Alaska State Legislature
News from the House Majority

Jerry Ritter, House Majority Press Secretary
State Capitol
Juneau, AK 99801
Phone: (907) 465-3804
web site: http://www.akrepublicans.org
Actuality line: 1-800-478-6540

Legislature Approves Measure to Benefit Investors

Uniform Prudent Investor Act Should Result in Better Returns

For Immediate Release: May 1, 1998 Contact: Rep. Joe Ryan at (907) 465-3875.

Juneau -- The Alaska Senate Friday joined the House in unanimously approving House Bill 321, the Uniform Prudent Investor Act. HB 321 reverses common law rules that restrict the investment powers of trustees.

"The new act requires a trustee to invest as a prudent investor would, using reasonable care, skill, and caution in light of the objectives and risk tolerance of the individual trust," said Representative Joe Ryan (R-Anchorage), sponsor of the bill. "Within the scope of the their powers and duties, trustees can choose to invest in any kind of asset that meets the objective of the specific trust," Ryan said.

The Uniform Prudent Investor Act means that trusts are likely to achieve better results than is the case now. In addition trustees can protect the body of the trust better through diversification of assets.

"Diversification of assets now becomes an obligation," said Ryan. "In addition, the trustees can now acquire investment services to enhance their own knowledge and skill by delegating the actual investment responsibilities to experts," Ryan said.

The Uniform Prudent Investor Act would also bring Alaska law into compliance with federal laws and those of other states, which will greatly ease interstate investments.

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