What is the frequency for performing Investment reviews on trust accounts?

Performing investment reviews on trust accounts annually is considered best practice for several reasons. First, an annual review aligns with typical investment cycles, allowing fiduciaries to assess the performance of investments in relation to market conditions and the trust's objectives over a meaningful time horizon. This frequency strikes a balance between too frequent adjustments, which could lead to unnecessary trading costs and disruptions, and too infrequent reviews, which might miss changes in the financial landscape or beneficiaries' needs.

In addition, an annual review provides ample opportunity to evaluate the trust's overall strategy, asset allocation, and adherence to the trust document’s guidelines. It helps ensure that the investments remain aligned with both the trust's investment policy and the beneficiaries' best interests. By conducting these reviews annually, trustees can make informed decisions about any necessary adjustments to the portfolio, thereby enhancing the trust's potential to achieve its long-term goals.