This bill aims to streamline the investment management of the University of Washington by disbanding its investment management company and transferring its investment portfolios to the Washington State Investment Board (WSIB). The legislature highlights the WSIB's superior performance and lower costs compared to the university's internal management, with the WSIB's expenses at 0.51% of assets under management and annualized returns of 8.9% since 1992, compared to the university's 0.90% expenses and 6.8% returns since 2005. The intent is to eliminate unnecessary costs and leverage the expertise of the WSIB for managing the university's financial assets.

To implement this change, the bill amends RCW 28B.20.130, allowing the University of Washington's board of regents to place gifts, grants, conveyances, bequests, and devises for investment with the WSIB. A new section is also added to chapter 43.33A RCW, explicitly stating that the WSIB may invest these assets as directed by the university's board of regents. This legislative action is designed to enhance the efficiency and effectiveness of the university's investment strategy while ensuring that the management of its financial resources aligns with best practices in institutional investment.

Statutes affected:
Original bill: 28B.20.130