Since the introduction of The trustee Act 2000, trustees now have particular obligations concerning the servicing and admin of trust funds. The responsibility applies to professional and lay trustees. However higher standards are expected from professional trustees.
A legal duty of care is applicable to the trustee investments that are contained within the trust. For existing and new trusts, the trustees must take into account the trusts aims and the suitability of the investments to be held.
Trustees have a duty to protect the value of the trust fund, whilst providing income for the beneficiaries. It is essential for trustees to think about the suitability of the investments held, funding, the type of trust in place and the requirements of the beneficiaries.
A varied portfolio of assets should be used to meet the trusts special targets.
This approach can help to reduce the risks within the trust investment by vesting across various asset categories. It is important to take into account risk any specific prerequisites of the trustees. This could also include consider investing in an ethical or sociably responsible way.
Trustees have an administrative duty to re-examine the assets contained within the trust on a regular basis. This can be a time-consuming and lengthy process, especially if the trust administrators are not knowledgeable investors.
Trusts and Independent Financial Advice.
It is essential to seek unbiased and unprejudiced advice on the assets held within any form of trust agreement. We regularly advise new and existing trustees on acceptable asset allocation investment strategies.
Trustees frequently engage the investor functions of a bank or stockbroker. Sometimes the service is not unique to the demands of the individual trust. A 1 size fits all philosophy may not take into account the personal needs of the trust. For example, the demands of a large educational trust would be different to a small family trust.
The costs to administrate the investment funds are an important element. The admin costs charged by banks and stockbrokers for trust investment management can be expensive. This might impact on the investment returns the trust can achieve.
Our investing process takes into account the costs, as this is a known component when we advocate specific investment funds.
If as trustees you are considering investing it is critical to remember that the value of the trust investment funds and the income given could fall as well as rise. 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.

