(c) In managing and investing an institutional fund, an institution:

1. (1) may incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the institution, and the skills available to the institution; and
2. (2) shall make a reasonable effort to verify facts relevant to the management and investment of the fund.

(e) Except as otherwise provided by a gift instrument, the following rules apply:

1. (1) In managing and investing an institutional fund, the following factors, if relevant, must be considered:

   (A) general economic conditions;

   (B) the possible effect of inflation or deflation;

   (C) the expected tax consequences, if any, of investment decisions or strategies;

   (D) the role that each investment or course of action plays within the overall investment portfolio of the fund;

   (E) the expected total return from income and the appreciation of investments;

   (F) other resources of the institution;

   (G) the needs of the institution and the fund to make distributions and to preserve capital; and

   (H) the asset's special relationship or special value, if any, to the charitable purposes of the institution.

2. (2) Management and investment decisions about an individual asset must be made not in isolation but rather in the context of the institutional fund's portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund and to the institution.
3. (3) Except as otherwise provided by law other than sections 309.73 to 309.77, an institution may invest in any kind of property or type of investment consistent with this section.
4. (4) An institution shall diversify the investments of an institutional fund unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification.
5. (5) Within a reasonable time after receiving property, an institution shall make and carry out decisions concerning the retention or disposition of the property or to rebalance a portfolio, in order to bring the institutional fund into compliance with the purposes, terms, and distribution requirements of the institution as necessary to meet other circumstances of the institution and the requirements of sections 309.73 to 309.77.
6. (6) A person that has special skills or expertise, or is selected in reliance upon the person's representation that the person has special skills or expertise, has a duty to use those skills or that expertise in managing and investing institutional funds.