Introduced Version






HOUSE

RESOLUTION No. ___



Introduced by: Lytle


____________________________________





        A RESOLUTION encouraging the Indiana State Teachers' Retirement Fund and the Public Employees' Retirement Fund to allocate a part of their investment portfolios to private equity funds.
    

    Whereas, Access to investment capital is essential to new business investment and long-term economic growth;

    Whereas, More than 50% of all private businesses do not trade their stock on a public stock exchange;

    Whereas, Many small to medium-sized businesses and new start-up companies are unable to obtain access to the public equity markets for investment capital;


    Whereas, The growth rate for small and medium-sized private businesses exceeds the growth rate for large public corporations;

    Whereas, The rate of return for investments in private equities has exceeded the rate of return for investments in publicly traded equities and corporate bonds since 1969;

    Whereas, Thirty-seven states, including Illinois, Michigan, and Ohio, currently allocate some part of their public pension fund investments to private equities;

    Whereas, An investment portfolio asset allocation strategy that includes private equities can increase the total rate of return while reducing the overall investment risk, as measured by price volatility;

    Whereas, Investments in private equity funds by Indiana's public pension funds will increase the amount of investment capital available to Indiana businesses;

    Whereas, The state of Indiana will benefit economically through improving the availability of capital resources for entrepreneurs and other private business ventures, which will promote job creation and wage growth; and

    Whereas, The members of Indiana's public pension funds will benefit from higher returns on investments and lower investment risk: Therefore,

Be it resolved by the House of Representatives of the

General Assembly of the State of Indiana:


    SECTION 1. That the House of Representatives applauds the ongoing efforts by the Indiana State Teachers' Retirement Fund and the Public Employees' Retirement Fund to allocate and invest a part of their investment portfolios to private equity funds.
    SECTION 2. That the House of Representatives commends the trustees and directors of the funds for pursuing a well diversified investment strategy to the betterment of the citizens of the state of Indiana.
    SECTION 3. That the House of Representatives endorses the autonomy of the funds and supports their authority to take all

appropriate measures to fully discharge their responsibilities as fiduciaries under the prudent investor standard.
    SECTION 4. That the Principal Clerk of the House of Representatives transmit a copy of this resolution to the administrators of the Indiana State Teachers' Retirement Fund and the Public Employees' Retirement Fund.


20013421



HR 1598/DI 84

2001


Figure

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