Understanding About Managed Funds And Employee Share Options

Unlisted means not directly traded on ASX. Rather, sales and purchases of units in the fund are made between the managed fund issuer’s unit registry and the investor. Unlisted fund units are unquoted on any exchange and not be traded anymore.

The difference between listed and unlisted managed funds is that a listed entity is a company structure, buying shares, and the unlisted version is a trust. So, you are buying units. The way the funds will be traded. The listed investment company will be traded on the ASX while the unlisted funds are not.

The unlisted actively managed fund

Today, the investors have a dizzying array of options when speaking to accessing hands-on pro-investment management. Units in an unlisted managed fund is a structure where the investors pool the capital with the other investors. The combined capital is invested into assets like bonds or shares.

Employee share plan

It is the work of the fund manager to handle this matter. But, there are some other lines of areas that the fund manager handled like the employee share scheme. The employees can get shares or buy shares in the company where they are working. It is also known as the following:

  • Employee share purchase plan
  • Equity scheme or share options

employee share scheme

A company uses share schemes to attract, motivate, and retain employees. It also aligns the employee interests with those of the shareholders.

Share schemes – how does it work?

Employees are given the option to buy shares in the company, which they work at a given set of prices, once the options are granted. When the share price increases after the due date, still the employee has the right to purchase the same price as agreed. A lot of employees nowadays are interested as to how they can have a share in the company where they are working.

Given the chance to buy a share in the company, you have to understand how does it work and how you can benefit from it.

Benefits of employee share plan

Employee share schemes have advantages for the employers as well, including:

  • Motivate the employees to work hard and become more productive
  • Aligns employees’ interests with the shareholders
  • Recruiting new talent
  • Retaining valuable employee
  • Compensating lower salaries
  • relieving pressure on cash flow

The employees will be more productive while the company increases its sales. In the end, it will be a win-win situation. The company must plan all about these with the help of a fund manager.