{"data":{"id":"us-ok/okla.-stat.-tit.-62-62-2306","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 62, § 62-2306","heading":"Duties of Board of Investors","body":"A. The Board of Investors of the Tobacco Settlement Endowment\n\nTrust Fund shall discharge their duties as trustees of the Tobacco\n\nSettlement Endowment Trust Fund:\n\n1. With the care, skill, prudence, and diligence, under the\n\ncircumstances then prevailing, that a prudent person acting in a\n\nlike capacity and familiar with such matters would use in the\n\nconduct of an enterprise of a like character and with like aims;\n\n2. By diversifying the investments in the trust fund so as to\n\nminimize the risk of large losses, unless, under the circumstances,\n\nit is clearly prudent not to do so; and\n\n3. In accordance with the laws, documents, and instruments\n\ngoverning the trust fund.\n\nB. The Board of Investors shall retain qualified investment\n\nmanagers to provide for the investment of the monies of the trust\n\nfund. The investment managers shall be chosen by a solicitation of\n\nproposals on a competitive basis pursuant to standards set by the\n\nBoard of Investors. The investment managers shall manage those\n\nmonies of the trust fund allocated to the investment managers in\n\ncompliance with the overall investment guidelines set by the Board\n\nof Investors. The monies of the trust fund allocated to the\n\ninvestment managers shall be managed by the investment managers in\n\naccordance with the investment guidelines and other directions of\n\nthe Board of Investors. The investment managers may sell\n\ninvestments and realize losses if such action is considered\n\nadvantageous to longer-term return maximization. Because of the\n\ntotal return objective, no distinction shall be made for management\n\nand performance evaluation purposes between realized and unrealized\n\ncapital gains and losses. The Board of Investors may have the State\n\nTreasurer manage those monies not specifically allocated to the\n\ninvestment managers.\n\nC. The trust fund may be invested in the manner in which a\n\nprudent person would invest it and consistent with the manner that\n\nstate retirement funds are invested.\n\nD. The Board of Investors shall select a custodial bank to\n\nsettle transactions involving the investment of funds in the trust\n\nfund and to hold custody of the securities in the trust fund\n\nportfolio. The custodian shall be a bank or trust company offering\n\npension fund master trustee and master custodial services. The\n\ncustodian shall be chosen by a solicitation of proposals on a\n\ncompetitive basis pursuant to standards set by the Board of\n\nInvestors. The Board of Investors may also select professional\n\ninvestment consultants, auditors, and actuaries to assist the Board\n\nof Investors in carrying out its fiduciary responsibilities. All\n\nthese professionals shall be selected by a solicitation of proposals\n\non a competitive basis pursuant to standards set by the Board of\n\nInvestors.\n\nE. The Board of Investors shall choose the professional\n\ncustodians and managers of the assets of the trust fund, shall\n\nestablish investment and fund management guidelines, and shall adopt\n\nan investment policy. The selection of investment managers,\n\ninvestment consultants, auditors, and actuaries, and a custodian\n\nbank shall be exempt from the provisions of the Oklahoma Central\n\nPurchasing Act.\n\nF. The Board of Investors shall set aside cash reserves from\n\nthe earnings of the Tobacco Settlement Endowment Trust Fund if\n\nrequested by the Board of Directors of the Tobacco Settlement\n\nEndowment Trust Fund pursuant to subsection B of Section 10 of this\n\nact.\n\nG. The State Treasurer shall provide any necessary staff\n\nsupport to the Board of Investors. The cost of up to two full-time-\n\nequivalent employees for the Office of the State Treasurer may be\n\nconsidered as an administrative expense of the trust fund. However,\n\nthe amount provided to the State Treasurer for this purpose shall be\n\ndetermined by the Board of Directors of the Tobacco Settlement\n\nEndowment Trust Fund.","path":["OK Code","Title 62"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os62.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"e59a0638946498e81f897c21a511a3012d5a3dab416a364be9d04146ebb4e0ae","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-62-62-2305","next":"us-ok/okla.-stat.-tit.-62-62-2307"},"notice":"GroundRules: Original legal text. Not legal advice."}