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State of Minnesota

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About the Minnesota State Board of Investment

The Minnesota State Board of Investment is responsible for the investment management of various retirement funds, trust funds, and cash accounts for the State of Minnesota.

Board Members

Investment Advisory Council Members

SBI Staff, Consultants, Custodians

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Constitutional and Statutory Authority
The Minnesota State Board of Investment (SBI) is established by Article XI of the Minnesota Constitution to invest all state funds. Its membership as specified in the Constitution is comprised of the Governor (who is designated as chair), State Auditor, Secretary of State, and Attorney General.

All investments undertaken by the SBI are governed by the prudent person rule and other standards codified in Minnesota Statutes, Chapter 11A and Chapter 356A, located on the Minnesota Legislature Revisor of Statutes's website.

Prudent Person Rule
The prudent person rule, as codified in Minnesota Statutes, Section 11A.09 requires all members of the Board, Investment Advisory Council, and SBI staff to "...act in good faith and ...exercise that degree of judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived therefrom." Minnesota Statutes, Section 356A.04 contains similar codification of the prudent person rule applicable to the investment of pension fund assets.

Authorized Investments
In addition to the prudent person rule, Minnesota Statutes, Section 11A.24 contains a specific list of asset classes available for investment, including common stocks, bonds, short term securities, real estate, private equity, and resource funds. The section prescribes the maximum percentage of fund assets that may be invested in various asset classes and contains specific restrictions to ensure the quality of the investments.

Investment Policies
Within the requirements defined by state law, the State Board of Investment, in conjunction with SBI staff and the Investment Advisory Council, establishes investment policies for all funds under its control. These investment policies are tailored to the particular needs of each fund and specify investment objectives, risk tolerance, asset allocation, investment management structure, and specific performance standards. These policies guide the on-going management of these funds and are updated periodically.