This session looks at investment trusts, including MITs and AMITs, from the eyes of the investor, exploring:
- Differences between unit trusts, MITs and AMIT
- Implications for different investor holding structures, e.g., “widely held”
- “Fixed entitlement”, “clearly defined rights” and “safe harbour”
- What they can do and invest in. Control of businesses, “negative control” and when a trust can be taxed like a company
- Licensing
- Distributions of income and capital from the different vehicles. “Present entitlement” and “attribution”
- Implications of exit by disposal to a third party or redemption, and issues for the “last person standing”; and
- Approaches to drafting the trust deed, including for periods when the trust is (or is not) an MIT/AMIT.