Michigan § 700.1503 - Portfolio strategy; risk and return objectives.
Full text of Michigan Michigan Compiled Laws § 700.1503 — Portfolio strategy; risk and return objectives., with citation guidance and answers to common questions.
§ 700.1503. Portfolio strategy; risk and return objectives.
A fiduciary's investment and management decisions with respect to individual assets shall be evaluated not in isolation, but rather in the context of the fiduciary estate portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fiduciary estate.
Among circumstances that a fiduciary must consider in investing and managing fiduciary assets are all of the following that are relevant to the fiduciary estate or its beneficiaries:
General economic conditions.
The possible effect of inflation or deflation.
The expected tax consequences of an investment decision or strategy.
The role that each investment or course of action plays within the overall portfolio, which may include financial assets, interests in closely-held enterprises, tangible and intangible personal property, and real property.
The expected total return from income and the appreciation of capital.
Other resources of the beneficiaries.
The need for liquidity, regularity of income, and preservation or appreciation of capital.
An asset's special relationship or special value, if any, to the purposes of the fiduciary estate or to 1 or more of the beneficiaries.
A fiduciary shall make a reasonable effort to verify facts relevant to the investment and management of fiduciary assets.
A fiduciary may invest in any kind of property or type of investment consistent with the standards of the Michigan prudent investor rule. A particular investment is not inherently prudent or imprudent.
A fiduciary who has special skill or expertise, or is named fiduciary in reliance upon the fiduciary's representation that the fiduciary has special skill or expertise, has a duty to use that special skill or expertise.
Frequently Asked Questions About Michigan § 700.1503
What does Michigan Compiled Laws § 700.1503 cover?
Section 700.1503 ("Portfolio strategy; risk and return objectives.") is part of the Michigan Compiled Laws, the codified statutory law of Michigan. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Michigan § 700.1503?
A common citation format is "Michigan Compiled Laws § 700.1503" (Michigan). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Michigan law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Michigan official source linked on this page or consult a licensed Michigan attorney.
How does Michigan § 700.1503 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Michigan can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Michigan.