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.
AUTHOR
Hannah Wootton
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