Explanation

Answer Example

During economic uncertainty, I focus on diversifying the trust portfolio across asset classes, including equities, fixed income, and alternative investments. I also recommend increasing exposure to defensive assets like government bonds and reducing high-risk holdings. For example, during a recent market downturn, I rebalanced a $100 million trust portfolio by increasing allocations to fixed income, which mitigated losses and preserved principal while maintaining liquidity for future distributions. This approach ensures the trust’s objectives are met even in volatile markets.