How Is a Managed Investment Scheme Taxed?
A managed investment scheme or managed fund is a type of collective investment vehicle such as public unit trust. In such a trust, investors hand over money or other assets to a professional manager who manages the total funds to produce a return that is shared by investors. As members of the scheme, investors hold units in the trust that represent a proportional benefit as an entitlement to the trust assets. Managed investment schemes cover a variety of investments, including cash management trusts, property trusts and timeshare schemes. However, they do not encompass regulated superannuation funds, ADFs or term deposits. …
The proceeds from the mere realisation of the capital assets or from the change of investment not give rise to income according to ordinary concepts or talk profit arising from a profit-making undertaking or plan within the meaning of the legislation, even if the realisation that changes carried out in the most advantageous manner. Of course, the capital gains tax provisions may apply in relation to property acquired on or after the 1985.