Investment of Risk Management Fund.

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  • (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.
  • (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.
  • (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.
    • (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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