State treasurer to follow "prudent investor" rule -- Standard of care

(1) The state treasurer shall invest and manage the trust fund assets as a prudent investor would, by: (a) considering the purposes, terms, distribution requirements, and other circumstances of the trust fund; and (b) exercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor. (2) In determining whether or not the state treasurer has met the standard of care of a prudent investor, the judge or finder of fact shall: (a) consider the state treasurer's actions in light of the facts and circumstances existing at the time of the investment decision or action, and not by hindsight; and (b) evaluate the state treasurer's investment and management decisions respecting individual assets: (i) not in isolation, but in the context of a trust fund portfolio as a whole; and (ii) as a part of an overall investment strategy that has risk and return objectives reasonably suited to the trust fund.