51-7a-201 - Investment of land grant trust funds.
51-7a-201. Investment of land grant trust funds.
(1) The state treasurer shall:
(a) invest land grant trust funds with the primary goal of providing for the stability,income, and growth of the principal;
(b) in making investment decisions, consider:
(i) general economic conditions;
(ii) the possible effect of inflation or deflation;
(iii) the role that each investment or course of action plays within the overall trustportfolio;
(iv) the expected total return from income and the appreciation of capital;
(v) other resources of the beneficiaries; and
(vi) needs for liquidity, regularity of income, and preservation or appreciation of capital;and
(c) diversify the investments of the trust funds, unless the state treasurer reasonablydetermines that the purposes of the trust funds are better served without diversifying.
(2) Nothing in this section requires a specific outcome in investing.
(3) The state treasurer may deduct any administrative costs incurred in managing trustfund assets from earnings before distributing them.
(4) (a) The state treasurer may employ professional asset managers to assist in theinvestment of assets of the trust funds.
(b) The treasurer may only provide compensation to asset managers from earningsgenerated by the funds' investments.
Enacted by Chapter 277, 2006 General Session