uniform prudent investor act
Uniform Prudent Investor Act. A 1994 model statute that sets a standard for the acts of a trustee, adopts a prudent-investor standard, and prefers a modern portfolio approach to investing. • Under the Uniform Prudent Investor Act, the trustee is given significant power to delegate the selection of investments. The prudent-investor standard replaces the prudent-person standard of investing. The portfolio approach provides that no investment will be viewed in isolation; rather, it will be viewed as part of the entire portfolio. Under this theory, even though an investor loses trust assets on an investment, if there is an overall positive return, the investor will not be liable to the beneficiaries. — Abbr. UPIA. See PRUDENT-INVESTOR RULE.
