(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 subchapter, 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:(1) 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(2) shall make a reasonable effort to verify facts relevant to the management and investment of the fund.
(1) 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
(2) shall make a reasonable effort to verify facts relevant to the management and investment of the fund.
(d) An institution may pool two or more institutional funds for purposes of management and investment.
(e) Except as otherwise provided by a gift instrument, the following rules apply:(1) In managing and investing an institutional fund, the following factors, if relevant, must 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.(2) Management and investment decisions about an individual asset must 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.(3) Except as otherwise provided by law other than this subchapter, an institution may invest in any kind of property or type of investment consistent with this section.(4) 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.(5) 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 subchapter.(6) A person that 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.
(1) In managing and investing an institutional fund, the following factors, if relevant, must 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.
(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.
(2) Management and investment decisions about an individual asset must 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.
(3) Except as otherwise provided by law other than this subchapter, an institution may invest in any kind of property or type of investment consistent with this section.
(4) 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.
(5) 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 subchapter.
(6) A person that 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.
(f) Except as provided under subsection (h) of this section, in managing and investing an institutional fund, an institution under § 28-69-802(4)(B), including without limitation a two-year or four-year state supported institution of higher education, shall not:(1) consider any of the goals under subdivisions (f)(2)(A) through (f)(2)(F) of this section, except as required to comply with subdivision (f)(2) of this section, regarding:(A) a possible investment by the institutional fund;(B) the selection of a service provider; or(C) the voting of shares by the institutional fund; or(2) direct or allow any service provider, in connection with its duties to the institutional fund, to act in a way that is aligned with any of the following goals beyond what is required by controlling law:(A) directly or indirectly eliminating, reducing, offsetting, or disclosing a reduction target for greenhouse gas emissions, including without limitation by restricting the exploration, production, utilization, transportation, sale, or manufacturing of timber, mining, agriculture, or fossil-fuel-based energy;(B) instituting a corporate board or employment composition target or criterion that incorporates a characteristic protected in this state under the Arkansas Civil Rights Act of 1993, § 16-123-101 et seq.;(C) providing access to or facilitating an abortion, gender-reassignment, or sex-reassignment medication or procedure;(D) restricting public access to a firearm, ammunition, or a component part or accessory of a firearm, including without limitation by restricting the distribution, sale, manufacturing, importing, marketing, or advertising of a firearm, ammunition, or a component part or accessory of a firearm;(E) reducing the amount of business conducted with any entity for the purpose of advancing any of the goals under this subdivision (f)(2); or(F) advancing the purposes of any international agreement related to any of the goals under this subdivision (f)(2).
(1) consider any of the goals under subdivisions (f)(2)(A) through (f)(2)(F) of this section, except as required to comply with subdivision (f)(2) of this section, regarding:(A) a possible investment by the institutional fund;(B) the selection of a service provider; or(C) the voting of shares by the institutional fund; or
(A) a possible investment by the institutional fund;
(B) the selection of a service provider; or
(C) the voting of shares by the institutional fund; or
(2) direct or allow any service provider, in connection with its duties to the institutional fund, to act in a way that is aligned with any of the following goals beyond what is required by controlling law:(A) directly or indirectly eliminating, reducing, offsetting, or disclosing a reduction target for greenhouse gas emissions, including without limitation by restricting the exploration, production, utilization, transportation, sale, or manufacturing of timber, mining, agriculture, or fossil-fuel-based energy;(B) instituting a corporate board or employment composition target or criterion that incorporates a characteristic protected in this state under the Arkansas Civil Rights Act of 1993, § 16-123-101 et seq.;(C) providing access to or facilitating an abortion, gender-reassignment, or sex-reassignment medication or procedure;(D) restricting public access to a firearm, ammunition, or a component part or accessory of a firearm, including without limitation by restricting the distribution, sale, manufacturing, importing, marketing, or advertising of a firearm, ammunition, or a component part or accessory of a firearm;(E) reducing the amount of business conducted with any entity for the purpose of advancing any of the goals under this subdivision (f)(2); or(F) advancing the purposes of any international agreement related to any of the goals under this subdivision (f)(2).
