee, the state treasurer, designees of
the state treasurer or any other fiduciary appointed by the
state treasurer, the board or the investment funds committee
shall:
(i) Exercise the judgment and care of a prudent
investor as specified by the Uniform Prudent Investor Act, W.S.
4-10-901 through 4-10-913;
(ii) Evaluate the risk of investments using a
strategy based on the principles of the capital market theory
which are generally accepted and followed by institutional
investors including long-term investors. This strategy includes
a consideration of the following:
(A) Risks shall be mitigated through
diversification of asset classes and investment approaches and
through diversification of individual securities;
(B) Prudent risk taking is a necessary element
of long-term investing and is needed to achieve the long-term
objectives of a fund.
(e) Individual investments or groups of investments made
under this act shall not be evaluated solely in isolation but
also in the context of the entire investment portfolio and as
part of an overall investment strategy of the trust or fund from
which the investment is derived, consistent with the policies
for such trust or fund established under W.S. 9-4-716 by the
board. The purchase of a security or the making of any direct
investment by the state treasurer or his designee in a security
shall not constitute a delegation of his duties under this
article or under any rule promulgated under this article.
(f) Repealed By Laws 2011, Ch. 129, § 207.
(g) Repealed By Laws 2016, ch. 110, § 2.
(h) Repealed by Laws 2016, ch. 110, § 3.
(j) Repealed by Laws 2019, ch. 35, § 2.
(k) Except as provided in subsection (o) of this section,
upon request of the board, the state treasurer may invest funds
received from sales of state trust lands plus up to two million
dollars ($2,000,000.00) one-time seed money contained in the
common school account within the permanent land fund, by
purchasing land and improvements thereon within Wyoming as
assets of the trust.
(m) Repealed by Laws 2016, ch. 41, § 1.
(n) The state treasurer shall not invest state funds for a
specific public purpose authorized or directed by the
legislature in excess of a total of one billion dollars
($1,000,000,000.00), excluding investments made pursuant to W.S.
37-5-406 or 37-5-605. By November 1 of each calendar year, the
state treasurer, in consultation with the board, the Wyoming
water development office, the Wyoming business council and the
office of state lands and investments, shall provide a report to
the select committee on capital financing and investments and
the investment funds committee on all state funds invested for a
specific public purpose authorized or directed by the
legislature. The report shall include:
(i) A list of all investment or loan requests made in
the previous year, the amount loaned or invested and the status
of all investments and loans, including those which are
delinquent as to the payment of any installment of principal or
interest due;
(ii) Recommendations for future legislation,
including recommendations for adjustments to the amount
allocated by this subsection and recommendations for adjustments
to the amounts allocated under applicable state law for
individual investments authorized or directed by the legislature
for a specific public purpose; and
(iii) The cost of the investment to the people of
Wyoming in terms of:
(A) Forgone earnings that could have been
obtained if the funds had been invested by the state treasurer
with the permanent funds of the state;
(B) Administrative and other costs associated
with each investment.
(o) Upon request of the board and when determined by the
board to be consistent with the duties and obligations owed to
beneficiaries of state trust land sales proceeds, the state
treasurer shall invest funds received from the sale of state
trust lands to the federal government by purchasing federal
lands and improvements within Wyoming from the federal
government.
(p) There is created the pool A investment account. The
state treasurer, or his designee, which shall be registered
under the Investment Advisor's Act of 1940 as amended if
required to be registered by the terms of that act as amended,
pursuant to subsections (c) and (d) of this section and after
consultation with the state agency or agencies receiving or
administering investment earnings from the monies invested in
the pool A investment account, may invest monies comprising the
pool A investment account in equities including stocks of
corporations in accordance with subsections (a) and (c) through
(e) of this section and W.S. 9-4-716. The state loan and
investment board, in consultation with the state agency or
agencies receiving or administering investment earnings from the
monies invested in the pool A investment account, shall annually
review the state investment policy statements for the investment
pool created by this subsection as required under W.S. 9-4-716.
