§ 17-7-303 — Standard of conduct in managing and investing institutional fund

Wyoming § 17-7-303

• Jurisdiction: Wyoming
• Title 17: Corporations, Partnerships and Associations
• Ch. 7: CHARITABLE, EDUCATIONAL, RELIGIOUS AND OTHER
• Art. 3: UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS

Text

(a) Subject to the intent of a donor expressed in a gift
instrument, an institution, in managing and investing an
institutional fund, shall consider the charitable purposes of
the institution and the purposes of the institutional fund.
(b) In addition to complying with the duty of loyalty
imposed by law other than this act, each person responsible for
managing and investing an institutional fund shall manage and
invest the fund in good faith and with the care an ordinarily
prudent person in a like position would exercise under similar
circumstances.
(c) In managing and investing an institutional fund, an
institution:
(i) May incur only costs that are appropriate and
reasonable in relation to the assets, the purposes of the
institution and the skills available to the institution; and
(ii) Shall make a reasonable effort to verify facts
relevant to the management and investment of the fund.
(d) An institution may pool two (2) or more institutional
funds for purposes of management and investment.
(e) Except as otherwise provided by a gift instrument, the
following rules shall apply:
(i) In managing and investing an institutional fund,
the following factors if relevant shall be considered:
(A) General economic conditions;
(B) The possible effect of inflation or
deflation;
(C) The expected tax consequences, if any, of
investment decisions or strategies;
(D) The role that each investment or course of
action plays within the overall investment portfolio of the
fund;
(E) The expected total return from income and
the appreciation of investments;
(F) Other resources of the institution;
(G) The needs of the institution and the fund to
make distributions and to preserve capital; and
(H) An asset's special relationship or special
value, if any, to the charitable purposes of the institution.
(ii) Management and investment decisions about an
individual asset shall be made not in isolation but rather in
the context of the institutional fund's portfolio of investments
as a whole and as a part of an overall investment strategy
having risk and return objectives reasonably suited to the fund
and to the institution;
(iii) Except as otherwise provided by law other than
this act, an institution may invest in any kind of property or
type of investment consistent with this section;
(iv) An institution shall diversify the investments
of an institutional fund unless the institution reasonably
determines that, because of special circumstances, the purposes
of the fund are better served without diversification;
(v) Within a reasonable time after receiving
property, an institution shall make and carry out decisions
concerning the retention or disposition of the property or to
rebalance a portfolio in order to bring the institutional fund
into compliance with the purposes, terms and distribution
requirements of the institution as necessary to meet other
circumstances of the institution and the requirements of this
act;
(vi) A person who has special skills or expertise, or
is selected in reliance upon the person's representation that
the person has special skills or expertise, has a duty to use
those skills or that expertise in managing and investing
institutional funds.