(as defined in section 236 of the Act (Open-ended investment companies)) a collective investment scheme which satisfies both the property condition and the investment condition:
- (a) the property condition is that the property belongs beneficially to, and is managed by or on behalf of, a body corporate ("BC") having as its purpose the investment of its funds with the aim of:
- (i) spreading investment risk; and
- (ii) giving its members the benefit of the results of the management of those funds by or on behalf of that body;
- (b) the investment condition is that, in relation to BC, a reasonable investor would, if he were to participate in the scheme:
- (i) expect that he would be able to realise, within a period appearing to him to be reasonable, his investment in the scheme (represented, at any given time, by the value of shares in, or securities of, BC held by him as a participant in the scheme); and
(see also investment company with variable capital.)4
- (ii) be satisfied that his investment would be realised on a basis calculated wholly or mainly by reference to the value of property in respect of which the scheme makes arrangements.