Trustee

One Investment Group holds several Australian Financial Services Licences, authorising its subsidiaries to act as Trustee to unregistered managed investment schemes.

Managed Investment Schemes are a means of pooling funds and are frequently used in:

  • Listed real property and infrastructure schemes
  • Unlisted property trusts and syndicates, and mortgage funds
  • Cash, bonds, equity and multi-sector managed funds
  • Timeshare, horse breeding or racing, serviced strata and film schemes
  • Various agribusinesses, including forestry

A trust is a tax-efficient vehicle for collective investments, in that investors with different tax profiles (for instance, companies, pension funds, individuals) can invest together without adversely affecting their tax positions. Most Managed Investment Schemes involve the use of a trust.

Whilst there is no prescribed structure for a Managed Investment Scheme, the various types of trust, contractual, limited partnership and other schemes have key common features including:

  • Contributions of members of the Managed Investment Scheme either are to be pooled or, if not pooled, are to be used in a common enterprise
  • Members receive contractual or property ‘interests’ in the scheme, being ‘financial products’ regulated by Chapter 7 of the Corporations Act
  • The scheme is operated by the Trustee, given that an Managed Investment Scheme is not a separate legal entity and therefore cannot enter into legal relationships in its own right
  • Investors do not have day-to-day control over the operation of the Managed IS (though they may have the right to be consulted or to give directions)

The definition of Managed Investment Scheme can be found in section 9 of the Corporations Act. This also sets out a number of specific exclusions. Some examples that are not Managed Investment Schemes provided by the Australian Securities and Investment Commission include:

  • Regulated superannuation funds
  • Approved deposit funds
  • Debentures issued by a body corporate
  • Barter schemes
  • Franchises
  • Direct purchases of shares or other equities
  • Schemes operated by an Australian bank in the ordinary course of banking business (eg term deposit).

One Investment Group offers trustee services to unregistered managed investment schemes. One Investment Group can undertake the following activities:

  • Production of offer documents
  • Overseeing investment decisions
  • Adhering to legislative and regulatory requirements
  • Custody services
  • Management of external service providers
  • Scheme administration
  • Fund and unit accounting
  • Registry services

As the fund’s trustee, we would be responsible for the compliance and governance of the trust. We will ensure that the trust operates within the confines of its trust deed, disclosure documents and legal requirements.

One Investment Group’s experienced team has a deep understanding of trust administration across a variety of trust structures, trust assets and for a range of clients which has developed over a period in excess of 20 years.

One Investment Group’s trustee team can assist in the establishment in addition to the ongoing compliance and governance responsibilities of trust.

One Investment Group can also act as a Responsible Entity for registered schemes.