Standard unit trust deed

Question: what is a unit trust?

Answer:

Unit trusts are essentially structures where assets are held and administered by the trustee upon trust for the holders of units in the unit trust fund. The entitlement of unitholders to income and capital from the trust fund is dependent solely upon the number of units held by them.

Question: what are the general principals underlining a unit trust?

Answer:

* The rights of the unitholders under the trust deed do not confer upon them any direct ownership or property in any of the assets of the trust fund.

* Unitholders are entitled to distributions of capital and income made by the trustee in accordance with the terms of the trust deed in proportion to the number of units held by them.

* Units may be transferred and redeemed by the trustee subject to such restrictions as may be contained in the trust deed.

* The trustee's powers as to the administration of the trust fund may be controlled to varying degrees by the unitholders.