2016 Arizona Revised Statutes
Title 35 - Public Finances
§ 35-314 Equity investment of trust and treasury monies; definition

35-314. Equity investment of trust and treasury monies; definition

A. The state treasurer may invest and reinvest monies in equity securities for any fund for which equity investment is authorized.

B. The state treasurer shall exercise prudence, judgment and care under the prevailing circumstances when investing in equity securities and may reduce the portion of equity securities held by any fund in order to avoid a reduction in current return on investments.

C. Equity securities that are eligible for purchase are restricted to stocks listed on any national stock exchange or eligible for trading through the United States national association of securities dealers automated quotation system, or successor institutions, except as may be prohibited by general criteria or by a restriction on investment in a specific security adopted pursuant to this section.

D. Not more than five per cent of a fund at cost may be invested in equity securities issued by the same institution, agency or corporation, other than securities issued as direct obligations of and fully guaranteed by the United States government or any of its agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities.

E. For the purposes of this section, " equity securities" means shares of stock, certificates of stock or any other evidence of equity interest in a corporation. Equity securities do not include exchange traded products whose underlying investments are fixed income securities that are allowed by state law.