SB 449 - This act creates the "Missouri Investment Trust" which shall manage and invest funds transferred pursuant to a trust agreement between the State Treasurer and the investment trust. The trust would receive up to one hundred million dollars of appropriated funds which are determined to be not needed for the current operating expenses of the state.

Funds within the trust can be invested in the manner authorized in the Missouri Constitution, Article IV, Section 15, except that leveraging, speculation and investment in derivative securities is prohibited.

The trust would be managed by a board of trustees chaired by the Treasurer. Other members include: The Commissioner of Administration, a member appointed by the Speaker of the House, a member appointed by the President Pro Tem of the Senate and three individuals with applicable knowledge appointed by the Governor. The investment trust would be authorized to enter into agreements, hire employees and perform other services appropriate to its fiduciary responsibilities.

This act further requires the Treasurer and every political subdivision of the state responsible for the investment of state funds to adopt a written investment policy outlining a commitment to investment in safe, highly rated investments with a prohibition against leveraging, speculation and derivative securities.

DENISE GARNIER