(A) directly or indirectly eliminating, reducing, offsetting, or disclosing a reduction target for greenhouse gas emissions, including without limitation by restricting the exploration, production, utilization, transportation, sale, or manufacturing of timber, mining, agriculture, or fossil-fuel-based energy;
(B) instituting a corporate board or employment composition target or criterion that incorporates a characteristic protected in this state under the Arkansas Civil Rights Act of 1993, § 16-123-101 et seq.;
(C) providing access to or facilitating an abortion, gender-reassignment, or sex-reassignment medication or procedure;
(D) restricting public access to a firearm, ammunition, or a component part or accessory of a firearm, including without limitation by restricting the distribution, sale, manufacturing, importing, marketing, or advertising of a firearm, ammunition, or a component part or accessory of a firearm;
(E) reducing the amount of business conducted with any entity for the purpose of advancing any of the goals under this subdivision (f)(2); or
(F) advancing the purposes of any international agreement related to any of the goals under this subdivision (f)(2).
(g) Subdivision (f)(2) of this section shall not apply if the institution under § 28-69-802(4)(B) determines that subdivision (f)(2) of this section would require the selection of a service provider that would have a materially negative financial impact on the institutional fund, provided that the institution under § 28-69-802(4)(B):(1) contracts with a service provider that most closely meets the requirements of subdivision (f)(2) of this section and would not have a materially negative financial impact on the institutional fund;(2) documents the determination of the institution under § 28-69-802(4)(B), along with documenting evidence supporting its determination through a description of the services of at least three (3) alternative service providers that were consulted and including without limitation a description of:(A) fees;(B) historical investment performance; and(C) evidence of compliance with subdivision (f)(2) of this section;(3) publicly posts notice seeking a service provider that would comply with subdivision (f)(2) of this section at the following times:(A) no later than sixty (60) days after the selection of a service provider that does not meet the requirements of subdivision (f)(2) of this section;(B) no later than sixty (60) days before the beginning of any following procurement period under which that service provider could be replaced; and(C) as part of any following procurement announcement under which that service provider could be replaced; and(4) reevaluates its determination at least annually under subdivisions (g)(1) — (3) of this section.
(1) contracts with a service provider that most closely meets the requirements of subdivision (f)(2) of this section and would not have a materially negative financial impact on the institutional fund;
(2) documents the determination of the institution under § 28-69-802(4)(B), along with documenting evidence supporting its determination through a description of the services of at least three (3) alternative service providers that were consulted and including without limitation a description of:(A) fees;(B) historical investment performance; and(C) evidence of compliance with subdivision (f)(2) of this section;
(A) fees;
(B) historical investment performance; and
(C) evidence of compliance with subdivision (f)(2) of this section;
(3) publicly posts notice seeking a service provider that would comply with subdivision (f)(2) of this section at the following times:(A) no later than sixty (60) days after the selection of a service provider that does not meet the requirements of subdivision (f)(2) of this section;(B) no later than sixty (60) days before the beginning of any following procurement period under which that service provider could be replaced; and(C) as part of any following procurement announcement under which that service provider could be replaced; and
(A) no later than sixty (60) days after the selection of a service provider that does not meet the requirements of subdivision (f)(2) of this section;
(B) no later than sixty (60) days before the beginning of any following procurement period under which that service provider could be replaced; and
(C) as part of any following procurement announcement under which that service provider could be replaced; and
(4) reevaluates its determination at least annually under subdivisions (g)(1) — (3) of this section.
(h) The requirements under subsection (f) of this section shall not apply to the investment and management of special gifts for which the intent of a donor was:(1) contrary to subsection (f) of this section; and(2) expressed in the gift instruction before January 1, 2024.
(1) contrary to subsection (f) of this section; and
(2) expressed in the gift instruction before January 1, 2024.