The agency that oversees investments for the University of Texas system may be required to open its meetings to the public under a bill the House tentatively approved Wednesday. The University of Texas Investment Management Co., which has been allowed to meet privately under state law, would be considered a governmental body and subject to the Open Meetings Act if the bill passes. Rep. Ron Wilson, D-Houston, who wrote the new requirement, said open meetings are necessary to prevent bad decisions on public money investments from being made. The fund, like other state government investment funds, has seen the value of its portfolio drop in recent months with the stock market's downturn. Mr. Wilson said privacy of investment deliberations played a role in the poor performance.
Public investments have to be discussed in a public arena.
The investment management company is a private, nonprofit firm established to oversee the university system's multibillion-dollar portfolio. Firm executives did not return a telephone call for comment Wednesday. Earlier this week, lawmakers reported a drop in the state's largest investment funds, which help pay for education, health care and retirement benefits for millions of Texans. The fund management company has been under scrutiny in recent years over its investment practices. At issue has been the secretive nature of the management company's private portfolio management.