California Code, Government Code - GOV § 45308.55

Notwithstanding Section 45308.1 the board may also invest in any stocks or shares of a diversified management investment company registered under the “Investment Company Act of 1940”  1 which has total assets of at least fifty million dollars ($50,000,000); except that the total investment in such stocks and shares, together with stocks and shares of all other corporations, may not exceed 25 percent of the assets of such fund determined on the basis of the cost of the stocks or shares.