On and after July 1, 2024, any new fund or account that is added
to the pool A investment account shall have and maintain a cash
balance, as determined consistent with W.S. 9-4-108, of not less
than five million dollars ($5,000,000.00). Monies in the
following funds shall be invested in the pool A investment
account:
(i) The Wyoming tobacco settlement trust fund created
by W.S. 9-4-1203(a);
(ii) Repealed by Laws 2025, ch. 149, § 2.
(iii) Repealed by Laws 2025, ch. 149, § 2.
(iv) The Wyoming public television matching fund
account created by W.S. 21-23-202(a);
(v) The trust account within the Wyoming game and
fish fund created by W.S. 23-1-501(f) and any other monies
designated by the Wyoming game and fish commission for
investment in the Pool A investment account from within the
Wyoming game and fish fund created by W.S. 23-1-501;
(vi) Through the fiscal year ending June 30, 2034,
the Wyoming state penitentiary capital construction account
created by W.S. 9-4-220.1(a);
(vii) The transportation trust fund created by W.S.
9-4-607(a);
(viii) Repealed by Laws 2024, ch. 87, § 2.
(ix) The emergency water projects account created by
W.S. 41-2-124(f), excluding the voluntary pool program
subaccount within that account;
(x) The state fair endowment account created by W.S.
11-10-118;
(xi) The Wyoming children's trust fund created by
W.S. 14-8-106;
(xii) Repealed by Laws 2024, ch. 87, § 2.
(xiii) The Wyoming military assistance trust fund
created by W.S. 19-7-401;
(xiv) Repealed by Laws 2023, ch. 139, § 3.
(xv) Repealed by Laws 2024, ch. 87, § 2.
(xvi) Up to one hundred percent (100%) of the state
unemployment insurance trust fund created by W.S. 27-3-209(a),
as determined by the director of the department of workforce
services.
(q) The state treasurer, or his designee, which shall be
registered under the Investment Advisor's Act of 1940 as amended
if required to be registered by the terms of that act as amended
shall invest the legislative stabilization reserve account
created in W.S. 9-4-219 in a manner to obtain the highest net
return possible subject to the following:
(i) Investments shall be made in accordance with
investment policy statements adopted by the board under W.S. 9-
4-716. In adopting investment policy statements for the
legislative stabilization reserve account, the board shall seek
to preserve the balance of the account as necessary to address:
(A) A budget shortfall or structural budget
deficit through contingent appropriations and expenditures under
W.S. 9-2-1014(d)(ii) and (iii);
(B) A published consensus revenue estimating
group estimate of revenues that is less than existing
legislative appropriations for state government operations or
support of public schools;
(C) Other emergencies and needs identified or
authorized by the legislature under Wyoming statutes and session
laws.
(ii) To the extent funds are available and prior to
making any other investments, five hundred million dollars
($500,000,000.00) shall be invested in short term fixed income
investment grade securities;
(iii) After consultation with the state budget
department, the unobligated, unencumbered balance of the
legislative stabilization reserve account in excess of the
amount specified in paragraph (ii) of this subsection, as
calculated by the state auditor on October 1 of each fiscal
year, may be invested in equities, including stocks of
corporations. Investments under this paragraph shall be made in
compliance with subsections (a) and (c) through (e) of this
section and W.S. 9-4-716;
(iv) Not later than November 1 of each year, the
state treasurer shall report to the joint appropriations
committee and the select committee on capital financing and
investments regarding the annual review of the investment policy
statement for the legislative stabilization reserve account and
the investment performance of the account.
(r) The state treasurer, or his designee, which shall be
registered under the Investment Advisor's Act of 1940 as amended
if required to be registered by the terms of that act as
amended, may invest the unobligated, unencumbered balance of the
permanent Wyoming mineral trust fund reserve account created
under W.S. 9-4-719(b) and common school permanent fund reserve
account created under W.S. 9-4-719(f) in equities, including
stocks of corporations. Investments under this subsection shall
be in accordance with subsections (a) and (c) through (e) of
this section and W.S. 9-4-716. In adopting investment policy
statements for the permanent Wyoming mineral trust fund reserve
account and common school permanent fund reserve account, the
board shall seek to preserve the balance of each account in a
manner that strives for the highest possible risk-adjusted total
net return consistent with an appropriate level of safety and
liquidity.