What is a primary function of a trustee in a unit trust?

A primary function of a trustee in a unit trust is to hold and manage pooled assets on behalf of investors. The trustee acts as a fiduciary, which means they have a legal obligation to act in the best interests of the unit holders. This role involves overseeing the investments made within the unit trust and ensuring that they align with the trust's investment objectives and guidelines.

The trustee is responsible for maintaining the integrity of the trust by managing its assets efficiently, ensuring compliance with relevant regulations, and providing transparency to investors regarding the performance of the trust. They also handle administrative tasks, such as collecting income and distributions and ensuring that these are appropriately allocated among the investors.

By focusing on the management of pooled assets, the trustee helps facilitate investor participation in a diversified portfolio, providing benefits that individual investors might not easily achieve on their own.