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Uniform Prudent Investor Act
{{Short description, Fiduciary Requirements of Registered Investment Advisors (Post 1992) ''The Uniform Prudent Investor Act'' (UPIA), which was adopted in 1992 by the American Law Institute's Third Restatement of the Law of Trusts ("Restatement of Trust 3d"), reflects a "modern portfolio theory" and "total return" approach to the exercise of fiduciary investment discretion. Approach This approach allows fiduciaries 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. Adoption As of May 2004, the ''Uniform Prudent Investor Act'' has been adopted in 44 States and the District of Columbia Washington, D.C., formally the District of Columbia and commonly known as Washington or D.C., is the capital city and Federal district of the United States, federal district of the United States. The city is on ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
American Law Institute
The American Law Institute (ALI) is a research and advocacy group of judges, lawyers, and legal scholars limited to 3,000 elected members and established in 1923 to promote the clarification and simplification of United States common law and its adaptation to changing social needs. Additional goals noted were "to secure the better administration of justice, and to encourage and carry on scholarly and scientific legal work." Members of ALI include law professors, practicing attorneys, judges and other professionals in the legal industry. The committee that issued report recommending the Institute be formed consisted of some of the best known members of these groups, e.g. Elihu Root, George W. Wickersham, William Draper Lewis, Joseph Henry Beale, Benjamin N. Cardozo, Arthur Corbin, Ernst Freund, Learned Hand, Roscoe Pound, Harlan F. Stone, John Henry Wigmore, and Samuel Williston. ALI writes documents known as "treatises", which are summaries of generally state court c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trust 3d
Trust often refers to: * Trust (social science), confidence in or dependence on a person or quality It may also refer to: Business and law * Trust (law), a legal relationship in which one person holds property for another's benefit * Trust (business), the combination of several businesses under the same management to prevent competition * Investment trust, a form of investment fund Arts, entertainment, and media * The Trust, a fictional entity in the ''Stargate'' franchise * Trust, a computer in '' Raised by Wolves'' * ''Trust'' (novel), 2022 novel by Hernan Diaz * ''Trust'' (magazine), a free tri-annual investment trust magazine Films * ''The Trust'' (1915 film), a lost silent drama film * ''Trust'' (1976 film), a Finnish-Soviet historical drama * ''Trust'' (1990 film), a dark romantic comedy * ''The Trust'' (1993 film), an American drama about a murder in 1900 * ''Trust'' (1999 film), a British television crime drama * ''Trust'', a 2009 film starring Jamie Luner and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Modern Portfolio Theory
Modern portfolio theory (MPT), or mean-variance analysis, is a mathematical framework for assembling a portfolio of assets such that the expected return is maximized for a given level of risk. It is a formalization and extension of Diversification (finance), diversification in investing, the idea that owning different kinds of financial assets is less risky than owning only one type. Its key insight is that an asset's risk and return should not be assessed by itself, but by how it contributes to a portfolio's overall risk and return. The variance of return (or its transformation, the standard deviation) is used as a measure of risk, because it is tractable when assets are combined into portfolios. Often, the historical variance and covariance of returns is used as a proxy for the forward-looking versions of these quantities, but other, more sophisticated methods are available. Economist Harry Markowitz introduced MPT in a 1952 paper, for which he was later awarded a Nobel Memorial ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Total Return
The total return on a portfolio of investments takes into account both the capital appreciation on the portfolio, and the income received on the portfolio. The income typically consists of interest, dividends, and securities lending fees. This contrasts with the price return, which takes into account only the capital gain on an investment. In 2010 an academic paper highlighted this issue found with most web charts in the 'compare' mode, and was published in the Journal of Behavioral Finance. The discrepancy between total return charts and "price only" charts was later brought out in the Wall Street Journal. Stock and bond funds provide annual Total Return values summarizing the last ten years of operation. Total Return assumes that dividends and interest are reinvested in the funds. A reasonably accurate equation for the percent Total Return in a year of any security is the sum of the percent gain (or loss, a negative percent) over the year in the security value, plus the annual ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fiduciaries
A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (legal person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for example, a corporate trust company or the trust department of a bank, acts in a fiduciary capacity to another party, who, for example, has entrusted funds to the fiduciary for safekeeping or investment. Likewise, financial advisers, financial planners, and asset managers, including managers of pension plans, endowments, and other tax-exempt assets, are considered fiduciaries under applicable statutes and laws. In a fiduciary relationship, one person, in a position of vulnerability, justifiably vests confidence, good faith, reliance, and trust in another whose aid, advice, or protection is sought in some matter... In such a relation, good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
District Of Columbia
Washington, D.C., formally the District of Columbia and commonly known as Washington or D.C., is the capital city and Federal district of the United States, federal district of the United States. The city is on the Potomac River, across from Virginia, and shares land borders with Maryland to its north and east. It was named after George Washington, the first president of the United States. The district is named for Columbia (personification), Columbia, the female National personification, personification of the nation. The Constitution of the United States, U.S. Constitution in 1789 called for the creation of a federal district under District of Columbia home rule, exclusive jurisdiction of the United States Congress, U.S. Congress. As such, Washington, D.C., is not part of any U.S. state, state, and is not one itself. The Residence Act, adopted on July 16, 1790, approved the creation of the Capital districts and territories, capital district along the Potomac River. The city ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Prudent Man Rule
The prudent man rule is based on common law stemming from the 1830 Massachusetts court formulation '' Harvard College v. Amory''. The prudent man rule, written by Massachusetts Justice Samuel Putnam (1768–1853), directs trustees "to observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety of the capital to be invested." Under the prudent man rule, when the governing trust instrument is silent concerning the types of investments permitted, the fiduciary is required to invest trust assets as a "prudent man" would invest his own property with the following factors in mind: *the needs of beneficiaries; *the need to preserve the estate (or corpus of the trust); and *the amount and regularity of income. The application of these general principles depends on the type of account administered. The prudent m ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Diversification (finance)
In finance, diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common path towards diversification is to reduce financial risk, risk or volatility (finance), volatility by investment, investing in a variety of assets. If asset prices do not change in perfect synchrony, a diversified Portfolio (finance), portfolio will have less variance than the weighted mean, weighted average variance of its constituent assets, and often less volatility than the least volatile of its constituents. Diversification is one of two general techniques for reducing investment risk. The other is hedge (finance), hedging. Examples The simplest example of diversification is provided by the proverb "Don't put all your eggs in one basket". Dropping the basket will break all the eggs. Placing each egg in a different basket is more diversified. There is more risk of losing one egg, but less risk of losing all of them. On the other h ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Regulation In The United States
Finance refers to monetary resources and to the study and discipline of money, currency, assets and liabilities. As a subject of study, is a field of Business Administration wich study the planning, organizing, leading, and controlling of an organization's resources to achieve its goals. Based on the scope of financial activities in financial systems, the discipline can be divided into personal, corporate, and public finance. In these financial systems, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. Due to its wide scope, a broad range of subfields exists within finance. Asset-, money-, risk- and investment management aim to maximize value and minimize volatility. Financial analysis assesses the viability, stability, an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
