What Is an Infrastructure Trust?

The so-called structured trust refers to the trust company's hierarchical allocation of trust beneficiary rights according to different risk preferences of investors, so that investors with different risk-bearing capabilities and willingness can obtain different returns by investing in different levels of beneficiary rights, Collective fund trust business that bears corresponding risks.

Structured trust

Structured trust

There are two operating conditions for structured trusts: one is the standardization and integration of various financial services; the other is a sound legal system.

This is actually a question of commercial feasibility and production feasibility. The simplest thinking formula for business feasibility is: profit = revenue-cost. Structured trust has two calibers of profit, income and cost. One is

When designing any financial product, it is always necessary to balance its efficiency and security, and there is a balance between cost and effectiveness. The distinguishing feature of structured trust is the multiple subjects and professional division of labor. This is a "professional + firewall" style service architecture. The advantages of this structure are obvious, but the requirements for management coordination and supervision are very strong. Management coordination and supervision all require manpower, time and resources, so the test of efficiency and corresponding costs is great. What we have seen and heard, we believe that policy makers and financial institutions do not have enough understanding of the cost issue.

Taking the enterprise annuity trust as an example, the trustee is the management center and information center. It undertakes the functions of selecting, supervising, evaluating and replacing investment managers, account managers and custodians, and outsources the corresponding trust services. This structure seems clear, but the actual operation is very complicated. If these services are undertaken by an organization, the main work is to divide the work according to the functions of the department, and some of the work is undertaken or coordinated by the competent manager. There are both clear and vague processing. These services are now undertaken by multiple agencies. The boundaries of division of labor have been changed from departmental boundaries to organizational boundaries. The basis for division of labor has been changed from internal systems to administrative regulations and commercial contracts. Jobs that were not originally divided or difficult to divide may be separated. In order to define "relationships" and manage "relationships", energy and resources are invested. On the surface, the contractual relationship of the enterprise annuity fund management is reflected as a trust relationship and three entrusted relationships among the five parties, but in fact, the number of relationships needs to be clarified is a concept of mathematical combination, and the time span that needs to be coordinated from the trust's The establishment, existence and termination. ^[1]