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Welcome to Henry Davis York's Collective Investment Vehicles (CIV) hub. This hub is a central repository for general information about CIVs to help you navigate the complexity of the proposed regime. We will update this hub as the design of the regime progresses.
CIVs allow investors to pool their funds and have them managed by a professional fund manager. Unlike Australian unit trusts, corporate CIVs and limited partnership CIVs are well understood by foreign investors, and are aimed to take advantage of the Asia Region Funds Passport.
For more information on the introduction of the CIV regime into Australia, refer to our CIV Fast Facts flyer or contact one of our experts.
The new CIV regime is a game-changer with the potential to redefine and transform the Australian investment funds landscape.
We believe the new CIV regime will:
- Enable Australian managers to market and offer innovative, competitive and passportable products
- Encourage foreign investment into Australia with globally recognisable fund structures, and
- Grow our exports of Australian funds management services.
Two CIV options are proposed to be introduced:
- Corporate CIV (proposed start 1 July 2017): This option provides the ability to invest through a company structure, whilst providing flow-through taxation to investors (as if they invested directly). This option is suited to most investment products, particularly those offered to retail investors.
- Limited Partnership CIV (proposed start 1 July 2018): This option provides for limited liability, with flow-through taxation to investors (as if they invested directly). It is best suited to wholesale investment, including overseas pension funds and infrastructure. Currently, Australian limited partnerships are generally taxed as companies.
We anticipate the potential benefits of CIVs include:
- Globally recognised fund structures encouraging foreign investment into Australia
- Single vehicle for both domestic and foreign investors
- Economies of scale – this means lower administrative and operational costs that can be passed onto investors as lower fees and expenses
- Structural flexibility – the possibility of having multiple sub-funds under the one umbrella
- The ability for Australian funds to become more exportable – including under the Asia Region Funds Passport.