MASTER TRUST Meaning and
Definition
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Master Trust is a financial term that refers to a legally-structured arrangement in which a trustee holds and administers assets on behalf of multiple beneficiaries. It is typically utilized by pension funds, corporations, or institutional investors to manage collective investment schemes such as retirement or employee benefit plans.
In a Master Trust, the trustee takes control of the assets contributed by various participating employers or individuals and manages them as a single pool. This allows for more efficient and cost-effective investment management, as the assets are combined and invested collectively. The trustee holds legal ownership of the assets and is responsible for their safekeeping, proper management, and distribution according to the terms of the trust deed.
The Master Trust structure offers several benefits, including diversification of investment risks, economies of scale in terms of administrative costs, and professional management expertise. It also provides flexibility for employers or individuals to customize their investment options according to their specific needs and risk tolerance.
Moreover, a Master Trust typically operates under a trust agreement or deed, which outlines the rights and responsibilities of the trustee, beneficiaries, and participating employers or individuals. It ensures transparency, accountability, and legal protection for all parties involved.
In summary, a Master Trust is a legal arrangement whereby a trustee manages a pool of assets contributed by multiple beneficiaries or participating employers. It offers benefits such as cost-efficiency, risk diversification, and professional investment management.
Common Misspellings for MASTER TRUST
- naster trust
- kaster trust
- jaster trust
- mzster trust
- msster trust
- mwster trust
- mqster trust
- maater trust
- mazter trust
- maxter trust
- madter trust
- maeter trust
- mawter trust
- masrer trust
- masfer trust
- masger trust
- masyer trust
- mas6er trust
- mas5er trust
- mastwr trust
Etymology of MASTER TRUST
The word "master" has its origins in the Old English word "mægester" which means "chief, head, leader, or teacher". It is derived from the Latin word "magister" which has a similar meaning. Over time, "master" has come to refer to someone who is in a position of authority, expertise, or control.
The word "trust" originated from the Old Norse word "traust" which means "confidence or reliance". It has connections to the Old English word "trēowe" meaning "faithful or strong", and the German word "Trauung" which means "faith or trust".
When the words "master" and "trust" are combined to form the term "master trust", it refers to a type of trust that is established and managed by a designated entity or institution on behalf of multiple individuals or organizations.
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