The way in which a fund is structured, both legally and for tax purposes, can have a significant impact on the outcome for investors and the Investment Manager. MARQ Trustees is well placed to advise and assist in identifying the best legal, commercial, and tax efficient structure for a proposed investment.

There are multiple factors to be considered, including asset class, investment strategy (capital growth or income yielding), number and type of investors, investor tax residency, different classes of units/interests in the fund, whether the units/interest will be fully or partly paid, whether capital will be committed and called in tranches or paid in full upfront, whether distributions will be paid or reinvested, withdrawal mechanisms and performance fee optimisation. It is worth noting that how a fund is taxed depends on whether it is classed as a managed investment trust, an attribution managed investment trust, a public trading trust, or whether it is under the general taxing provisions of the Tax Act that apply to trusts.

MARQ Trustees has a trusted panel of law firms that has served our clients well for many years, across most, if not all, asset classes. All firms on our panel are ranked as ‘leaders in investment funds’ Australia-wide by Chambers Asia Pacific Guide, and recognised on the list of Best Lawyers in Australia. Drafting the Fund’s Constitution (Trust Deed) and other transaction documents is a collaborative process in which lawyers draft, and MARQ Trustees reviews, the requisite documents. This ensures they are fit for purpose in meeting the commercial objectives and desired tax outcomes.

The target return is a key driver of the Fund’s investment proposition. It is therefore crucial that the financial model and calculations are accurate. This requires sophisticated financial modelling of the investment proposition, including the timing of equity flows, debt flows, pipeline investments, distributions to investors, and returns of capital. The model should be tested across a range of assumptions to build the best result. MARQ Trustees can assist in this process, and have an independent expert verify and endorse the target return – giving investors added confidence in its veracity.

Investment capital in Australia is divided into three distinct pools – Institutional, Adviser, and Investor. Marketing to each – and accounting for their unique expectations and requirements – is very different to marketing to people acquiring products or services. The decision-making criteria is framed within a different worldview, and it is often guided by third-party advice. Regulators add to that mix with their own strong views on what investment managers are permitted to do and say.

MARQ Trustees is aligned with fund branding, marketing, and communications experts. They have the experience and skills to position your Fund as an attractive proposition to the targeted investor market, while staying in line with the highly regulated framework of a managed investment scheme. This enables you to take your Fund to market with a powerful investment proposition, well explained, professionally presented, and produced in whatever on-line and off-line formats you need to support your sales process.

MARQ Trustees’ network extends to accurate and culturally-targeted translation and marketing services across a range of languages including Chinese (Mandarin, Cantonese, and Simplified), Japanese, Korean and Hindi.

The exposures arising from investment activities are significant and compensatory claims or regulatory inquiries against investment managers and their directors may be intertwined. Investment Managers Insurance (IMI) is a suite of insurance covers designed so that a single policy, issued by one insurer, responds to the common exposures faced by the industry. MARQ Trustees’ panel of insurance brokers are experts in this highly specialised area and can provide expert advice and guidance in brokering the appropriate types and level of cover.

MARQ Trustees’ research partner covers sector level research, ratings, and recommendations on listed and unlisted property funds. Over the last decade, their team has evaluated over 500 different funds. Property funds that achieve a rating of ‘strongly recommended’ or ‘recommended’ gain considerable credibility with investors. These ratings are often essential before a fund can be included on financial planners’ approved investment product list. The report is published on the company’s website, and distributed to a wide network of investors, financial planners, advisers, and property professionals.

Knowing your capital raising options and obligations – who you can target and how – enables you to raise money confidently and in compliance with the law. This is not an area where you want to make mistakes. In addition, MARQ Trustees can provide you with broad guidance on available capital raising channels, and connect you to experts in this space where your marketing budget, timeframe, investment sector, and other criteria are a good fit.