Investment Advice for Trustees
Since the introduction of The trustee Act 2000, trustees now have special responsibilities concerning the services and admin of trust funds. The duty of care applies to lay and professional trustees. Still higher standards are expected from professional trustees.
A statutory duty of care is applicable to the trustee investments that are contained within the trust. For new or existing trusts, the trustees must take into account the trusts aims and the suitableness of the investments to be held.
Trustees have a duty to protect the asset value of the trust fund, whilst providing income for the beneficiaries. It is important for trustees to consider the suitability of the investments in the trust, funding, the type of trust in place and the requirements of the beneficiaries.
A diversified portfolio of assets should be used to meet the trusts particular targets.
This type of approach can help to limit the risks within the trust investment by vesting across various asset classes. It is critical to take into account risk any particular prerequisites of the trustees. This could also include investing in an ethical or sociably responsible style.
Trustees have an administrative responsibility to re-examine the assets contained within the trust on a regular basis. This can be a prolonged and protracted process, particularly if the trust decision makers are not veteran investors.
Trusts and Financial Advice
It is fundamental to seek unbiased and unprejudiced advice on the assets held inside any form of trust arrangement. We continually advise existing and new trustees on suitable asset allocation investment strategies.
Trustees often engage the investor services of a bank or stock-broker. Occasionally the service is not specific to the needs of the individual trust. A 1 size fits all philosophy may not take into consideration the individual needs of the trust. For Instance, the requirements of a large educational trust would be different to a small family trust.
The costs to administrate the investment funds are an all-important element. The admin fees charged by banks and stockbrokers for trust investment funds management can be expensive. This might impact on the returns the trust can accomplish.
Our investing process takes into account the fee, as this is a recognized component when we recommend unique investment funds.
If as trustees you are deliberating about investing it is critical to remember that the value of the trust investment and the income generated could rise as well as fall. There is no guarantee you will get back more than you vested.
Consilium Asset Management are based in Chipping Sodburychipping Sodbury and offer a unique Trustee investment management service for individual and corporate trusts.

