Investment Trust Agreement Template for South Africa

The Investment Trust Agreement is a crucial legal instrument used in South Africa when establishing a trust structure specifically designed for investment purposes. This document is essential when parties wish to create a regulated vehicle for managing investment assets for the benefit of specified beneficiaries, while ensuring compliance with South African trust and financial services laws. The agreement comprehensively addresses trust formation, governance structures, investment powers, distribution rules, and administrative procedures. It incorporates requirements from the Trust Property Control Act, Financial Advisory and Intermediary Services Act, and other relevant South African legislation. The document is particularly valuable for high-net-worth individuals, family offices, and institutional investors seeking to establish a robust, regulated investment structure with professional management and clear governance guidelines.

1. Parties: Identifies and defines all parties to the agreement including the Founder/Settlor, Trustees, and Principal Beneficiaries

2. Background: Sets out the context and purpose of establishing the investment trust

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Formation of Trust: Establishes the trust, states its name and confirms the initial trust capital

5. Trust Objects and Purpose: Defines the primary objectives and purpose of the trust and intended beneficiaries

6. Powers and Duties of Trustees: Comprehensive outline of trustees' powers, responsibilities, and limitations

7. Investment Powers and Guidelines: Specifies permitted investments, investment strategy, and risk management requirements

8. Administration of Trust: Details day-to-day management procedures, meeting requirements, and decision-making processes

9. Distribution Rules: Specifies rules and procedures for distributing income and capital to beneficiaries

10. Appointment and Removal of Trustees: Procedures for appointing new trustees and circumstances for removal

11. Trustee Remuneration: Details of trustee compensation and reimbursement of expenses

12. Amendment and Variation: Procedures for amending the trust deed and circumstances allowing variations

13. Financial Reporting: Requirements for financial statements, auditing, and reporting to beneficiaries

14. Termination: Circumstances and procedures for trust termination and asset distribution