BUSINESS

TRUST
GROUP 7 – Antiporda, Antonio, Cristobal,
Cruz, Miguel, Natanauan, and Velardo
 1 3 5
Organization Decision Business
and its types Making Expansions
CONTENT

Dissolution Payment of Concrete

Process Taxes Examples

2 4 6
I. ORGANIZATION
Types and Process of
Organization
 A business trust, also known as a
Massachusetts business trust, is an
unincorporated organization that forms a
company or association with its business
activities to stand as a proxy.
BUSINESS

These structures support their parent

organizations by providing an additional
degree of liability insurance and by
TRUST

grouping business activities into

sectors that are easily recognizable.
 BARE TRUST CHARITABLE
TRUST
There is no more than one
trustee and one legally It provides the vehicle
competent beneficiary for philanthropic trusts.
that have complete control
of the trustee/nominee,
BUSINESS TRUST

and there are no specified

obligations.

FIXED TRUST DISCRETIONARY

TRUST
TYPES OF

It involve trustees holding Also known and often

the assets for the benefit of called family trusts,
beneficiaries’ in a discretionary trusts are
determined and fixed associated with asset
proportion protection and tax
planning for family
members.
 BUSINESS TRUST
TYPES OF
TESTAMENTARY HYBRID TRUST
TRUST It has both fixed and
It only takes effect upon discretionary
the testator’s death. characteristics involving
special units for the fixed
entitlements to income or
capital over which the
trustee is given the right to
issue.

SUPERANNUATION UNIT TRUST

TRUST
It is a fixed trusts where
It is when the deed the beneficiaries and each
mandates and establishes of their interests are
the calculation bases for determined and identified
each member’s by holding units, similar to
entitlement. companies that issue
shares to shareholders.
STEPS ON HOW
TO ORGANIZE A
BUSINESS TRUST

THIRD
The third party has a
SECOND derivative right
through the trustee
FIRST The trustee has a right of
against a trust estate
reimbursement out of
The third party has a and against the
the trust estate, and if
direct right against the beneficiary.
that is insufficient,
trustee, but no direct 25%
against the beneficiary.
right against the
beneficiary.
II. DISSOLUTION
Dissolution Processes
DISSOLUTION

1 VESTING 2 TRUST IS ENTIRELY DISTRIBUTED

o It is the easiest way to dissolve a
trust, since there is a vesting date.
o A vesting date is a trust’s official
end date. It states the details of
the termination of the deed. This
would involve the trustee
distributing the assets to the
beneficiaries.
o Can dissolve the trust earlier than the vesting date.
o A trust deed will set out the process to dissolve a
trust in this manner, this will also indicate how the
assets should be distributed among the
beneficiaries.
o Requires paper works such as:
 Determination of all the assets of the trust
 Determination of how should the assets
be distributed/handled
 Discharge of all liabilities of the trust
 Preparation of trust accounts
 Ensure the accounts are independently
verified
DISSOLUTION

3 THE TRUSTEE
REVOKES THE TRUST
4 WITH CONSENT OF THE BENEFICIARIES

o It can only be done if the trust
deed gave the trustee and settlor
the power to do so.
o This also requires paper works
o Revocation of the trust should be
formally recorded and should be
made available to the
beneficiaries.
o The trust can be dissolved through the agreement
of all beneficiaries to dissolve the trust.
o The termination of trust can only be valid if the
beneficiaries are aged 18 and above and have greed
to the termination of trust.
o The process of dissolution through the consent of
beneficiaries
 First is the agreement of all beneficiaries to
dissolve the trust
 Beneficiaries should discharge the trustee
 Trust assets is directed to the beneficiaries
 And is recorded that the trust is terminate
DISSOLUTION

5 BY COURT ORDER

o Dissolve through court order

o Rather than dissolving the trust,
the court could also require:
 The trust be varied
 The trustee must act in a
particular way
III. DECISION MAKING
Decision making processes
in all aspects of the business
process.
DECISION
MAKING
The Trustee is the one who manages and the one in charge with making decisions with
regards to the affairs of the trust. There are no specific guidelines on how should a
trustee decide on important matters concerning the trust however, he or she should
consider the following before deciding:

TRUST DEED 2 MEMORANDUM OF 3

NATURE AND
1
WISHES VALUE OF THE
TRUST ASSET AND
CIRCUMSTANCES 5 DUTIES AND INVESTMENT
4
OF THE RESPONSIBILITIES
BENEFICIARIES OF THE TRUSTEE
IV. PAYMENT OF TAXES
The rules and processes of
paying taxes
PAYMENT OF
TAXES
o Tax may be charged on the trustee, beneficiaries and the
settlor. However, tax rules may vary depending on what
type of trust does the trustee have.

