Watchdog Wealth will answer for you:

Contractual fund, also known as unit trust fund, refers to a fund established by issuing beneficiary certificates in the form of signing fund contracts with investors, managers and custodians as parties.

1) The unit trust is a manager company established by a document named trust deed. In organizational structure, it does not have a board of directors. The fund manager company sets up the fund as the entrusting company, and invites the manager to manage the operation and operation of the fund on its own or re-employed. Usually, a securities company or an underwriting company is appointed to handle the issuance, trading, transfer, transaction, profit distribution and income of the beneficiary certificate.

2) The trustee accepts the entrustment of the fund manager company and registers and opens an account for the fund in the name of the trustee or trust company. The fund account is completely independent of the account of the fund custodian company. Even if the fund custodian company < P > goes bankrupt due to poor management, its creditors cannot use the assets of the fund. Its duties are to manage, keep and dispose of trust property, supervise the investment work of fund managers, ensure that fund managers comply with the investment regulations listed in the prospectus, and make their investment portfolio meet the requirements of trust deed. When there is a problem with the unit trust fund, the trustee is responsible for claiming compensation from the investors.