Nondiscretionary Trust (Noun)
Meaning
An investment trust that can buy only those securities listed when the trust was organized.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The investment firm established a nondiscretionary trust to manage the client's portfolio according to specific requirements.
- By creating a nondiscretionary trust, the company ensured that only the approved securities were included in the investment portfolio.
- The nondiscretionary trust limited the trustee's options to purchasing only those stocks listed in the initial trust agreement.
- When setting up the investment plan, the financial advisor suggested using a nondiscretionary trust to maintain specific investment goals.
- Investors often opt for a nondiscretionary trust as it guarantees adherence to the predetermined investment strategy and security choices.