A Trustee's Duties In Volatile Markets

Introduction

Market volatility arising from the COVID-19 pandemic is unlike anything experienced in recent history. Two of the largest single day drops in the history of the Dow Jones Industrial Average occurred in March 2020. Later that same month, the S&P 500 Index experienced an 18% surge over a period of three days; and since March, stock indexes in both Canada and the U.S. have recovered significantly from the lows brought on by the pandemic. With this level of volatility in the markets, investors are forced to base their decisions on uncertain and rapidly evolving market conditions.

Trustees that have trust property invested in the markets have additional considerations that can make their roles particularly challenging in these times. In addition to following the terms of the trust deed or indenture, a trustee must continue to act in the best interests of beneficiaries and to comply with the trust legislation in their province. The purpose of this article is