Florida Administrative Code › 19 - STATE BOARD OF ADMINISTRATION › 19 - Departmental › Chapter 19-4 - RULES AND REGULATIONS GOVERNING THE INVESTMENT POLICIES AND PROCEDURES OF THE STATE BOARD OF ADMINISTRATION › Section 19-4.0031 - General Policies and Review Procedures for Investments

Current through Reg. 50, No. 138; July 16, 2024
(1) The Fund shall be invested pursuant to
				the provisions set forth in the Florida Statutes, including but not limited to
				Sections  215.47 and
				 215.44, F.S. The Board shall
				approve an Investment Policy Statement which includes, among other items, the
				investment objectives of the Fund and evaluation criteria necessary to measure
				the investment performance of the Fund.
(2) The Executive Director shall present to
				the Investment Advisory Council a continuing review and study of its general
				portfolio strategy to meet the objectives of the Fund. A continuous review of
				the overall economic conditions shall be included.
(3) Changes in security holdings are the
				responsibility of the Executive Director, and must conform with standards of
				professional investment practice and prudence.
(4) The Executive Director shall govern the
				day-to-day operation of the various aspects of portfolio management consistent
				with the Investment Policy Statement.
(5) The Executive Director shall from time to
				time, or when directed by the Investment Advisory Council or the Board, present
				recommendations to the Board concerning investment activity not otherwise
				authorized by Sections 215.44-.53, F.S. Such new investment activity is
				authorized under authority in Section
				 215.47(6), F.S.
				The Executive Director shall monitor investment authority so granted, and
				ensure that the total of such investments does not exceed the statutory
				limit.
(6) For the purpose of
				implementing Section  215.47, F.S., any security,
				interest or investment vehicle or obligation issued by a private entity, trust
				or organization holding investments authorized by Section
				 215.47, F.S., will be considered
				an investment authorized by Section
				 215.47, F.S., provided that the
				predominant function of the entity, trust or organization is to hold and/or
				manage said underlying investments.
(7) The term "consistent with sound
				investment policy, " which is contained in Section
				 121.153(1)(c),
				F.S.; the term "consistent with the investment policy set forth in Sections
				 215.44(2)  and
				 215.47(10),
				F.S." which is contained in Section
				 121.153(2)(a),
				F.S.; and terms of similar meaning, which exist or shall exist in the laws of
				Florida, relating to the responsibility of the Board to perform its investment
				functions in accordance with accepted fiduciary standards, or words of like
				import, shall mean that the Board, in addition to complying with the aforecited
				laws, in performing its investment duties in accordance with these laws shall
				comply with the fiduciary standards set forth in the Employee Retirement Income
				Security Act of 1974 at 29
				U.S.C. s. 1104(a)(1)(A) through
				(C), to wit: A fiduciary shall discharge his
				duties with respect to a plan solely in the interest of the participants and
				beneficiaries and
(a) For the exclusive
				purpose of:
1. Providing benefits to
				participants and their beneficiaries; and
2. Defraying reasonable expenses of
				administering the plan;