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Investments by charitable entities recently have been in the news and on the minds of fiduciaries. Yale's investment strategy of investing approximately 50 percent of its portfolio in "alternative investments," [...], The Uniform Prudent investor Act has been enacted in 11 states, and is being considered by many others. This article describes the investment flexibility available under the prudent investor standard, and then discusses certain state law provisions, such as the restrictions on the use of "income" and "principal," and tax considerations, such as inurement, unrelated business taxable income and the private foundation excise taxes, that fiduciaries of charitable entities must confront in taking advantage of this flexibility and deciding upon particular investment strategies and investments.

ADDED SEC. 105 explains that the normal rules governing the exercise of fiduciary powers apply to the new "power to adjust" conferred by Sec. 104(a). The purpose of the power [...]

The Uniform Prudent Investor Act (UPIA) and the Revised Uniform Principal and Income Act have been adopted by a number of states. The adoption provides states with the legal foundation to adapt to modern portfolio management strategies. The UPIA allows investment managers to make wider choices while maintaining existing standards of care. The Revised Uniform Principal and Income Act distinguishes between principal property and income property in ways complementary to modern portfolio management., According to a recent report by the Uniform Law Commissioners, there has been a good deal of activity in state legislatures this year to bring trust law into line with [...]

The volatile economic market of the 1990s created new standards for portfolio management. Delegation of investment responsibility was traditionally forbidden for investment managers but the Prudent Investor Act allows it as a discretionary fiduciary duty. The Act allows more freedom but insists on prudent actions. The Prudent Investor Act was adopted by more than 40 states., Clients demand an aggressive investment posture with access to many types of investments Once upon a time, the Common Law took a dim view of delegation of investment responsibility.(1) Indeed [...]

"Blue Cross and Blue Shield of North Carolina has taken responsibility for overcharging customers, physicians, and hospitals $15 million for emergency room claims. In December, the insurer paid a fine [...]