Why have some trust funds lost substantial amounts of money during the recent economic downturn

Nearly all trusts are invested in the stock market, and suffered some losses in that sector.  However, the degree to which trusts are invested in stocks varies widely, from 15 to 94 percent of total holdings, with an average of about 49 percent.  Trusts that had significant revenue sources outside of stock investments, like profits from loans made using their own capital, were able to remain profitable during the downturn. 

Back