If you have questions concerning the report, please contact Jan Abrahamsen, the Director of the State Bureau of Procurement, at (608)266-0974.
Sincerely,
mark d. bugher
Secretary
Referred to the committee on Economic Development, Housing and Government Operation
State of Wisconsin
Investment Board
February 12, 1997
The Honorable, The Legislature:
Section
25.17(14r) of the Statutes, as created by
1995 Wisconsin Act 274, requires that the State of Wisconsin Investment Board (SWIB) submit a report to the Joint Committee on Audit, Joint Committee on Finance, and Chief Clerks of each House summarizing any change in the Board's investment policies, upon adoption of the change.
In
1995 Wisconsin Act 403, the Legislature established a college tuition prepayment program which has been named "EdVest Wisconsin." The Department of Administration (DOA) was given responsibility to establish and operate the program. SWIB was given the responsibility to invest assets of the trust fund which will receive revenues from the sale of tuition units.
Act 403 directs that SWIB invest the assets of the trust fund in "investments with maturities and liquidity that are appropriate for the needs of the fund." SWIB will receive a quarterly report from DOA projecting future cashflow needs. An actuary has been retained by DOA to assist in this process.
On February 7, 1997, the Board of Trustees adopted investment guidelines for the trust fund. The assets of the fund will be managed in a structured, fixed income portfolio matched to program liabilities. The guidelines adopted by the Board permit investment in U.S. Treasury and government agency issues, municipal bonds and corporate bonds rated "A" or better. Short-term cash assets of the fund will be managed in the State Investment Fund.
Tuition Trust Fund
Criteria Approved for Investment
The person designated by the Executive Director to manage the Fund may purchase and sell publicly traded fixed income securities, subject to concurrence of the Executive Director or Assistant Executive Director, within the following guidelines:
Quality: Issues rated "A" or better.
Sector: U. S. Treasury and government agencies - No Limit.
Corporate Treasury and government agencies - Overall no limit. Exposure to a particular industry is limited to no more than double that industry's percentage in the M.L. All Corporate Index (COAO).
Municipal treasury and government agencies - Overall No Limit.
Issuer: 5% maximum per corporate or municipal issuer.
These relatively conservative investment guidelines are consistent with the approach discussed with the Legislature when Act 403 was being developed and with preliminary information which DOA has provided to the public about how program funds will be managed.
S83
Please feel free to contact me at 266-9451 if you have any questions about the investment guidelines. Other questions about the program should be directed to Mr. Marty Olle (264-7886), EdVest Wisconsin Program Manager at DOA.
Sincerely,
Patricia Lipton
Executive Director
__________________
State of Wisconsin
Office of the Governor
February 11, 1997
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Pope
, Carol Vollmer,
of Brookfield, as a member of the Prison Industries Board, to serve for the interim term ending May 1, 1998 and for the full term ending May 1, 2001.
Sincerely,
TOMMY G. THOMPSON
Governor
Read and referred to committee on Health, Human Services, Aging, Corrections, Veterans and Military Affairs.
State of Wisconsin
Office of the Governor
February 11, 1997
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Tomfohrde, Wayne,
of Osceola, as a member of the Minnesota-Wisconsin Boundary Area Commission, to serve for the interim term ending September 25, 2000.
Sincerely,
TOMMY G. THOMPSON
Governor
Read and referred to committee on Agriculture and Environmental Resources.
__________________
__________________
The committee on Judiciary, Campaign Finance Reform and Consumer Affairs reports and recommends:
Relating to reimbursement from parents of juveniles.
No action taken.
Relating to partial indigency.
No action taken.
Lynn Adelman
Chairperson
