Impact Investing under the Uniform Prudent Investor Act

Three converging trends—including a shift from negative to positive screening—are making it easier for investors to implement impact investment programs that deliver competitive returns. For families and trust beneficiaries who are interested in impact investing, they can find that it may work in an irrevocable trust under the Uniform Prudent Investor Act (“UPIA”). However, some fiduciary concerns linger. The UPIA includes, among other things, the prudent investor rule, the duty to diversify, and the duty of loyalty.