Comparison of investment of trust or foundation assets and the risks associated

In the present economic turmoil, trustees and foundation councils have to be more mindful than ever of the manner in which they invest assets. Beneficiaries suffering investment losses might question whether their trustees did everything reasonably possible to protect the trust fund against such losses. Similarly, a foundation’s guardian may require the foundation council to account for their administration of foundation assets and any suffered losses.

Consequently, when making investments, it is essential for trustees and foundations councils to understand their investment powers, duties, and investment policy in order to manage and minimise the potential risk of liability due to investments which may under perform or cause significant losses.

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