Trustees exercising their powers of investment are subject to the common law duty of care, which requires them to use the same diligence as people of ordinary prudence would use in relation to their own affairs. Trustees are also required to consider the interests of all beneficiaries, in particular to balance the interests of a beneficiary entitled to income or capital. They must also keep the trust investments under review.
Suitability of investments relates both to the kind of investment proposed and to the particular investment. It will include considerations as to the size and risk of the investment and the need to produce an appropriate balance between income and capital growth for the trust.
The Trustee Act 2000 introduced a statutory duty to obtain and consider advice.
The Trustee Act allows a trustee to delegate powers of investment and management of funds where a trust deed is silent. Trustees are not bound to perform the whole duties of the trust personally. Delegation if properly carried out, is not a breach of trust.
Given the diverse, and often confusing range of investment choices available to trustees, St. James’s Place has developed a number of growth and income portfolios, each with a clear investment objective and risk profile.
In addition to our core range of investment solutions, we also provide discretionary portfolio management, via Rowan Dartington, who specialise in the construction of bespoke investment portfolios. Rowan Dartington is part of the St. James’s Place Wealth Management group.