63A-4-208. Investment of Risk Management Fund.
(1) |
The state treasurer shall invest the assets of the Risk Management Fund created under Section 63A-4-201 with the primary goal of providing for the stability, income, and growth of the principal. |
Terms Used In Utah Code 63A-4-208
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(2) |
Nothing in this section requires a specific outcome in investing. |
(3) |
The state treasurer may deduct any administrative costs incurred in managing fund assets from earnings before distributing the earnings. |
(4) |
(a) |
The state treasurer may employ professional asset managers to assist in the investment of the assets of the funds. |
(b) |
The treasurer may only provide compensation to asset managers from earnings generated by the funds’ investments. |
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(5) |
(a) |
The state treasurer shall invest and manage the assets of the funds as a prudent investor would by:
(i) |
considering the purposes, terms, distribution requirements, and other circumstances of the funds; and |
(ii) |
exercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor. |
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(b) |
In determining whether the state treasurer has met the standard of care of a prudent investor, the judge or finder of fact shall:
(i) |
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 |
(ii) |
evaluate the state treasurer’s investment and management decisions respecting individual assets:
(A) |
not in isolation, but in the context of a fund portfolio as a whole; and |
(B) |
as a part of an overall investment strategy that has risk and return objectives reasonably suited to the funds. |
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Enacted by Chapter 33, 2021 General Session