o The rate of income tax varies depending on which country

or locality the trustee resides.
 In bare trust, the income tax is charged on the
beneficiary, as if the trust does not exist
 In discretionary trust, an income tax is charged to the
trustees as well.
 In mixed trust, both the trustee and the beneficiary are
charged with income tax.
o In addition,

 Interest and possession trust are charge as income

tax to trustees
 Accumulation and maintenance of trust are taxed
and be charged to the beneficiaries,
V. EXPANSION
Expansion of
Business Trust
EXPANSION
1 Expansion of the scope of asset that can be trusted
Before revisions After revisions
Money, monetary claims, land, and Asset rights [intellectual property
associated buildings. Securities, rights, copyright patents and the
personal property and surface like, and rights over collateral can
rights and loan rights over land also be entrusted]

Trust companies (local & foreign)

Custodian type trust companies
(local & foreign)
And trust within group companies
and technology transfer institutions
2 Expansion of entities managing trust business
Before revisions After revisions
Financial institutions that
Financial institutions that concurrently conduct trust
concurrently conduct trust business and trust companies
business prescribed under the Trust
Business Act

Expansion of the points of customer Establishment of the system of “Agents for Trust Agreement” and the
contacts for users of trust services system of “trust beneficial interest sellers”
VI. EXAMPLES
Concrete examples
of such business
organization
EXAMPLES
Concrete examples of such business organizations here in the Philippines:

SM PRIME SM INVESTMENT CAMELLA HOMES

1 2 3
HOLDINGS CORPORATION INCORPORATED
One of the largest integrated The leading Philippine company The largest homebuilder in
property developers in that is invested in market- the Philippines' real estate
Southeast Asia that offers leading businesses in retail, industry.
innovative and sustainable banking and property.
lifestyle cities.

FILINVEST LAND
4 PHIL AM LIFE 5
INCORPORATED
One of the leading insurance One of the oldest and largest
companies in the Philippines. residential real estate
developers in the Philippines.
TRUST
FUND
GROUP 7 – Antiporda, Antonio, Cristobal,
Cruz, Miguel, Natanauan, and Velardo
 1 3 5
Organization Decision Business
and its types Making Expansions
CONTENT

Dissolution Payment of Concrete

Process Taxes Examples

2 4 6
I. ORGANIZATION
Types and Process of
Organization
 A mutual fund is when money is
collected in a whole from various
investors. These investors invest their
money in sorts of assets such as; stocks,
bonds, and money market
instruments.
MUTUAL

These bonds are operated by

professional money managers. These
managers are the ones who are in charge
FUND

of making money for the investors. They

allocate the fund’s assets and attempt to
produce capital gains or income for the
clients.
 STOCK FUNDS
o Invest in corporate stocks
o Not all stock funds are the same
o The concentration of equity funds is
on companies that are traded
publicly on one of the stock market
exchanges.
MUTUAL FUND
ACTIVELY MANAGED VS
TYPES OF
EXCHANGED TRADED FUNDS
o Either actively-managed or exchange-
traded are all mutual funds.
o A manager who decides which
protection to buy and sell.
o They have an objective that drives the
investment option of the manager.
BOND FUNDS
o Invest in securities with a fixed
revenue return.
o As they usually seek to achieve
higher returns, they have higher
risks than money market funds.
MONEY MARKET FUNDS
o The money market is made up of
secure (risk-free), short-term debt
instruments, mainly Treasury
bills from the government. This is
a safe place where you can park
your cash.
 TARGET DATE FUNDS
o Combination of stocks , bonds, and
other assets are held. Over time, the
mixture increasingly changes
according to the fund's method. Goal
date funds are structured for people
with unique dates of retirement in
mind.
MUTUAL FUND
FIXED INCOME FUNDS
TYPES OF
o The category of fixed income is
another major party. Investments
paying a specified rate of return, such
as government bonds , corporate
bonds, or other debt instruments, are
the subject of a fixed-income mutual
fund.
EQUITY FUNDS
o Equity or equity funds are the biggest
group. This sort of fund invests mainly
in stocks, as the name suggests.
Various subcategories are under this
category. The size of the companies
they invest in: small-, mid-, or large-
cap is the name of certain equity fund.
INDEX FUNDS
o An index fund is a type of mutual
fund or exchange-traded fund
(ETF) with a portfolio designed to
match or track the components of
the index of the financial market.
 BALANCED FUNDS INCOME FUNDS
o Invest in a hybrid of asset types, be it o They are named for their purpose: on a
stocks, shares, instruments of the steady basis to provide current
money market or alternative income. In order to have interest
investments. The goal is to reduce the sources, these funds invest mainly in
risk of exposure across asset groups. government and high-quality
corporate debt, keeping these bonds
till maturity.
MUTUAL FUND

