51-7b-202. Prudent investor standard -- Determining whether standard met.
179 words·~1 min read·
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51-7b-202. Prudent investor standard -- Determining whether standard met.
(1)The state treasurer shall invest and manage the permanent state trust fund assets as a prudent investor would, by:
(a)considering the purposes, terms, distribution requirements, and other circumstances of the permanent state 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 the state treasurer has met the standard of care of a prudent investor, a finder of fact shall:
(a)consider the state treasurer's investment decision or action in light of the facts and circumstances existing at the time of the 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 the permanent state 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 permanent state trust fund.
Enacted by Chapter 211 , 2013 General Session