What does the trust committee consider when excluding an issuer from investment?

In considering the exclusion of an issuer from investment, the trust committee evaluates the issuer's bad reputation with the trust entity owners as a significant factor. The issuer's reputation can significantly affect investor confidence and trust, which are critical in the realm of investment management. If the issuer is perceived negatively, possibly due to past ethical issues, regulatory violations, or other reputational scandals, the trust committee may determine that such an issuer poses a risk that is not aligned with the trust's standards or the interests of the unit holders. Protecting the trust’s integrity and the stakeholders' interests is paramount, and a poor reputation can compromise both, warranting exclusion from the investment portfolio.

Other factors like an issuer's financial performance, market trends, or their past securities offerings could be relevant to investment decisions, but the emphasis in this context on reputation reflects a critical component of trust and confidence that underpins investment decisions.