Unit trusts

Question 1

Who is the trustee?

Answer 1

Legal owner of underlying assets

Question 2

Who are the beneficiaries

Answer 2

The unit holders who must take care of the trust

Question 3

What do the investors do for the trust?

Answer 3

They buy units and the money is then invested in a diversified portfolio of assets like shares bonds or both.

Question 4

Is a unit trust open or close ended?

Answer 4

Open

Question 5

Role of unit trust manager?

Answer 5

Choosing correct investments that are legal, deciding what to buy and sell and when, creating a market for investors to buy or sell units, daily pricing of units

Question 6

Role of trustee

Answer 6

Holds assets for the benefit of the unitholders, protects investors interests, responsible whenever units are made

Question 7

AUTs

Answer 7

Investors buy and sell in an AUT from the manager and are regulated