Understanding Interests In Managed Investment Schemes

A managed investment scheme is a type of unit trust, where investors' money is pooled together and used by an investment manager to buy and sell assets, such as cash, shares, bonds and listed property trusts, on their behalf. An interest in a managed investment scheme is a financial product unless specifically excluded. For example, if a scheme has fewer than 20 members, it will not be regarded as being 'in the business of promoting managed investment schemes'.

A managed fund is a type of investment where your money is pooled together with other investors

A managed fund is a type of unit trust. Investors' money is pooled together and used by the investment manager to buy and sell assets such as cash, shares, bonds and listed property trusts on their behalf. The value of the units or shares will rise and fall with the value of the underlying assets. By pooling funds, investors can gain access to investment opportunities that they may not be able to access if acting on their own.

Managed funds are open-ended, meaning that new units are created as investors join the fund and units are cancelled as investors redeem. When an investor invests in a managed fund, they are assigned units proportionate to the amount of money they have invested. It is important to note that investors do not own the underlying investments, they own 'units' in the fund or 'shares' in the CCIV.

A managed fund is a 'registered managed investment scheme', which is a type of unit trust

An interest in a managed investment scheme is a financial product unless specifically excluded. A managed investment scheme (MIS) is a type of investment where your money is pooled together with other investors. A fund manager then buys and sells assets, such as cash, shares, bonds and listed property trusts, on your behalf.

A managed fund is a registered managed investment scheme, which is a type of unit trust. By using a managed fund, investors' money is pooled together and is used by the investment manager to buy investments and manage them on behalf of all investors in the fund. By pooling funds, investors can gain access to investment opportunities that they may not be able to access if acting on their own. Being a unit trust, when an investor invests in a managed fund they are assigned units proportionate to the amount of money they have invested. A managed fund is open-ended, meaning that new units are created as investors join the fund and units are cancelled as investors redeem.

It is important to note that a single scheme with fewer than 20 members will not be regarded as being "in the business of promoting managed investment schemes". This means that interests in the managed investment scheme are not financial products. This is why family trusts will not usually be regulated by ASIC even though they are, technically, managed investment schemes.

An interest in a managed investment scheme is a financial product unless specifically excluded

A managed fund is a type of investment where your money is pooled together with other investors. A fund manager then buys and sells assets, such as cash, shares, bonds and listed property trusts, on your behalf. Managed investment schemes and Corporate Collective Investment Vehicles (CCIVs) are different types of managed funds. You don't own the underlying investments, you own 'units' in the fund or 'shares' in the CCIV. The value of the units or shares will rise and fall with the value of the underlying assets.

A single scheme with fewer than 20 members will not be regarded as being “in the business of promoting managed investment schemes”. If all of the following are not met, then interests in the managed investment scheme are not financial products at all. This is why family trusts will not usually be regulated by ASIC even though they are, technically, managed investment schemes.

Any of the contributions are to be pooled, or used in a common enterprise, to produce financial benefits, or benefits consisting of rights or interests in property, for the people (the members) who hold interests in the scheme (whether as contributors to the scheme or as people who have acquired interests from holders).

If a managed investment scheme is promoted by a person in the business of promoting managed investment schemes, it must be registered

A managed investment scheme is a type of unit trust. Investors' money is pooled together and used by the investment manager to buy investments and manage them on behalf of all investors in the fund. By pooling funds, investors can gain access to investment opportunities that they may not be able to access if acting on their own. When an investor invests in a managed fund, they are assigned units proportionate to the amount of money they have invested. The value of the units or shares will rise and fall with the value of the underlying assets.

Some managed funds also pay income or 'distributions'. The underlying assets of the scheme will determine the type of benefits that are possible. For example, the benefits could be financial or consist of rights or interests in property.

It is important to note that a single scheme with fewer than 20 members will not be regarded as being "in the business of promoting managed investment schemes". This means that interests in the managed investment scheme are not financial products.

A managed investment scheme is different from a Corporate Collective Investment Vehicle (CCIV)

A managed investment scheme is a type of unit trust where investors' money is pooled together and used by the investment manager to buy and sell assets such as cash, shares, bonds and listed property trusts on their behalf. An interest in a managed investment scheme is a financial product unless specifically excluded.

Frequently asked questions