{"data":{"id":"us-ok/okla.-stat.-tit.-70-70-3954","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 70, § 70-3954","heading":"Trustee duty of care - Indemnity insurance - Investment","body":"committee - Investment managers - Fund custodian - Investment plan -\n\nFinancial reports - Annual reports.\n\nA. The Oklahoma State Regents for Higher Education shall\n\ndischarge their duties as trustees of the Oklahoma State Regents'\n\nEndowment Trust Fund, as trustees of the Oklahoma State Regents'\n\nAcademic Scholars Trust Fund, as trustees of the Oklahoma Higher\n\nLearning Access Trust Fund, as trustees of the Oklahoma GEAR UP\n\nScholarship Trust Fund, and as trustees of the Oklahoma Tuition\n\nEqualization Grant Trust Fund, hereafter \"Trust Funds\":\n\n1. With the care, skill, prudence, and diligence under the\n\ncircumstances then prevailing that a prudent person acting in a like\n\ncapacity and familiar with such matters would use in the conduct of\n\nan enterprise of a like character and with like aims;\n\n2. By diversifying the investments of the Trust Funds so as to\n\nminimize the risk of large losses, unless under the circumstances it\n\nis clearly prudent not to do so; and\n\n3. In accordance with the laws, documents and instruments\n\ngoverning the Trust Funds.\n\nB. The State Regents may procure insurance indemnifying the\n\nmembers of the State Regents from personal loss or accountability\n\nfrom liability resulting from a member's action or inaction as a\n\ntrustee.\n\nC. The State Regents may establish an investment committee for\n\nany of the Trust Funds or any combination of such Trust Funds. Such\n\ninvestment committee shall be composed of members of the State\n\nRegents appointed by the chair of the State Regents. The committee\n\nshall make recommendations to the entire membership of the State\n\nRegents on all matters related to the choice of custodians and\n\nmanagers of the assets of the Trust Funds, on the establishment of\n\ninvestment and fund management guidelines, and in planning future\n\ninvestment policy. The committee shall have no authority to act on\n\nbehalf of the State Regents in any circumstances whatsoever. No\n\nrecommendation of the committee shall have effect as an action of\n\nthe State Regents nor take effect without the approval of the State\n\nRegents.\n\nD. The State Regents may retain qualified investment managers\n\nto provide for the investment of the monies of the Trust Funds and\n\nmay pay the fees for the services of such investment managers from\n\nthe investment proceeds attributable to each of the Trust Funds.\n\nThe investment managers shall be chosen by a solicitation of\n\nproposals on a competitive bid basis pursuant to standards set by\n\nthe State Regents. Subject to the overall investment guidelines set\n\nby the State Regents, the investment managers shall have full\n\ndiscretion in the management of those monies of the Trust Funds\n\nallocated to the investment managers. The State Regents shall\n\nmanage those monies not specifically allocated to the investment\n\nmanagers. The monies of the Trust Funds allocated to the investment\n\nmanagers shall be actively managed by the investment managers, which\n\nmay include selling investments and realizing losses if such action\n\nis considered advantageous to longer term return maximization.\n\nBecause of the total return objective, no distinction shall be made\n\nfor management and performance evaluation purposes between realized\n\nand unrealized capital gains and losses.\n\nE. Funds and revenues for investment by the investment managers\n\nor the State Regents shall be placed with a custodian selected by\n\nthe State Regents. Payment of the fees for the custodians' services\n\nmay be paid from the applicable Trust Fund. The custodian shall be\n\na bank or trust company offering pension fund master trustee and\n\nmaster custodial services. The custodian shall be chosen by a\n\nsolicitation of proposals on a competitive bid basis pursuant to\n\nstandards set by the State Regents. In compliance with the\n\ninvestment policy guidelines of the State Regents, the custodian\n\nbank or trust company shall be contractually responsible for\nustodian shall be\n\na bank or trust company offering pension fund master trustee and\n\nmaster custodial services. The custodian shall be chosen by a\n\nsolicitation of proposals on a competitive bid basis pursuant to\n\nstandards set by the State Regents. In compliance with the\n\ninvestment policy guidelines of the State Regents, the custodian\n\nbank or trust company shall be contractually responsible for\n\nensuring that all monies of the Trust Funds are invested in income-\n\nproducing investment vehicles at all times. If a custodian bank or\n\ntrust company has not received direction from the investment\n\nmanagers of the Trust Funds as to the investment of the monies of\n\nthe Trust Funds in specific investment vehicles, the custodian bank\n\nor trust company shall be contractually responsible to the State\n\nRegents for investing the monies in appropriately collateralized\n\nshort-term interest-bearing investment vehicles.\n\nF. By November 1, 1989, and prior to August 1 of each year\n\nthereafter, the State Regents shall develop written investment plans\n\nfor the Trust Funds.\n\nG. The State Regents shall compile quarterly financial reports\n\nof all the funds and accounts of the Oklahoma State Regents'\n\nEndowment Trust Fund, the Oklahoma State Regents' Academic Scholars\n\nTrust Fund, the Oklahoma Higher Learning Access Trust Fund, the\n\nOklahoma GEAR UP Scholarship Trust Fund, and the Oklahoma Tuition\n\nEqualization Grant Trust Fund on a fiscal year basis. The reports\n\nshall include several relevant measures of investment value,\n\nincluding acquisition cost and current fair market value with\n\nappropriate summaries of total holdings and returns. The reports\n\nshall contain combined and individual rates of returns of the\n\ninvestment managers by category of investment, over periods of time.\n\nThe reports shall be distributed to the Director of the Legislative\n\nService Bureau and the Chair of the Joint Committee on Fiscal\n\nOperations.\n\nH. After July 1 and before October 1 of each year, the State\n\nRegents shall publish four annual reports presented in simple and\n\neasily understood language. The reports shall be submitted to the\n\nGovernor, the Speaker of the House of Representatives, the President\n\nPro Tempore of the Senate, the Director of the Legislative Service\n\nBureau, and the Chair of the Joint Committee on Fiscal Operations.\n\nThe annual reports shall cover the operation of the Oklahoma State\n\nRegents' Endowment Trust Fund, the Oklahoma State Regents' Academic\n\nScholars Trust Fund, the Oklahoma Higher Learning Access Trust Fund,\n\nthe Oklahoma GEAR UP Scholarship Trust Fund, and the Oklahoma\n\nTuition Equalization Grant Trust Fund during the past fiscal year,\n\nincluding income, disbursements, and the financial condition of the\n\nTrust Funds at the end of the fiscal year. The annual reports shall\n\nalso contain the information issued in the quarterly reports\n\nrequired pursuant to subsection G of this section as well as a\n\nsummary of the results of the most recent actuarial valuation to\n\ninclude total assets, total liabilities, unfunded liability or over-\n\nfunded status, contributions and any other information deemed\n\nrelevant by the State Regents.","path":["OK Code","Title 70"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os70.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"c666daa36a8c2a9f9f36d663352dc225a2704f2cba2dcc3260f08e071a18ca0f","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-70-70-3953.4","next":"us-ok/okla.-stat.-tit.-70-70-3955"},"notice":"GroundRules: Original legal text. Not legal advice."}