The prudent investor rule and trust asset allocation
Subtitle: an empirical analysis
By: Max M. Schanzenbach and Robert H. Sitkoff
Contributors: John M. Olin Center for Law, Economics, and Business
Series: Discussion paper -- no. 668; Discussion paper (John M. Olin Center for Law, Economics, and Business : Online) -- no. 668.
Publisher: Harvard Law School
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Abstract: This article reports the results of an empirical study of the effect of the new prudent investor rule on asset allocation by institutional trustees.  Using federal banking data spanning 1986 through 1997, the authors find that, after adoption of the new prudent investor rule, institutional trustees held about 1.5 to 4.5 percentage points more stock at the expense of "safe"; investments.  This shift to stock amounts to a 3 to 10 percent increase in stock holdings and accounts for roughly 10 to 30 percent of the over-all increase in stock holdings in the period under study.  The authors conclude that the adoption of the new prudent investor rule had a significant effect on trust asset allocation"--John M. Olin Center for Law, Economics, and Business web site.
Notes: Title from PDF file as viewed on 6/24/2010.

Includes bibliographical references.

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