Invest­ments shall be made with judg­ment and care, under cir­cum­stances then pre­vail­ing, which per­sons of pru­dence, dis­cre­tion and intel­li­gence exer­cise in the man­age­ment of their own affairs, not for spec­u­la­tion, but for invest­ment, con­sid­er­ing the prob­a­ble safe­ty of their cap­i­tal, as well as the prob­a­ble income to be derived.

The stan­dard of pru­dence to be used by invest­ment offi­cials shall be the “pru­dent per­son” stan­dard and shall be applied in the con­text of man­ag­ing an over­all portfolio.