There is a fiduciary relationship between a trustee and a beneficiary. Explain what this means and describe the duties imposed by such a relationship. 
4.2   In 2005, Settlor creates a discretionary trust in favour of a defined class of beneficiaries that comprises current and future members of his family, and transfers the following assets to Trustee to hold upon the terms of such trust:  
 
 
 
(a) a villa situated in California valued at $2 million; and 
 
(b) a portfolio of stocks issued by banking and lending institutions worth $3 million. 
 
 
 
When the US housing bubble burst the value of the villa fell to $750,000 and, in the financial crisis that followed, the value of the shares fell to $1 million.   Analyse the liability, if any, of Trustee for the loss suffered by the trust fund in these circumstances.