Duty to Invest – Part of Fiduciary Duty
ˇPrudent Investor Standard
ˇS. 27(1) In investing trust property, a trustee must exercise the care, skill, diligence and judgment that a prudent investor would exercise in making investments. 1998, c. 18, Sched. B, s. 16 (1).
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ˇAuthorized investments
ˇS. 27 (2)  A trustee may invest trust property in any form of property in which a prudent investor might invest
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ˇDiversification
ˇS. 27 (6)  A trustee must diversify the investment of trust property to an extent that is appropriate to,
ˇ(a) the requirements of the trust; and
ˇ(b) general economic and investment market conditions
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ˇTerms of trust
ˇS. 27 (9)  This section and section 27.1 do not authorize or require a trustee to act in a manner that is inconsistent with the terms of the trust
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ˇTrustee’s duty if delegating functions to an agent
ˇS. 27.1 (4)  A trustee is required to exercise prudence in selecting an agent, in establishing the terms of the agent’s authority and in monitoring the agent’s performance to ensure compliance with those terms.
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ˇInvestment Plan or Strategy Recommended
ˇ28.  A trustee is not liable for a loss to the trust arising from the investment of trust property if the conduct of the trustee that led to the loss conformed to a plan or strategy for the investment of the trust property, comprising reasonable assessments of risk and return, that a prudent investor could adopt under comparable circumstances.
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MC900287031[1]
Duties and Powers to invest under sections 26-31 of the Trustee Act:
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