What is a managed investment scheme?
A managed investment scheme (MIS) in Australia is where multiple investors pool their money together to purchase a larger property asset than they otherwise would be able to on their own.
When talking about MISs offering commercial real estate investment and residential property investment, ownership of the property is shared among the investors in the scheme, and so are the returns (and outgoings) that are generated from the property investment.
By its nature, a managed investment scheme is overseen by a manager, typically a Pty Ltd business (or public company). This manager will make the major decisions related to the property purchase, the management of the asset, and even its investment.
What types of managed investment schemes are there?
There are a range of schemes considered an MIS:
- Property schemes
- Cash management trusts
- Australian shares schemes (ASX)
- International equity schemes
- Exchange traded funds (ETFs)
- Mortgage schemes
- Agricultural schemes
A direct property fund is a managed investment scheme. You’ll want to ensure, before placing your money with such a fund, that the manager of the fund is registered with the Australian Securities and Investments Commission (ASIC). This means they hold an Australian Financial Services License (AFSL) and comply with the stringent conditions laid out by ASIC in operating a compliant investment business.
Want more information on how to invest in commercial property through a managed investment scheme? Properties & Pathways invests alongside our investors in every managed property trust. Get in touch with us today to learn more, or subscribe to our investment updates to be the first to know about our next investment opportunity.