statutory investment

(redirected from Statutory Investments)

Statutory investment

An investment that a trustee is authorized to make under state law.

Statutory Investment

Investments allowed for institutional investors under the legal and regulatory rules of the country in which they are made. Institutional investors, notably banks, handle funds on behalf of clients, who may or may not be interested in investing themselves. As a result, many institutional investors are restricted from making certain high-risk investments. In the case of bonds, statutory investments are called investment-grade. One may also refer to statutory investments as legal investments.

statutory investment

Mentioned in ?
References in periodicals archive ?
Policy rate hikes induce rate rise in money markets, including in government securities, resulting in lower asset values for banks' statutory investments, leading to lower profitability.
Consolidated statutory investments of the group's title insurance underwriters at yearend 1995 totaled $404 million and were concentrated as follows: 40 percent affiliated equity investments, 23 percent cash and short-term investments, 18 percent bonds, 10 percent unaffiliated equities, 5 percent mortgages and real estate and 4 percent other assets.

Full browser ?