nondiscretionary trust
- noun
- /ˌnɒndɪˈskrɛʃənəri trʌst/
- Formal
:
fideicomiso no discrecional
- A nondiscretionary trust cannot change its investments once established.
Examples
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The nondiscretionary trust could not change its portfolio even as market conditions shifted.
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Many conservative investors prefer a nondiscretionary trust for its clear, set investment policy.
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Because it was a nondiscretionary trust, the manager was unable to react to new investment opportunities.
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The nondiscretionary trusts are often preferred for their stability.
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Many conservative investors prefer a nondiscretionary trust for its clear, set investment policy.
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Because it was a nondiscretionary trust, the manager was unable to react to new investment opportunities.
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The nondiscretionary trust could not change its portfolio even as market conditions shifted.
Synonyms
A fund that keeps the same stocks or bonds selected at the start
A company that pools money to buy a set of stocks and bonds, with shares investors can sell back
Antonyms
- Specialized
A legal plan where a person in charge decides how much money each named person receives
How Flexible
- Specialized
- Specialized
82
3.5
- Specialized
7
4.8
- Formal
Surface Forms
Morphology
The compound meaning is directly built from 'nondiscretionary' (lacking personal judgment or choice) + 'trust' (a legal arrangement holding assets), so a learner who knows both words can infer that this is a trust where the trustee has no discretion over investments. The core idea is compositional and follows a transparent negation+noun pattern, though specific legal details about how holdings are specified are specialized.
Etymology
The term nondiscretionary trust comes from the idea of discretionary meaning 'choice'. A nondiscretionary trust is like a locked shopping list the manager must follow and cannot change, so it means a trust that must keep only the investments set at the start.