What is a Managed Investment Trust?

Sentinel is one of the leading managed investment funds, Australia-wide

It’s a widely held view that investing in the property market can be a daunting task, especially for those who are new to the world of property investment. However, with the right knowledge and guidance, investors can achieve their goals and secure their financial future. One option for investors is to explore a managed fund, which provides investors with a unique opportunity to invest in a diversified financial product (property portfolio) managed by experienced professionals. 

At Sentinel Property Group, we are dedicated to offering our clients various investment opportunities in the Australian commercial property market. Below, we delve into the world of managed investment property funds and explore how they can benefit Australian investors.

Managed Investment Trust Australia

Understanding Managed Investment Trusts

A managed investment trust (MIT) is a pooled investment vehicle that allows individuals to invest in a diversified portfolio of assets managed by professionals within a managed investment scheme. The income generated from the unit trust is distributed to investors regularly, providing them with a steady stream of income. Sentinel’s unit trusts hold a variety of commercial, industrial, and development property assets, such as shopping centres, retail outlets, office buildings and manufacturing hubs. 

Benefits of a Managed Investment Fund

One of the significant benefits of investing in managed investment schemes is the diversification they offer. Unlike direct property investment, where the investor bears all the risk and expenses, MITs offer a diversified portfolio of the fund’s assets, reducing the risk of loss. Additionally, as MITs like Sentinel professionally manage passive investments on behalf of our individual investors, you can benefit from the expertise of experienced and skilled investment fund managers who make decisions on behalf of the trust.

Tax Benefits of Managed Investment Trusts

Investors in managed investment trusts can also benefit from tax advantages. As managed funds are considered trusts for tax purposes, income earned is distributed to investors as trust income, which is generally taxed at a lower rate than personal income tax rates. Additionally, investors can claim depreciation deductions on the underlying assets held by the trust (for certain assets), which can reduce their taxable income. 

Are Managed Investment Trusts Suitable for Australian Investors?

Managed investment trusts offer Australian investors a unique opportunity to invest in a diversified portfolio of assets and achieve their financial goals. However, investors should consider their investment goals, cash management, a fund’s past performance, risk appetite, and financial situation before investing in a managed investment trust. As a leading financial adviser and fund manager, Sentinel offers various investment options within our fund to ensure strong future performance, including managed commercial property investment trusts, to cater to the needs of all investors.

For further information on each of Sentinel’s managed funds, find out more here.