LRB-3561/1
JTK:kmg:kaf
1995 - 1996 LEGISLATURE
May 16, 1995 - Introduced by Senators Leean, Ellis and Rude, by request of
Governor Tommy G. Thompson. Referred to Committee on Education and
Financial Institutions.
SB202,1,3
1An Act to amend 25.18 (2) (e) of the statutes;
relating to: delegation of the
2management and control of the fixed retirement investment trust and the
3variable retirement investment trust to investment advisers.
Analysis by the Legislative Reference Bureau
Currently, the investment board may contract with investment advisers for the
management and control of not more than 10% of the assets of the fixed retirement
investment trust or the variable retirement investment trust. These assets may be
invested in real estate, mortgages, equities, debt of foreign governments and debt of
corporations not organized under the laws of this state. Responsibility for
management and control of the balance of the assets of these trusts rests directly
with the board's employes. When retained, investment advisers are paid from the
income that would otherwise accrue to the trusts.
This bill permits the board to contract with investment advisers for the
management and control of not more than 25% of the assets of the fixed retirement
investment trust or the variable retirement investment trust.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB202, s. 1
4Section
1. 25.18 (2) (e) of the statutes is amended to read:
SB202,2,85
25.18
(2) (e) Contract with and delegate to investment advisers the
6management and control over assets from any fund or trust delivered to such
7investment advisers for investment in real estate, mortgages, equities, debt of
1foreign corporations and debt of foreign governments, and pay such advisers fees
2from the current income of the fund or trust being invested. No more than
10% 25% 3of the total assets of the fixed retirement investment trust or
10% 25% of the total
4assets of the variable retirement investment trust may be delivered to investment
5advisers. The board shall set performance standards for such investment advisers,
6monitor such investments to determine if performance standards are being met and
7if an investment adviser does not consistently meet the performance standards then
8terminate the contract with such investment adviser.
