sec.71Matters to which trustee must have regard in exercising investment power

sec.71 Matters to which trustee must have regard in exercising investment power

A trustee must, in exercising an investment power, have regard to the following matters, to the extent they are appropriate to the circumstances of the trust— the purposes of the trust and the needs and circumstances of the beneficiaries; the desirability of diversifying the trust investments; the nature of, and the risk associated with, the existing trust investments and other trust property; the need to maintain the real value of the capital or income of the trust; the risk of capital or income loss or depreciation; the potential for capital appreciation; the likely income return and the timing of income return; the length of the term of the proposed investment; the probable duration of the trust; the liquidity and marketability of the proposed investment during, and at the end of, the term of the proposed investment; the total value of the trust property; the effect of the proposed investment for the tax liability of the trust; the likelihood of inflation affecting the value of the proposed investment or other trust property; the cost (including commissions, fees, charges and duties payable) of making the proposed investment; the results of a review of the existing trust investments. Subsection (1) does not limit the matters to which a trustee may have regard in exercising an investment power. (sec.71-ssec.1) A trustee must, in exercising an investment power, have regard to the following matters, to the extent they are appropriate to the circumstances of the trust— the purposes of the trust and the needs and circumstances of the beneficiaries; the desirability of diversifying the trust investments; the nature of, and the risk associated with, the existing trust investments and other trust property; the need to maintain the real value of the capital or income of the trust; the risk of capital or income loss or depreciation; the potential for capital appreciation; the likely income return and the timing of income return; the length of the term of the proposed investment; the probable duration of the trust; the liquidity and marketability of the proposed investment during, and at the end of, the term of the proposed investment; the total value of the trust property; the effect of the proposed investment for the tax liability of the trust; the likelihood of inflation affecting the value of the proposed investment or other trust property; the cost (including commissions, fees, charges and duties payable) of making the proposed investment; the results of a review of the existing trust investments. (sec.71-ssec.2) Subsection (1) does not limit the matters to which a trustee may have regard in exercising an investment power.

• (a) the purposes of the trust and the needs and circumstances of the beneficiaries;
• (b) the desirability of diversifying the trust investments;