| Company structure |
Trust structure |
| Listed on the ASX |
Unlisted |
| Buy and sell on the ASX |
Apply to fund directly to buy or sell units in the trust |
| Trade plus 2 days settlement on the ASX |
Depends on the withdrawal conditions contained in the fund PDS |
| Pays a dividend, usually fully franked |
Pays a trust distribution which may contain various tax treatments including fully franked dividends |
| Closed end structure where the number of shares on issue is determined by the Board. Given the shares on issue do not vary greatly the share price is determined by demand against the relatively fixed supply of shares. In this context the shares may trade at a discount or premium to the underlying value of the fund per share |
Unit price is close to underling value of the portfolio per unit |
| Fund flows do not impact investment process and investment decisions as level of funds are relatively constant given the closed end nature of the fund |
Open ended structure where the fund manager needs to purchase and sell holdings in response to the flow of funds in and out the fund |
| Depends on the LIC but usually lower cost |
Depends on the fund but usually higher direct and indirect manager fees |
| Returns are after tax paid, usually as fully franked dividends |
Returns are distributed untaxed, as a result the investor may inherit unknown tax consequences |
