Advisory board approves updated investment policy statement to align with new legislation and operational standardization

The advisory board voted to approve an updated investment policy statement (IPS) for the Legacy Fund client that standardizes format across client funds, incorporates recent legislative changes, and adds operational clarifications.

Scott Anderson explained that the changes are largely structural (a common template across about 28 client funds) and include content updates for recent legislation, a change to describe public equity as a single global allocation (while preserving domestic/international weightings internally), and a new statement on withdrawals/cash flows to improve operational clarity. Anderson said the changes were reviewed by the Attorney General’s office.

The revised IPS also adds corridor and benchmark guidance that allows public‑market proxies for private‑market allocations while private commitments are being drawn down — a practical change designed to avoid parking cash and to reduce transaction and operational risk while private markets grow. Treasurer Trevor Beattle and others asked clarifying questions about how private equity commitments will be proxied in the benchmark; staff explained the public‑equity proxy approach and the rationale for quarter‑benchmarking while private allocations ramp up.

Representative Busch moved approval of the redlined IPS at the client level so it can be brought to the State Investment Board for final review. The motion carried on roll call.

The committee instructed staff to bring the client‑approved IPS to the State Investment Board for its approval and noted that any future asset‑allocation or IPS updates tied to an asset‑allocation study will be processed through the same governance path.