20Investment by trustee, matters to be considered

##### 20. Investment by trustee, matters to be considered (1) Without limiting the matters that a trustee may take into account when exercising a power of investment, a trustee shall, so far as they are appropriate to the circumstances of the trust, have regard to — (a) the purposes of the trust and the needs and circumstances of the beneficiaries; and (b) the desirability of diversifying trust investments; and (c) the nature of and risk associated with existing trust investments and other trust property; and (d) the need to maintain the real value of the capital or income of the trust; and (e) the risk of capital or income loss or depreciation; and (f) the potential for capital appreciation; and (g) the likely income return and the timing of income return; and (h) the length of the term of the proposed investment; and (i) the probable duration of the trust; and (j) the liquidity and marketability of the proposed investment during, and on the determination of, the term of the proposed investment; and (k) the aggregate value of the trust estate; and (l) the effect of the proposed investment in relation to the tax liability of the trust; and (m) the likelihood of inflation affecting the value of the proposed investment or other trust property; and (n) the costs (including commissions, fees, charges and duties payable) of making the proposed investment; and (o) the results of a review of existing trust investments. (2) A trustee may — (a) obtain and consider independent and impartial advice reasonably required for the investment of trust funds or the management of the investment from a person whom the trustee reasonably believes to be competent to give the advice; and (b) pay out of trust funds the reasonable costs of obtaining the advice. [Section 20 inserted: No. 1 of 1997 s. 6.]