Managed investments - adding a new investment 108-04090020

Unitised managed investment prices are automatically revalued every 6 months in March and September.

Customers must be advised they are required to notify of changes to the number of units they own.

Margin loans, unregistered managed investments/superannuation funds, account based managed investments/superannuation funds and personal investment funds (also known as a master trust), are manually reviewed every 6 months.

Customer must be advised they need to notify changes to:

• balance of their margin loan(s)
• value of their unregistered managed investment(s)/superannuation fund(s)
• value of their account-based managed investment(s)/superannuation fund(s)
• changes in the investment held within a personal investment fund portfolio (also known as a Master Trust)

If there is a small change to asset values check if the customer needs to notify.

A Public Trustee may be appointed as guardian or administrator to manage the personal affairs of someone who is unable to do this for themselves. It is similar to a power of attorney arrangement.

The person's own investments will be managed on their behalf, although the Public Trustee may invest their funds in their own investment trusts, similar to personal investments in other managed funds. Interest and earnings from investments managed in this way will be declared on a customer's personal tax return.

A Public Trustee may also be appointed as trustee of a trust fund set up to hold assets on behalf of a beneficiary. Some examples are testamentary trusts, statutory trusts set up by the courts and protective trusts set up for children. In this type of arrangement, investments are made in the name of the trust. The beneficiary may receive income and capital distributions from the trust as determined by the trustee within the terms of the Will, trust deed or rules.

The income received from the investments will be part the income of the trust. It will be declared on the trust tax return, which will have statements of distribution to beneficiaries. Distributions paid to a beneficiary will show on their personal tax return as a trust distribution, see Protective and statutory trusts for persons unable to handle their own affairs. These type of cases need to be referred to a Complex Assessment Officer.

In many cases the Public Trustee will be managing the personal funds of a customer under an administration order. These are not a trust and the funds need to be coded on the customer's personal record.

If the managed investment has an Asia Pacific Investment Register (APIR) code, only code on the Managed Investment Product List (MIP) screen. Do not code these investments on the Direct Investments (SVDI) or Unregistered Managed Investments (MIUS) screens.