(a) The board shall provide for investing the assets of the fund. In investing the fund, the board has the same investment authority as that provided
by Section 11b, Article VII, Texas Constitution, or other law, to the board of regents of The University of Texas System with respect
to the investment of the Permanent University Fund. The board and the board of regents of The University of Texas System may contract
for the board of regents to manage and invest the assets of the fund, and for that
purpose the board may delegate its duties under this section to the board of regents.
(b) If the board does not contract with the board of regents of The University of
Texas System under Subsection (a) to manage and invest the assets of the fund, the
board shall contract with one or more private professional investment managers to
serve as plan manager and to invest the assets of the fund on behalf of the board. In selecting a manager, the board must:
(1) select a person who has served as a professional investment manager for at least
(2) evaluate each person considered for the position based on the historical net returns
of the person's professional investments and the consistency of the person's professional
investment returns over a period of at least five years; and
(c) In monitoring the manager's investments, the board shall ensure that investments
are made according to the standard of investment provided by this section. The plan manager has the same duties imposed on a plan manager by Section 54.705.
(d) The board shall develop written objectives concerning the investment of the assets
of the fund. The objectives may address desired rates of return, risks involved, investment time
frames, and any other relevant considerations.
(e) The board may specify in a contract under this section that the plan manager is
required to establish and maintain an Internet website through which a purchaser may
monitor the account to which the purchaser's prepaid tuition contract money is assigned.
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