INTERNATIONL/GLOBAL SPECIALTY FUNDS

TYPES OF

FUNDS
o This mutual funds classification is
o An international fund (or a global more of an all-encompassing
fund) only invests in assets located category consisting of funds that
outside of one’s country of origin. have proven to be common but do
In the meantime, global funds can be not necessarily belong to the more
invested everywhere in the world, rigid categories that we have
even within one’s home country. defined so far
 SOCIALLY RESPONSIBLE
REGIONAL FUNDS
FUNDS
o Focusing o A.K.A. ethical funds only invest in
MUTUAL FUND

on a single geographic
region of the world makes it simpler.
A benefit of these funds is that they
make it easier to buy stock, which can
otherwise be difficult and costly, in
TYPES OF
businesses that follow the conditions
of those laws or values. Some socially
conscious funds, for example, do not
invest in "sin" sectors such as

foreign countries. cigarettes, alcoholic drinks, weapons

or nuclear power.
STEPS ON HOW
TO ORGANIZE A
MUTUAL FUND
o The organizational structure of a mutual fund traces the rights and obligations of every
one of the key parts of the reserve's operations. The funds' operation incorporate
purchasing, selling, guaranteeing and dealing with the store's advantages.
o The key segments of a common store's authoritative structure are the backers, investors,
top managerial staff, investment advisers, transfer agents, caretakers and autonomous
accountants
Contracts with a
Fund is set up as 25% custodian, a
a corporation or Fund is run by a transfer agent
trust, owned by management and an
shareholders. company underwriter.
FIRST SECOND THIRD FOURTH FIFTH
Shareholders Each individual
should elect a fund hires an
board of directors investment advisor
to oversee the
fund.
II. DISSOLUTION
Dissolution Processes
DISSOLUTION
The biggest reason why a mutual fund company will decide to close its fund's doors is that the
fund's methodology is being undermined by the reserve's size. Assets that will in general grow out
of themselves the most are little cap reserves or centered assets. At the point when a store
performs well, numerous new financial specialists are happy to put their cash into it, but since little
cap supports manage low-volume stocks and centered assets incline toward portfolios containing
just around 20 offers, a lot of benefits will obstruct the methodology of either sort of reserve.

1 First thing to know in dissolving the operation of the business is that organization
proprietors must favor the dissolution of the business. After investors or individuals have
decided in favor of the disintegration, desk work must be documented with the state in
which the business was fused.

Second, in the event that the organization qualified to execute business in different states,
2 administrative work must be documented in those states, as well.
DISSOLUTION

Third, in spite of the fact that you're finishing activities, your expense commitments don't
3 promptly stop. You should formalize the business shutting with the IRS just as your state
and nearby burdening organizations.

4 Fourth, inform the entirety of your organization's loan bosses via mail.

Fifth, lender cases can be acknowledged or dismissed by your organization. Acknowledged

5 cases must be paid or good game plans made with banks for reimbursement.

6 Sixth, in the wake of paying cases, remaining resources might be appropriated to

organization proprietors in relation to the portion of possession.
III. DECISION MAKING
Decision making processes
in all aspects of the business
process.
DECISION MAKING
PROCESS
When making investments, investors also need to analyze investment
strategies in terms of numerical values based on different parameters. This
situation can be described as a challenge with multiple decision-making
criteria (MCDM).

This method is also the fundamental assumption in the implementation of a

hierarchical structure for the assessment of investment style selection
strategies. In order to determine investment style, one uses the criterion
measurements.
DECISION
MAKING
SECOND
Using a hierarchical FOURTH
system composed of THIRD One compares the
the above common Weights with output empirical data and
factors with finds that the rate of
FIRST values are aggregated
evaluation criteria, by the synthetic utility return is forecast by
One employs factor one constructs the value corresponding the MCDM model.
analysis to derive evaluation frame and to each investment
independent then derives the
common factors
25%
style.
relative weights with
from certain respect to the criteria
parameters in order considered.
to achieve this aim.
IV. PAYMENT OF TAXES
The rules and processes of
paying taxes
PAYMENT OF
TAXES
o Steps of determining the tax charged on mutual funds

