138:, states should have repealed legal list statutes, which specified permissible investments types. (However, guardianship and conservatorship accounts generally remain limited by specific state law.) In those states which adopted part or all of the Uniform Prudent Investor Act, investments must be chosen based on their suitability for each account's beneficiaries or, as appropriate, the customer. Although specific criteria for determining "suitability" do not exist, it is generally acknowledged, that the following items should be considered as they pertain to account beneficiaries:
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are not per se considered imprudent. However, while the fiduciary is now permitted, even encouraged, to develop greater flexibility in overall portfolio management, speculation and outright risk taking is not sanctioned by the rule either, and they remain subject to criticism and possible liability.
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A trust account's entire investment portfolio is considered when determining the prudence of an individual investment. Under the
Prudent Investor Act standard, a fiduciary would not be held liable for individual investment losses, so long as the investment, at the time of acquisition, is consistent
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No category or type of investment is deemed inherently imprudent. Instead, suitability to the trust account's purposes and beneficiaries' needs is considered the determinant. As a result, junior lien loans, investments in limited partnerships, derivatives, futures, and similar investment vehicles,
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to utilize modern portfolio theory to guide investment decisions and requires risk versus return analysis. Therefore, a fiduciary's performance is measured on the performance of the entire portfolio, rather than individual investments.
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Prudent
Investor and TOLI: Part 1 - The Prudent Investor Act, Modern Portfolio Theory & Trust-Owned Life Insurance (TOLI)
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Prudent
Investor and TOLI: Part 2 - Factors Determining TOLI Pricing, Performance & Suitability
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Investor and TOLI: Part 3 - Establishing a Basis for ILIT Compliance (and Best-Practices)
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A fiduciary is permitted to delegate investment management and other functions to third parties.
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UPIA Fiduciary Tools for Trust-Owned Life
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Fiduciary
Requirements of Registered Investment Advisors (Post 1992)
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is explicitly required as a duty for prudent fiduciary investing.
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with the overall portfolio objectives of the account.
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Consumer
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118:or Substantially Similar include:
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