Broker Check


UPMIFA or the “Uniform Prudent Management of Institutional Funds Act”

While UPMIFA primarily addresses the management and investment of endowment funds, it articulates a standard of care that is applicable to all “Institutional funds” which is defined as a fund held by an institution exclusively for charitable purposes.

The standard of care includes:

  • Duty to act in good faith and with the care of an ordinary prudent person.
  • Duty to diversify investments
  • Duty to incur only appropriate and reasonable costs
  • Duty to analyze investments in the context of the total portfolio and overall risk-reward objectives
  • Duty to verify facts relevant to the management and investment of the fund
  • Allows investments of any kind that is not inconsistent with the standard of care

To view the UPMIFA document in its entirety, please click here.