Take such action as may be necessary to make investments in mortgage loans or in the purchase of interests in real estate in any other state or in Canada, including but not excluding because of enumeration, qualifying to do business, filing reports, paying franchise, license or other fees and taxes, designating agents, designating an office and subjecting itself to suit.
Maintain and repair any building or other structure or premises which it owns in fee or in which it owns the beneficial interest and, notwithstanding all provisions of subch. IV
or V of ch. 16
, except s. 16.753
, it shall have exclusive authority to make such agreements and enter into such contracts as it deems necessary for such purpose. Section 16.753
does not apply to agreements and contracts entered into by the board for the purpose of assisting the board with investments. All noncapital costs under this paragraph shall be charged to the current income accounts of the funds having an interest in the building, structure or premises.
Engage in financial transactions whereby bearer securities issued or guaranteed by the federal government or any of its agencies, which are owned by the board, are delivered to reputable and financially responsible dealers in the securities under an agreement which provides:
For the replacement of the securities with securities of the same kind and amount upon demand by the board;
For the payment to the board by the dealer of a commission, based upon the amount of the securities, for the period of time between the delivery of the securities to the dealer and the dealer's replacement of the securities; and
For the pledge and delivery by the dealer to the board of other securities issued or guaranteed by the federal government or any of its agencies, having a market value at the time of the pledge equal to at least the market value of the delivered securities, to guarantee the replacement of the securities.
Sell stock, debentures or other securities which it has the right to acquire upon the exercise of conversion rights then owned by it.
Engage in financial transactions whereby securities owned by the board, are delivered to reputable and financially responsible dealers under an agreement satisfactory to the board which provides for cash equal to the full current market value of the security as adjusted from time to time to changes in the market, and for replacement thereof with securities of the kind and amount upon demand by the board.
Engage in financial transactions whereby securities owned by the board are delivered to reputable and financially responsible dealers under an agreement satisfactory to the board which provides for delivery to the board of other securities as collateral of at least equal value to the current market value of the security as adjusted from time to time to changes in the market, and for replacement of the original securities of the same kind and amount upon demand by the board.
Engage in financial transactions whereby securities are purchased by the board under an agreement providing for the resale of such securities by the board to the original seller at a stated price together with a payment to the board of interest for the period the board holds the securities.
Notwithstanding all provisions of subchs. IV
and V of ch. 16
, except s. 16.753
, employ professionals, contractors or other agents necessary to evaluate or operate any property if a fund managed by the board has an interest in, or is considering purchasing or lending money based upon the value of, that property. Section 16.753
does not apply to the employment of any person for the purpose of assisting the board with investments. Costs under this paragraph shall be paid by the fund and charged to the appropriate account under s. 40.04 (3)
For the purpose of protecting an investment or group of assets aggregated for investment purposes against a risk, to meet nonspeculative objectives relating to rates of return or cash flow requirements or for similar purposes, enter into a contract with any person whom the board considers to be creditworthy to exchange the nature of payments or assets due to be given or received between the parties.
Invest any of the assets of the permanent endowment fund in any investment that is an authorized investment for assets in the core retirement investment trust under s. 25.17 (4)
or assets in the variable retirement investment trust under s. 25.17 (5)
Hold any of the assets in the permanent endowment fund in any of the following:
Evidences of indebtedness, including subordinated obligations, that are secured by tobacco settlement revenues, as defined in s. 16.63 (1) (c)
, and that are issued by a corporation or company established under s. 16.63 (3)
or by the Wisconsin Health and Educational Facilities Authority.
Certificates or other evidences of ownership interest in all or any portion of tobacco settlement revenues, as defined in s. 16.63 (1) (c)
In addition to the powers set forth in sub. (1)
and s. 25.17
, but subject to s. 25.183
, the board may:
Nominate employees, members, agents or other representatives of the board to serve as directors of corporations, companies, associations or any other legal entities and allow them to serve as such representing the board. Notwithstanding ss. 19.56
and 25.16 (2)
, members, agents or other representatives of the board, except employees, may retain any compensation paid to them as directors. An employee of the board who receives compensation for serving as a director shall deposit the compensation with the board.
Have its employees, agents or other representatives represent the board in meetings of shareholders, limited liability companies, partnerships or associations.
Have any of its employees serve as an officer of a corporation in which it owns voting stock, or have any of its employees serve as an officer of a company, joint venture or association, or as a manager of a limited liability company, in which it owns an interest.
Insure against from the current income of any fund or trust, or pay out of current income of any fund or trust, amounts arising from any acts of employees, members or agents of the board acting as officers or directors of a company in which the board has invested the moneys in the fund or trust.
Contract with and delegate to investment advisers the management and control over assets from any fund or trust delivered to such investment advisers for investment in real estate, mortgages, equities, and debt and pay such advisers fees from the current income of the fund or trust being invested. Subject to subd. 2.
