Investment in unlisted trusts growing


Investment in unlisted trusts grew to over 750,000 transactions in the six months to 31 December, 2017, with the asset type now representing a large portion of institutional investment, according to the Australian Custodial Services Association (ACSA).
ACSA said that while unlisted unit trusts (also known as managed funds) had traditionally been a problematic security type, they were showing growing popularity.
Challenges faced by those investing in unlisted trusts include a lack of central exchange, a high incidence of non-standard and manual processes, and no constituent data depository for key managed fund characteristics.
ASCA said that it was working with the market to identify areas of reform to help improve investment in the asset type for owners, fund managers and other participants.
It pointed toward the development of the Asia Region Funds Passport and Corporate Collective Investment Vehicles, both of which are underpinned by government policy, as examples of emerging opportunities to improve the managed fund space.
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.