blind trust

A trust whose owner cannot be informed about which investments have been bought or sold. This kind of trust is created when someone puts his or her assets into a trust and gives a fiduciary party, such as a bank or asset manager, complete authority to make investments on his or her behalf. Blind trusts are often set up by politicians or high-ranking government officials as a way of avoiding potential conflicts of interest by investing on issues or creating government policies that could benefit individual investments.