Public unit trusts may be listed on the Stock Exchange. Whether listed or not, they are:
Public unit trusts are:
The return on unit linked investments may be:
If the unit price remains fixed, the return is in the form of interest allocations only, as with cash management and mortgage trusts.
Investors may have one of the following three investment options with a unit trust investment:
The following table describes the different types of public unit trusts.
Type |
Description |
Common fund |
Unit trusts operated by a public trustee company. Most common funds are similar to cash management trusts, as the:
Common funds, depending on the portfolio of the fund, may also be similar to:
|
Cash management trusts |
Cash management trusts:
Investors purchase units in the trust, and the trust manager invests the funds in government, semi-government, and other short term fixed interest securities. |
Type |
Description |
Mortgage trusts |
Mortgage trusts are:
During the life of the loan the trust receives interest, which is passed on to unit holders as distributions of income, usually monthly or quarterly. |
Bond trusts |
Bond trusts:
They are also known as:
|
Type |
Description |
Property trusts |
Property trusts:
Capital growth is through:
Income distributed to unit holders is generally from rents received on the properties. |
Equity and imputation trusts |
Equity trusts:
Imputation trusts are equity trusts that take advantage of the dividend imputation provisions of the Income Tax Assessment Act. |
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16027%23comment-form