Kan. Admin. Regs. § 122-3-1 - Investment principles
Current through Register Vol. 40, No. 39, September 30, 2021
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122-3-1. Investment principles. (a) All state moneys which are available for investment shall be invested by the director of investments in a manner which will:
(1) be consistent with the prudent person standard established under K.S.A. 1995 Supp. 75-4209, and amendments thereto; and
(2) conform to provisions of applicable laws governing the investment of state moneys.
(b) The primary objectives of the board, in the following priority order, shall be considered by the director of investments in evaluating potential and existing investments.
(1) Safety. The foremost objective of investments shall be safety of the principal. Each investment of state moneys shall be undertaken in a manner that seeks to ensure preservation of capital.
(2) Liquidity. The second objective shall be to maintain sufficient liquidity to enable the state to meet all operating requirements which might be reasonably anticipated and meet the daily cash flow demands of the state.
(3) Return on investment. Each investment shall be designed with the objective of attaining a reasonable rate of return consistent with the above objectives.
(c) The investment portfolios shall be diversified so as to minimize exposure of state moneys to losses due to issuer defaults, market price changes, technical complications leading to temporary lack of liquidity, or other risks resulting from an overconcentration of assets in a specific maturity, a specific issuer, a specific geographical distribution, or a specific class of securities. (Authorized by and implementing K.S.A. 1995 Supp. 75-4232, as amended by L. 1996, Ch. 254, Sec. 26; effective, T-122-7-27-95, July 27, 1995; effective Nov. 17, 1995; amended Jan. 24, 1997.)