Trustees' Duties

Question 1

Can trustees select/ reject investments for moral reasons?

Answer 1

Non-charitable trusts: no, they must invest based on what provides the best financial return

Charitable trust: somewhat yes, they can invest having regard to the charitable purposes of the trust

Question 2

Do trustees have a duty to make diverse investments?

Answer 2

Yes there must be a diversification of investments.
For small trust non-diverse investments may be okay if there is not much capital to invest