Prior to pension phase, does the deed allow for separation of assets between members, and, if so what is the mechanism for this and how should it be documented to comply with the deed?

Our trust deed does allow for the separation of assets between members. Clause 11 sets out the trustee's investment powers with clause 11.2 outlining the numerous investment choices that can be made by the trustee and clause 11.5 specifically contemplating the trustee making separate investments for certain beneficiaries or members. The trustee is able to implement any number of investment strategies. One member can choose to have his/her account invested in accordance with a particular investment strategy that may for example, invest in a certain type of asset. Other members can choose to go with another investment strategy that may invest in quite different assets.

To go about separating assets the Trustee needs to prepare the appropriate investment strategies and provide members with information about the respective strategies. Where the Trustee establishes more than one investment strategy for certain members of beneficiaries, clause 20 requires the trustee to:

• record on whose benefit the specific investments are made for the purposes of determining allocations to the member’s account; and
• properly allocate to the applicable account credits and debits in proportion to the specific investment.