§ 24-2-608. Investment authority and limitations — Arkansas-related investments
(a) In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing funds held by each of the trusts, fiduciaries administering the systems shall manage the funds so as to favorably impact the economic condition of and maximize capital investment in the State of Arkansas when appropriate investment alternatives are available. (b) It is the intention of […]
§ 24-2-609. Registration of securities in name of nominee — Powers and duties of nominee
(a) The boards of trustees of the various state retirement systems are authorized to register stocks, bonds, notes, and other securities held by and for the systems in the name of a designated nominee. (b) Such action as is necessary to establish a nominee and a nominee agreement may be taken. (c) The nominee agreement […]
§ 24-2-610. Prudent investor rule
(a) Except as otherwise provided in subsection (b) of this section, trustees who invest and manage trust assets owe a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in §§ 24-2-610 — 24-2-619. (b) (1) The prudent investor rule, a default rule, may be expanded, restricted, eliminated, […]
§ 24-2-611. Standard of care — Portfolio strategy — Risk and return objectives
(a) Trustees shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustees shall exercise reasonable care, skill, and caution. (b) The trustees’ investment and management decisions respecting individual assets must be evaluated not in isolation […]
§ 24-2-612. Diversification
Trustees shall diversify the investments of the trust unless the trustees reasonably determine that, because of special circumstances, the purposes of the trust are better served without diversifying.
§ 24-2-613. Duties at inception of trusteeship
(a) Within a reasonable time after accepting a trusteeship or receiving trust assets, trustees shall review the trust assets and make and implement decisions concerning the retention and disposition of assets in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust and with the […]
§ 24-2-614. Loyalty
Trustees shall invest and manage the trust assets solely in the interest of the members and benefit recipients of the trust.
§ 24-2-615. Impartiality
If a trust has two (2) or more beneficiaries, the trustees shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.
§ 24-2-616. Investment costs — Limitations on investment authority
(a) In investing and managing trust assets, trustees may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee. (b) Trustees may delegate investment functions to an agent that a prudent trustee of comparable skills could properly delegate as provided in […]
§ 24-2-617. Reviewing compliance
Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of the trustees’ decisions or actions and is not determined by hindsight.