, no more than 20 percent of the total assets of the core retirement investment trust or 20 percent of the total assets of the variable retirement investment trust may be delivered to investment advisers to manage in accounts in which the board directly holds title to all securities purchased for the accounts. The board shall set performance standards for such investment advisers, monitor such investments to determine if performance standards are being met and if an investment adviser does not consistently meet the performance standards then terminate the contract with such investment adviser.
For the purpose of calculating the 20 percent limit under subd. 1.
, the board shall not include any appreciation on assets delivered to the investment advisers. The board shall also not include for this purpose shares or participation in mutual funds, index funds, commingled funds, partnership funds, or other similar collective investment instruments in which the board does not hold title to the underlying investments purchased by the manager of the fund or the collective investment instrument.
Notwithstanding s. 19.45 (4)
, investment board employees may disclose information to other investment board employees who are also students participating in a program in the School of Business at the University of Wisconsin-Madison related to applied securities analysis, or participating in a comparable program, if the only use of the information unrelated to investment board purposes would be for purposes related to the program.
Management authority for certain funds.
In addition to the management authority provided under any other provision of law, and notwithstanding any limitation on the board's management authority provided under any other provision of law, the board shall have authority to manage the money and property of the core retirement investment trust and, subject to s. 25.17 (5)
, the variable retirement investment trust in any manner that does not violate the standard of responsibility specified in s. 25.15 (2)
History: 2007 a. 212
The Investment Board has the power to make investments that meet the standard of prudence under s. 25.15 (2), even if those investments are not specifically listed in ch. 25. Prior to making investments other than the types enumerated in ch. 25, the board is not required to make a threshold finding that investing solely in the "legal list" would not meet the standard of prudence. The statutory standard for prudence remains the same whether the board is investing in an enumerated investment, or one that is not enumerated. Because the standard of prudence, however, takes into account the trustees' powers to manage the funds, the board's expanded powers are a relevant factor in evaluating whether the board has met that standard. OAG 11-08
Certain investments prohibited. 25.183(1)(a)
"Derivative" means any financial contract or other instrument that derives its value from the value or performance of any security, currency exchange rate or interest rate or of any index or group of any securities, currency exchange rates or interest rates, but does not include any of the following:
Any security that is traded on a national securities exchange or on an automated interdealer quotation system sponsored by a securities association registered under 15 USC 78o-3
, et seq.
Any forward contract which has a maturity at the time of issuance not exceeding 270 days.
Any contract of sale of a commodity, as defined under 7 USC 2
, for future delivery, or any option on such a contract, traded or executed on a designated contract market and subject to regulation under 7 USC 1
Any security of an open-end management investment company or investment trust, if the investment company or investment trust is registered under 15 USC 80a-1
Any collateralized mortgage obligation or other asset-backed security which either has one of the 2 highest ratings given by a nationally recognized rating service or is backed or collateralized by insured instruments, guarantees or pledges of the federal government, this state or an agency of the federal government or this state.
Any transaction permitted under s. 25.18 (1) (n)
, if all of the following conditions are met at the time the transaction is entered into:
The counterparty to the transaction is rated in, or has outstanding long-term debt which is rated in, one of the 2 highest ratings given by a nationally recognized rating service.
The transaction is used only for specified hedging or interest rate risk reduction purposes.
All of the board's payment obligations under the transaction are fully backed by distinctly identified assets held in the state investment fund.
Any financial contract or instrument that the board determines, by rule, is not a derivative.
"Reverse repurchase agreement" means an agreement for the sale of securities by the board under which the board will repurchase those securities on or before a specified date and for a specified amount.
(2) Derivative investments.
After May 7, 1996, the board may not purchase or acquire any derivative in the state investment fund except in accordance with rules promulgated by the board. Rules promulgated under this subsection may not permit the purchase or acquisition of derivatives in the state investment fund unless the purchase or acquisition is made for the purpose of reducing risk of price changes or of interest rate or currency exchange rate fluctuations with respect to investments held or to be held by the board.
(3) Reverse repurchase agreements.
After May 7, 1996, the board may not enter into any reverse repurchase agreement unless the repurchase of securities under the agreement is required to occur no later than the next business day.
History: 1995 a. 274
Confidentiality of venture capital investment information.
Information relating to investments made or considered by the board in securities of entities that are in the venture capital stage are not subject to public inspection, copying, or disclosure under s. 19.35
unless the information has been publicly released by another person.
