Conn. Gen. Stat. § 3-22i: Investment of funds in the trust.

(a) Notwithstanding sections 3-13 to 3-13h, inclusive, the Treasurer shall invest the amounts on deposit in the trust in a manner reasonable and appropriate to achieve the objectives of the trust, exercising the discretion and care of a prudent person in similar circumstances with similar objectives. The Treasurer shall give due consideration to rate of return, risk, term or maturity, diversification of the total portfolio within the trust, liquidity, the projected disbursements and expenditures, and the expected payments, deposits, contributions and gifts to be received. The Treasurer shall not require the trust to invest directly in obligations of the state or any political subdivision of the state or in any investment or other fund administered by the Treasurer.

(b) (1) The Treasurer may retain investment advisors to make such investments on behalf of the Treasurer and may delegate to such advisors the authority to act in place of the Treasurer in (A) the investment or reinvestment of all or parts of the amounts on deposit in the trust, and (B) the holding, purchasing, selling, assigning, transferring or disposing of any or all of the securities and investments in which such amounts have been invested and the proceeds of such securities and investments. Any such investment advisor shall be registered with the Securities and Exchange Commission unless such advisor is exempt from registration pursuant to federal law.

(2) Any investments made by an investment advisor pursuant to this subsection shall be made solely in the interest of account owners and designated beneficiaries and for the exclusive purposes of providing benefits to designated beneficiaries for qualified higher education expenses and for defraying reasonable expenses of administering the trust and CHET accounts. The assets of the trust shall be continuously invested and reinvested in a manner consistent with the objectives of the trust until disbursed, expended on expenses incurred by the operations of the trust or refunded to the account owner or designated beneficiary in accordance with the conditions provided in the participation agreement.