 Determine which investment transaction requires

payment of taxes ( since he or she might have a capital
gain or loss)
 Once the determination of the transaction has been
completed, he or she must pay for the tax on
dividends, interest, and capital gains that he or she
received periodically from the company that he or she
has invested in.
 However, one must understand the difference
between short-term capital gains ( investment that is
held for 12-months) and long-term capital gains (which
is held for more that 12 months).

o Short-term capital gains are tax are subject to regular

income tax
o Long-term capital gains are subject to federal tax.
IV. EXPANSION
Expanding
Business through
Mutual Funds
EXPANSION
1 Growing your profits with experts
In order to grow their profits, they should
invest their capital in Mutual funds which
are managed by professional money
managers. Many Mutual Fund companies
provide trading services, investment advice
that can help business owners make
informed decisions.
3 Study the financial markets
Understanding the nuances of mutual
fund investing can help entrepreneurs
understand the markets better and
maximize returns on investment.
2 Diversified portfolio mitigates risk
In order to rapidly expand their business,
entrepreneurs should seriously consider
aggressive equity funds which provide
higher returns on average, although at
high risk.
4 Avail tax saving benefits
Business profits are subjected to taxation
according to different tax slabs.
Businessmen can avail tax saving benefits
as investors.
VI. EXAMPLES
Concrete examples
of such business
organization
EXAMPLES
Concrete examples of such business organizations here in the Philippines:

PHILAM BOUND SOLDIVO BOUND

1 2 SUN LIFE 3
FUND, INC. FUND, INC.
Mutual fund is for conservative Mutual Fund is an investment Moderate-to-high type of fund.
investors seeking to park their company that pools together Recommended to those who
surplus cash and earn from peso money from different investors, have higher risk appetite and
denominated fixed income then invests these in various assets can invest long term.
securities. depending on the goal of the fund

PHILEQUITY PESO PAMI HORIZON

4 5
BOUND FUND, INC. FUND, INC.
The Fund invests in a basket of Suitable for investors who: have
Peso denominated fixed income a medium term investment
securities to generate income. horizon; want a diversified
portfolio of investment in fixed
income and equity securities.
6 SUN LIFE
The Fund invests your cash in
high quality government and
corporate debt issued by the
Philippine government and
prime Philippine companies.
THANK YOU FOR
LISTENING
GROUP 7 – Antiporda, Antonio, Cristobal,
Cruz, Miguel, Natanauan, and Velardo
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[Accessed 15 October 2020].

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Available at: <https://legalvision.com.au/how-do-i-dissolve-a-trust/> [Accessed 15 October 2020].

Millard, L., (2020). How To Dissolve A Trust. [online] Lawpath.com.au. Available at:
<https://lawpath.com.au/blog/how-to-dissolve-a-trust> [Accessed 15 October 2020].

Shintaku-kyokai.or.jp. (2020). Main Points Of The Trust Business Act Amendment (2004, 2006) -
Main Legislation Pertaining To Trusts - Trusts In Japan - Trust Companies Association Of Japan.
[online] Available at: <https://www.shintaku-kyokai.or.jp/en/trusts/trusts05_ 02.html> [Accessed 15
October 2020].
REFERENCES
Trust, P., (2020). The Importance Of Effective Decision Making For Trustees. [online] Pearse-trust.ie.
Available at: <https://www.pearse-trust.ie/blog/the-importance-of-effective-decision-making-for-
trustees> [Accessed 15 October 2020].

Wang S.Y., Lee CF. (2015) Multi-criteria Decision Making for Evaluating Mutual Funds Investment
Strategies. In: Lee CF., Lee J. (eds) Handbook of Financial Econometrics and Statistics. Springer, New
York, NY. https://doi.org/10.1007/978-1-4614-7750-1_ 68

Adityabirlacapital.com. (2020). Mutual Funds For Expanding Your Business. [online] Available at:
<https://www.adityabirlacapital.com/abc-of-money/mutual-funds-for-expanding-your-business>
[Accessed 15 October 2020].

Investor.gov. (2020). Mutual Funds Investor.Gov. [online] Available at:

<https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-
funds-and-exchange-traded-1> [Accessed 15 October 2020].

PESOLAB. (2020). Top Philippine Mutual Funds Of 2019 - PESOLAB. [online] Available at:
<https://pesolab.com/top-philippine-mutual-funds/> [Accessed 15 October 2020].