Texas House Bill HB3192

Texas 2011 - 82nd Regular

• Introduced: 3/10/11
• Refer: 3/18/11

Caption

Relating to the investment of the permanent university fund and other funds under the management and control of the board of regents of The University of Texas System.

Impact

The bill's impact on state laws would be significant as it introduces new definitions and guidelines related to emerging fund managers within the context of public university fund management. By expanding the criteria to include managers with assets under $5 billion, HB3192 encourages increased participation from smaller, potentially innovative financial firms. This can lead to a more competitive investment landscape and promote the development of funds that may align closely with the interests of the University of Texas System.

Summary

House Bill 3192 aims to amend the Texas Education Code with respect to the investment of the permanent university fund and other funds managed by the University of Texas System's Board of Regents. The primary focus of this bill is to enhance the approach to awarding investment contracts and acquiring financial services by prioritizing qualified emerging fund managers, thus fostering opportunities for smaller investment firms. This change is designed to diversify the investment portfolio while also potentially increasing returns for the fund.

Sentiment

The sentiment surrounding HB3192 is largely positive among proponents, who view the bill as a progressive step toward inclusivity within the financial investment sphere. Supporters argue that by allowing smaller, emerging fund managers to compete for contracts, the state can leverage diverse perspectives and investment strategies, potentially leading to higher yields. However, there may be concerns among established financial institutions about the increased competition and the broader implications this could have on traditional investment practices.

Contention

Notable points of contention regarding the bill may arise around the specifics of contract awards and the criteria for determining what constitutes a 'qualified' emerging fund manager. While supporters tout the benefits of increased participation from diverse fund managers, critics could argue about the potential risks associated with investing in less established firms. Additionally, there may be debates on whether the focus should exclusively be on emerging managers rather than a balanced approach that includes larger, seasoned investment firms.