§ 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.
§ 24-2-618. Delegation of investment and management functions
(a) Trustees may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustees shall exercise reasonable care, skill, and caution in: (1) Selecting an agent; (2) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and (3) […]
§ 24-2-619. Language invoking standard of subchapter
The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this subchapter: (1) “Investments permissible by law for investment of trust funds”; (2) “Legal investments”; (3) “Authorized investments”; (4) “Using the judgment and care under the circumstances then prevailing that persons […]
§ 24-2-605. Investment authority and limitations — Fidelity bonds
(a) The boards of trustees of the respective retirement systems shall provide for a blanket fidelity bond of one million dollars ($1,000,000) covering the employees of the systems or such others as may be responsible for administering the funds. (b) The boards may pay the premiums for the bond from funds of the systems.
§ 24-2-606. Investment authority and limitations — Custodianship of assets
(a) The Treasurer of State shall be the legal custodian of the securities of the respective retirement systems. However, the systems may deposit with the Treasurer of State, in lieu of securities, safekeeping receipts or evidence of federal bookkeeping entries. (b) The financial institution or depository issuing the safekeeping receipts, unless issued by an agency […]
§ 24-2-607. Investment authority and limitations — Trust account
(a) In addition to the various retirement systems funds established as trust funds in the State Treasury, a bank trust fund or funds may be established and maintained in such depository bank or banks as may be designated by the boards of trustees of the respective retirement systems. (b) Each bank fund shall consist of […]
§ 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, […]