What is the primary responsibility of the Trustee in a UITF?

The primary responsibility of the Trustee in a Unit Investment Trust Fund (UITF) is to have exclusive control over the UITF's assets. This role involves overseeing the management of the fund, ensuring that it operates in accordance with the established regulations, investment objectives, and best practices. The Trustee has fiduciary duties, meaning they are obligated to act in the best interests of the unit holders and ensure that their rights are protected.

In this position, the Trustee also has the authority to appoint a fund manager to handle the day-to-day investment activities. However, the ultimate responsibility for the control and oversight of the UITF and its compliance with regulatory requirements remains with the Trustee. This includes safeguarding the assets, managing distribution to investors, and ensuring transparency and accountability within the fund's operations.

Other responsibilities such as managing the investment strategy, providing marketing support, or acquiring new investors typically fall under the purview of the fund manager and marketing teams rather than the Trustee. The Trustee ensures that the investment decisions and business practices align with the fund's goals and legal standards, but it is not their role to actively engage in marketing or investor acquisition.