As noted by Migration Alliance: Austrade have confirmation of the new SIV investment regime effective 1 July, 2015. On initial review of the draft options and final frameworks documents (attached) the main differences are:
– the Venture Capital has been reduced to $500k although may rise to $1M within 2 years. Have addressed the “uncalled capital” question by having the remainder of the committed funds held in escrow in a Cash Management Trust or Australian bank account as security for a bank guarantee in favour of the Venture Capital fund
– Emerging companies still $1.5M although allowing up to 10% in foreign companies i.e. New Zealand (this may mean we have additional group product that meets the requirements)
– For Balancing Investments, the addition of Listed Investment Companies (LIC’s) as well as holding the complying assets through managed funds.
The wording for Corporate bonds is: “Corporate bonds or notes issued by an Australian exchange listed entity (or wholly owned subsidiary of the Australian listed entity) or investment grade rated Australian corporate bonds or notes rated by an AFS licensed debt rating agency.”