67-19d-302 - State treasurer to follow "prudent investor" rule -- Standard of care.
67-19d-302. State treasurer to follow "prudent investor" rule -- Standard of care.
(1) The state treasurer shall invest and manage the trust fund assets as a prudent investorwould, by:
(a) considering the purposes, terms, distribution requirements, and other circumstancesof the trust fund; and
(b) exercising reasonable care, skill, and caution in order to meet the standard of care of aprudent investor.
(2) In determining whether or not the state treasurer has met the standard of care of aprudent investor, the judge or finder of fact shall:
(a) consider the state treasurer's actions in light of the facts and circumstances existing atthe time of the investment decision or action, and not by hindsight; and
(b) evaluate the state treasurer's investment and management decisions respectingindividual assets:
(i) not in isolation, but in the context of a trust fund portfolio as a whole; and
(ii) as a part of an overall investment strategy that has risk and return objectivesreasonably suited to the trust fund.
Enacted by Chapter 99, 2007 General Session