A. The standard of prudence to be applied by the Board of Trustees in the investment of the aggregated pension funds shall be the "prudent investor rule," which states, "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 prudent investor rule shall be applied in the context of managing the overall portfolio. The Board acting in accordance with written procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviation from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.
B. The assets of the Aggregated Pension Trust Fund shall be invested in investment securities and/or other instruments which are authorized investments pursuant to any applicable law for any of the associated pension plans.
C. The Board shall routinely monitor the contents of the portfolio, the available markets and the relative values of competing instruments, and shall adjust the portfolio accordingly.
D. Investments shall be diversified to preclude large losses from a single position.
E. The Board may employ a professional money manager or portfolio manager or other consultants or professionals as deemed necessary to aid in the investment and/or administration of pension fund assets. Any procurement of professional services shall be as required by Act 44.
F. Investment earnings shall be allocated to each associated pension plan in proportion to the most recently determined participation value.