'An Act to make fresh provision with respect to investment by trustees and persons having the investment powers of trustees ......'

New powers of investment of trustees

1.--(1) A trustee may invest any property in his hands, whether at the time in a state of investment or not, in any manner specified in Part I or II of the First Schedule to this Act or, subject to the next following section, in any manner specified in Part III of that Schedule, and may also from time to time vary any such investments.

(2) The supplemental provisions contained in Part IV of that Schedule shall have effect for the interpretation and for restricting the operation of the said Parts I to III.

(3) No provision relating to the powers of the trustee contained in any instrument (not being an enactment or an instrument made under an enactment) made before the passing of this Act shall limit the powers conferred by this section, but those powers are exerciseable only in so far as a contrary intention is not expressed in any Act or instrument made under an enactment, whenever passed or made, and so relating or in any other instrument so relating which is made after the passing of this Act.

For the purposes of this subsection any rule of the law of Scotland whereby a testamentary writing may be deemed to be made on a date other than that on which it was actually executed shall be disregarded.

(4) In this Act "narrower-range investment" means an investment falling within Part I or II of the First Schedule to this Act and "wider-range investment" means an investment falling within Part III of that Schedule.

Restrictions on wider-range investment.

2.--(1) A trustee shall not have power by virtue of the foregoing section to make or retain any wider-range investment unless the trust fund has been divided into two parts (hereinafter referred to as the narrower- range part and the wider-range part), these parts being, subject to the provisions of this Act, equal in value at the time of the division; and where such a division has been made no subsequent division of the same fund shall be made for the purposes of this section, ...

Relationship between Act and other powers of investment.

3.--(1) The powers conferred by section one of this Act are in addition to and not in derogation from any power conferred otherwise than by this Act of investment or postponing conversion exerciseable by a trustee (hereinafter referred to as a "special power").

(2) Any special power (however expressed) to invest property in any investment for the time being authorised by law for the investment of trust property, being a power conferred on a trustee before the passing of this Act or conferred on him under any enactment passed before the passing of this Act, shall have effect as a power to invest property in like manner and subject to the like restrictions as under the foregoing provisions of this Act. ... // ... // ... First Schedule // Manner of Investment // Part I // Narrower-range investments not requiring advice //

1. In Defence Bonds, National Savings Certificates......

2. In deposits in the Post Office Savings Bank, ordinary deposits in a trustee savings bank and deposits in a bank or department thereof certified under [Finanace Act 1956 sec.9(3)].

Part II // Narrower-range investments requiring advice //

1. In securities issued by [HMG in the UK] ...//... ... [various other fixed-interest securities]

Part III // Wider-range investments

1. In any securities issued in the UK by a company incorporatedin the UK,.... //...[certain other shares ....]