History: 2011 a. 32
Minority financial advisers and investment firms; disabled veteran-owned financial advisers and investment firms. 25.185(1)(a)
"Disabled veteran-owned financial adviser" means a financial adviser certified by the department of administration under s. 16.283 (3)
"Disabled veteran-owned investment firm" means an investment firm certified by the department of administration under s. 16.283 (3)
"Minority financial adviser" means a financial adviser certified by the department of administration under s. 16.287 (2)
"Minority investment firm" means an investment firm certified by the department of administration under s. 16.287 (2)
The board shall attempt to ensure that 5% of the total funds expended for financial and investment analysis and for common stock and convertible bond brokerage commissions in each fiscal year is expended for the services of minority financial advisers or minority investment firms.
The board shall annually report to the department of administration the total amount of moneys expended under sub. (2)
for common stock and convertible bond brokerage commissions, the services of minority and disabled veteran-owned financial advisers, and the services of minority and disabled veteran-owned investment firms during the preceding fiscal year.
Broker-dealers located in this state. 25.186(1)(b)
"Securities trading brokerage commission" means any commission or fee paid on or for a brokered security transaction, a purchase of a security or any other kind of trade of a security.
Of the total funds that are expended by the board for securities trading brokerage commissions in any fiscal year, the board shall pay at least 5% of the total funds in securities trading brokerage commissions to broker-dealers that are registered under s. 551.406
, that are headquartered in this state and whose principal business operations are located in this state.
For the purpose of satisfying the requirement under par. (a)
, the board may not include any securities trading brokerage commissions paid to minority financial advisers and minority investment firms under s. 25.185
Annually, no later than September 30, the board shall submit a report to the department of administration documenting the amount of moneys expended in the preceding fiscal year by the board for securities trading brokerage commissions and the amount of moneys paid in the preceding fiscal year for securities trading brokerage commissions to broker-dealers under sub. (2) (a)
History: 1999 a. 9
; 2007 a. 196
Operating expenditures. 25.187(1)
In this section, "operating expenditures" include all costs and expenses incurred by the investment board for the purpose of operating the board and managing the assets of each fund for which the board has management responsibility, but does not include costs or expenses incurred under s. 25.18 (1) (a)
or (2) (d)
or 40.04 (3) (intro.)
On September 1 of each year, the investment board shall assess each fund for which the board has management responsibility for its share of the board's operating expenditures for the current fiscal year in an equitable manner. The board shall pay the assessment from the current income of each fund, unless an appropriation is made for payment of the assessment, in which case the assessment shall be paid from that appropriation account.
The investment board may establish the operating budget for operating expenditures and monitor the fiscal management of this operating budget.
The investment board shall transmit a notice of each assessment to each fund at the time that the assessment is made, and shall transmit a statement of the board's actual expenditures for management of each fund at the close of each fiscal year both to the state agency having primary responsibility for expenditure of principal or earnings of the fund and to the department of administration or, if there is no state agency, only to the department of administration.
Treasurer; bond; deposit of securities; cash management. 25.19(1)(1)
The state treasurer shall be the treasurer of the board and shall give an additional bond in the amount and with the corporate sureties required and approved by the board, the cost of which shall be borne by the board.
Any of the securities purchased by the board for any of the funds whose investment is under the control of the board may be deposited by the board in vaults or other safe depositories either in or outside of this state.
The secretary of administration shall, at the direction of the depository selection board under s. 34.045 (1) (bm)
, allocate bank service costs to the funds incurring those costs.
The secretary of administration shall provide advice to state agencies concerning efficient cash management practices.
All moneys in the state treasury not specifically designated in any statute as belonging to any other funds constitute the general fund.
Conservation fund. 25.29(1)(1)
There is established a separate nonlapsible trust fund designated as the conservation fund to consist of:
Except as provided in ss. 25.293
, all moneys accruing to the state for or in behalf of the department under chs. 26
, and 350
, subchs. I
and VI of ch. 77
and ss. 23.09
, 71.10 (5)
, 71.30 (10)
, and 90.21
, including grants received from the federal government or any of its agencies except as otherwise provided by law.
For fiscal year 1992-93, and for each fiscal year thereafter, an amount equal to the estimated motorboat gas tax payment multiplied by 1.4. Except for fiscal years 2007-08, 2008-09, and 2009-10, the estimated motorboat gas tax payment is calculated by multiplying the number of motorboats registered under s. 30.52
on January 1 of the previous fiscal year by 50 gallons and multiplying that product by the excise tax imposed under s. 78.01 (1)
on April 1 of the previous fiscal year. For fiscal years 2007-08, 2008-09, and 2009-10, the estimated motorboat gas tax payment is calculated by multiplying the number of motorboats registered under s. 30.52
on January 1 of the previous fiscal year by 50.5 gallons and multiplying that product by the excise tax imposed under s. 78.01 (1)
on April 1 of the previous fiscal year.
An amount equal to the estimated snowmobile gas tax payment. The estimated snowmobile gas tax payment is the sum of the following amounts: