Corporate collective investment vehicle (CCIV)

Definition

A corporate collective investment vehicle (CCIV) is a type of investment fund structure designed to promote collective investment while offering greater flexibility and international recognition.

What is a corporate collective investment vehicle?

Corporate collective investment vehicles aim to modernise Australia’s investment fund industry by offering a flexible, internationally competitive framework that meets the needs of both domestic and global investors seeking diversified and professionally managed investment opportunities. It aims to improve Australia’s competitiveness as an investment hub by aligning with global standards for fund structures.

CCIVs are typically used for managed investment schemes where multiple investors pool their funds for investment in various assets managed by a professional fund manager. Unlike traditional Australian managed investment schemes, CCIVs have a distinct legal entity structure, similar to a company, which provides a separate legal personality from its investors. This structure offers benefits such as limited liability for investors and potential operational efficiencies.

The CCIV framework also includes regulatory safeguards to protect investors’ interests. It requires CCIVs to choose an Australian-based fund manager and comply with stringent governance, disclosure, and reporting requirements overseen by the Australian Securities and Investments Commission (ASIC). 

Internationally, CCIVs are recognised as an attractive vehicle for cross-border investments due to their familiar corporate structure and alignment with global fund industry standards. This recognition can promote easier access to international markets and attract foreign investors looking for stable and well-regulated investment opportunities.

Example of a corporate collective investment vehicle

A multinational asset management firm establishes a corporate collective investment vehicle in Australia to attract global investors interested in diversified portfolios. 

The CCIV structure allows the firm to pool funds from international clients into a single entity with its own legal personality. This setup provides investors with limited liability and the assurance that their investments are managed by the firm’s Australian-based fund managers according to regulatory standards.