Investing for Trusts
Meeting your obligations as a trustee
As a trustee you have a fiduciary responsibility when investing a trust’s assets. Trustees are required to invest according to the Trust Deed and any statute or common laws that may be in place governing the investment actions of the trust.
Trustees managing the investment affairs of a trust have to act:
- In the best interest of both present and future beneficiaries
- Impartially and fairly
- With the care, diligence and skill that a prudent person or business would exercise in managing the affairs of others
Trustees are not required to avoid risk when investing, but must seek to achieve the best return for all beneficiaries according to the agreed risk profile of the trust. In the case of a negligence accusation against a trustee, a court may take into account the investment strategy of a trust when determining the liability of a trustee. Therefore it is prudent for trustees to establish a qualified and strict investment process when investing on behalf of a trust. This investment process should include:
- Determining the investment objectives of the trust
- The establishment of a clear Investment Policy Statement (IPS) that outlines the rules around how and where the trust invests
- Ongoing investment portfolio management, administration and review
To further help identify and understand the obligations of trustees when investing for a trust we have created a Trustees Guide which outlines in 7 simply explained points what every trustee should know about investing. To receive this free brochure, email us your interest by clicking here.
For more information on Invest Policy Statements, view Cam Watson’s article - The value of having an IPS
How Craigs Investment Partners can help
At Craigs Investment Partners we work closely with our clients to understand their specific objectives so that we can tailor our investment advice accordingly. Additionally, we understand the specific needs of trusts and the obligations that trustees have under the Trustee Act 1956 and in particular the changes brought about by the Trustee Amendment Act 1988.
Craigs Investment Partners has a history of helping trustees successfully manage the investment needs of their trusts. Our Investment Advisors actively manage the investments of major charitable organisations such as Plunket, NZ Red Cross, Salvation Army and The Acorn Foundation as well as thousands of other Trusts.
View a case Study – Helping the SPCA invest for the future
Our investment portfolio services will help ensure continued compliance with the obligations of trustees, and in particular:
Portfolio Reporting
Our investment portfolio services include detailed reporting on the performance and specific investments of the Trust. This can help maintain transparency and regular review of the trusts investments to ensure accordance with the Trust Deed.
Comprehensive tax reporting
Our investment portfolio services include comprehensive tax reporting to assist in the preparation of end of year tax returns to manage tax obligations simply and cost-effectively.
To arrange a consultation with one of our Investment Advisors to discuss the investment needs for your trust, contact a Craigs Investment Partners branch.