What is NOT a duty of the trustees of a unit trust?

What is NOT a duty of the trustees of a unit trust?

• A. Managing the portfolio of investments effectively.
• B. Ensuring adherence to trust deed provisions.
• C. Actively participating in unit-holder decisions.
• D. Protecting the interests of unit-holders.

Answer: (C)

The duties of trustees in a unit trust include managing the portfolio of investments effectively, ensuring adherence to trust deed provisions, and protecting the interests of unit-holders. However, actively participating in unit-holder decisions is not a primary duty of the trustees. Trustees are responsible for overseeing the trust and ensuring that the investment strategy aligns with the trust's objectives and benefits the unit-holders. They manage the assets and make investment decisions based on the terms set forth in the trust deed. While they may communicate with unit-holders and inform them about developments and performance, the actual decision-making regarding unit-holder votes or individual actions typically remains with the unit-holders themselves. This means trustees must fulfill their fiduciary responsibilities and act in the best interests of unit-holders, but they do not directly engage in unit-holder decisions, which protects them from potential conflicts and ensures that the trust operates according to its established guidelines.

The duties of trustees in a unit trust include managing the portfolio of investments effectively, ensuring adherence to trust deed provisions, and protecting the interests of unit-holders. However, actively participating in unit-holder decisions is not a primary duty of the trustees.

Trustees are responsible for overseeing the trust and ensuring that the investment strategy aligns with the trust's objectives and benefits the unit-holders. They manage the assets and make investment decisions based on the terms set forth in the trust deed. While they may communicate with unit-holders and inform them about developments and performance, the actual decision-making regarding unit-holder votes or individual actions typically remains with the unit-holders themselves.

This means trustees must fulfill their fiduciary responsibilities and act in the best interests of unit-holders, but they do not directly engage in unit-holder decisions, which protects them from potential conflicts and ensures that the trust operates according to its established guidelines.