According to the provisions of the trust law, trust companies need to manage their trust property and inherent property separately and keep accounts separately. Trust property does not belong to the trust company's own assets and does not participate in liquidation. Trust property will not be affected by poor management, bankruptcy or bankruptcy of the trust company. Trust property should be handed over to other trust companies, so that the management of trust property is continuous and effective.

Fund trust, also known as money trust, refers to the behavior that the trustor entrusts the legally owned funds to the trustee based on his trust in the trustee (trust institution), and the trustee manages, uses and disposes in his own name for the benefit or specific purpose of the beneficiary according to the wishes of the trustor.

Fund trust business is an important trust business of trust institutions, and it is also the main way of financial management business of trust institutions.

base type

When handling the fund trust business, a trust institution can manage the trust funds separately for its clients according to their requirements, which is called managing the fund trust separately;

In order to make the entrusted funds reach a certain amount, the funds of different customers can also be managed together, which is usually called collective fund trust.

1. Separate management of fund trust

It can also be divided into specific separately managed fund trusts and designated separately managed fund trusts. Among them, the specific separately managed fund trust refers to the way and target of the funds designated by the client, including the category, name, quantity, term and transaction price of the investment target, and the trust institution has no discretion.

The use of funds includes:

Deposits or trust funds deposited in financial institutions; Investing in government bonds or corporate bonds; Investing in short-term bills; Domestic listed stocks; Domestic securities investment trust fund; Other businesses approved by the competent authority.

Designated independent management and use of funds trust business refers to the combination of trust institutions' own trust investment and land development business expertise to guide trust funds to invest in government budgets and implementation of development projects.

2. Collective fund trust

According to the way of accepting entrustment, the collective fund trust business can be divided into two types:

The first is the business of collectively managing trust funds with the public or unspecified people as the principal and the purchase of standard, negotiable and securitized contracts as the entrustment method;

Second, a specific group of people or institutions with risk identification ability, self-protection ability and certain risk tolerance ability are taken as clients, and trust contracts are signed as entrustment methods, and the trustees collectively manage the trust fund business.