38-719 - Arizona Statutes

38-719. Investment of monies; limitations A. Investment management may invest and reinvest the monies in its accounts and may hold, purchase, sell, assign, transfer and dispose of any of the securities and investments in which any of its account monies are invested. Investment management shall redeposit the proceeds of sales, maturities and calls in the ASRS depository. B. Investment management shall discharge the duties of the position with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with the same matters would use in the conduct of an enterprise of a like character and with like aims as that of ASRS, except that: 1. No more than eighty per cent of ASRS assets may be invested at any given time in corporate stocks or equity equivalents, based on cost value of the stocks or equity equivalents irrespective of capital appreciation. 2. No more than five per cent of ASRS assets may be invested in securities issued by any one institution, agency or corporation, other than securities issued as direct obligations of or fully guaranteed by the United States government or mortgage backed securities and agency debentures issued by federal agencies. 3. No more than five per cent of the voting stock of any one corporation may be owned. 4. No more than thirty per cent of ASRS assets may be invested in foreign securities, and those investments shall be made only by investment managers with demonstrated expertise in those investments. 5. No more than ten per cent of ASRS assets may be invested in bonds or other evidences of indebtedness of those multinational development banks in which the United States is a member nation, including the international bank for reconstruction and development, the African development bank, the Asian development bank and the Inter-American development bank. 6. No more than one per cent of ASRS assets may be invested in economic development projects authorized as eligible for investment by the department of commerce. C. Notwithstanding any other law, investment management shall not be required to invest in any type of investment that is dictated or required by any entity of the federal government and that is intended to fund economic development projects, public works or social programs but may consider such economically targeted investments pursuant to its fiduciary responsibility.