State Investment Board

Overview

The State Investment Board (SIB) is established in Chapter 21-10 of the North Dakota Century Code (NDCC) (requires Adobe Acrobat Reader).

The SIB has statutory responsibility for the administration of the investment programs of several funds including the Public Employees Retirement System (PERS), The Teachers' Fund for Retirement (TFFR) and the Workforce Safety & Insurance Fund. The SIB also maintains contractual relationships for investment management with certain political subdivisions. The 11 member Board includes the Lt. Governor, State Treasurer, State Insurance Commissioner, Executive Director of Workforce Safety & Insurance, Land Commissioner, three representatives of PERS and three representatives of TFFR.

All funds invested under the direction of the State Investment Board (SIB) follow the 'Prudent Investor Rule.' Investments are managed exclusively in the interest of meeting the funds' individual objectives. Professional investment managers, consultants and custodians are retained to assist in the implementation of the investment program. The Retirement and Investment Office (RIO) assists the SIB in carrying out its responsibilities for investment program administration.

Investment Process

The ND State Investment Board believes that an investment program must be built and managed like any good business, with a clear statement of mission, overall objectives, roles and responsibilities, and policies and guidelines. Major issues include:

Asset allocation targets:

• Setting appropriate benchmarks.
• Finding the right managers.
• Monitoring the program.
• Searching for appropriate new opportunities.

To insure rigorous attention to all aspects of the investment program, the SIB follows an established investment process. This process involves three phases:

• Investment policy development/modification.
• Implementation/monitoring.
• Evaluation.