What function does the Trust Committee serve?

The Trust Committee primarily serves the role of overseeing the fiduciary activities of the bank or trust entity. This oversight is critical as it ensures that the trust operates in accordance with applicable laws, regulations, and ethical standards. The committee is responsible for making decisions that align with the best interests of the investors and beneficiaries of the trust. This includes monitoring compliance with investment policies, managing conflicts of interest, and ensuring that the trust is being administered properly and in the best interests of the unit holders.

The Trust Committee’s oversight functions also involve evaluating the performance of the trust and making recommendations for any necessary changes in management or investment strategies. This level of oversight helps maintain the integrity and accountability of the investment trust, providing assurance to investors that their contributions are being handled responsibly and effectively.

In contrast, managing day-to-day transactions is typically handled by operational staff rather than the Trust Committee itself. Custody of physical assets is usually the responsibility of a custodian bank or other external parties specializing in safeguarding assets, and accounting for contributions is generally conducted by the accounting department or financial officers tasked with handling the fund's financial reporting and record-keeping.