You are here

Investment Rules

Document

Last amended: 27 May 2011

    

Investment strategy

The trustee must formulate and give effect to an investment strategy the dominant purpose of which is to satisfy and fulfil the primary purpose of the trust, which is to pay for the reasonable care and accommodation needs of the principal beneficiary as determined by the trustee from time to time. Subject to these needs, the investment strategy must have regard to:

  • the risk involved in making, holding and realising, and the likely return from, the trust fund's investments, having regard to its objectives and its expected cash flow requirements,
  • the composition of the trust fund's investments as a whole, including the extent to which the investments are diverse or involve the trust in being exposed to risks from inadequate diversification,
  • the effect of the proposed investment in relation to the tax liability of the trust,
  • the liquidity of the trust fund's investments having regard to its expected cash flow requirements, and
  • the ability of the trust fund to discharge its existing and prospective liabilities.

Note: As part of the trust's investment strategy, it can purchase real estate for the accommodation, or a right to accommodation, for the principal beneficiary.