7.0. EDSR 04-12-2004 - Laserfiche WebLink

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4111 Invest in Minnesota continued from page 1 of state.Our progressive neighbor to the east has allocated up to$120 million for tablished principle of fiduciary responsi- this very purpose—a Wisconsin only di- bility is that pension funds invest about 95 rected venture investment fund.Yet,here percent in investment grade stocks and we sit with similar economic develop- bonds.The other five percent should be in ment goals but with no comparable in- "alternative investments"which includes vestment strategy to offer to our own lo- real estate and venture capital funds. By cal companies within our borders. his own admission in the August 2003 is- sue of Twin Cities Business Monthly,Mr. This disgusting scenario has almost played Howard Bicker of the Minnesota state pen- itself out here in Elk River.A local high- sion fund acknowledged a goal of allocat- tech company started in our Business In- ing up to fifteen percent of its assets into cubator,grew enough to locate in a research those alternative investments to enhance facility in the City and is now looking to returns to the overall pension fund. expand its operation further with a plan to build a new 50,000 square foot facility In 2003, the state pension fund totaled employing 50—75 people,many of whom $39.0 billion.Total commitments to alter- would attract salaries of up to $75,000. native investments were up to$2.9 billion. They have been trying mightily to secure a Fifteen percent would obviously allow a second round of investment to make this significant amount of money to be avail- happen. The local investment markets are able for investments.I would postulate this dry because the venture fund managers scenario;of the$2.9 billion already com- describe high-tech as"risky"(I thought that mitted to alternative investments,dedicate was a definition of a`venture'fund) and 1.0%of the funds,or$29 million,into a their product is not"a medical device"(an venture capital fund that would be avail- apparent albatross for any non-medical able for investment only into early stage start up company in Minnesota). Minnesota companies. This amount would not diminish in any material way the pm- Let's stop this nonsense and put the pres- dent investor principles of the fund and sure on our venture capital funds to cre- would continue to protect our pensioners ate a mechanism for careful and prudent and provide a well balanced return on in- investment into Minnesota companies. vestment to their entitlement. Yes, we have learned that our economy and our businesses are poised to take the Although the state pension fund does in- next step in expansion;why can't we take vest in venture capital funds,these invest- the logical step to make sure we keep ments go into capital markets across the these businesses in our state and our com- country and do not preclude investing in munity. The Value Proposition is simple; a venture fund based for example in Cali- by creating a forward thinking posture fornia or Massachusetts.Those"coastal" through a slight change in investment funds then come here,invest in early stage policy, business will have a recognized Minnesota companies,and demand that vehicle to expand their operations,pro- the company move to their location — duction and employment,and we become thereby removing a growing Minnesota capable of protecting and enhancing our company,its employees and tax base out assets and our community.