Authorised Unit Trust characteristics describe management, pricing, and settlement; open-ended; dual-priced; trading and settlement with the authorised manager; NAV-based pricing; created by the trustee.

• A. Authorised Unit Trust
• B. OEIC
• C. ICVC
• D. Investment Trust

Answer: (A)

These features describe how an Authorised Unit Trust operates. It is set up as a trust and created by a trustee, with assets held on behalf of investors. It is open-ended, meaning new units can be issued and existing ones redeemed as investors enter or exit, with prices based on the fund’s net asset value per unit. Some authorised unit trusts use dual pricing, where the price to buy is higher than the price to redeem, to help control dilution from dealing costs. Dealing and settlement occur with the authorised manager rather than on a stock exchange, reflecting its trust-based structure. These characteristics—trust creation, open-ended structure, NAV-based pricing and potential dual pricing, and dealings with the manager—fit the profile of an Authorised Unit Trust, rather than the corporate structures of OEICs/ICVCs or the closed-ended, exchange-traded nature of Investment Trusts.