What is a Unit Trust?
A Unit Trust invests a pool of money, collected from a number of investors, in a range of assets. By pooling your money with that of other investors, you’ll be able to invest in a wide range of assets. Successful investments in the assets add value to the fund and their returns and capital are then distributed back to investors
- A Singapore unit trust does not have separate legal personality and is governed by the manager (overseen by the trustee) in accordance with the terms of the trust deed entered into between the trustee and the manager. The assets of a unit trust are held by the trustee, which is liable for the debts and obligations of the unit trust. The trust deed and the register of unitholders are typically not made available to the public.
- A unit trust may be established as either a standalone fund or as an umbrella fund with one or more sub-funds, each of which may have segregated assets and liabilities from the other sub-funds in the umbrella.
- The terms in relation to the issue or redemption of units in a unit trust and the distribution of capital or income to unitholders are governed by the trust deed of the unit trust.