What is the role of the Trustee in a UITF?

The role of the Trustee in a Unit Investment Trust Fund (UITF) is fundamentally about overseeing and ensuring the proper management of the fund. This includes safeguarding the interests of the investors and ensuring that the fund operates in accordance with the established guidelines and applicable regulations.

The Trustee does not directly manage the individual portfolio investments, which is typically handled by a fund manager. Instead, the Trustee ensures that the fund manager is effectively executing the investment strategy and adhering to the parameters set forth in the UITF's trust deed. Additionally, the Trustee's responsibilities encompass a range of compliance and oversight duties, ensuring that the fund operates within the legal framework provided by regulatory authorities.

While the Trustee plays a crucial role in compliance, the essence of their responsibilities revolves around fund management oversight rather than conducting the day-to-day management or selling units. Thus, the statement that the Trustee is responsible for fund management accurately reflects the fiduciary and supervisory nature of their role within a UITF.