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 investor would, by:
- (a) considering the purposes, terms, distribution requirements, and other circumstances of the trust fund; and
- (b) exercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor.
- (2) In determining whether or not the state treasurer has met the standard of care of a prudent investor, the judge or finder of fact shall:
- (a) consider the state treasurer’s actions in light of the facts and circumstances existing at the time of the investment decision or action, and not by hindsight; and
- (b) evaluate the state treasurer’s investment and management decisions respecting individual 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 objectives reasonably suited to the trust fund.
Enacted by Chapter 99, 2007 General Session