Managed Fund - Tutorial 4 Managed Fund Learning objectives...

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Tutorial 4 – Managed Fund Learning objectives What is managed fund? What is the structure of the managed fund? Distinguish between active and index fund Question! How are these two variations different? ANS: They are different in terms of taxation & conditions of release Managed investment scheme Superannuation Taxation Company is not taxed on earnings and capital gains if all those benefits are paid out as distributions to unit holders. Earning is taxed at 15% and capital gain is taxed at 10% Condition of release Generally any time. Investors generally cannot withdraw until the age of 65 Variations of managed funds Managed investment scheme (also called managed trust, pooled fund, investment trust, unit trust) Superannuation
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Managed funds Pool money from a large number of investors Managed by professional investor Regulated by ASIC (for investment management schemes) & APRA (for superannuation funds) All persons providing investment advice must be licensed by ASIC Generally stipulate minimum initial investment ($1000), additional deposit ($500)and balances ($500) Different parties within a fund 1. Investment company hires fund managers, establishes the trust, issues units and looks after admin issue 2. Fund managers invest and make $$$ 3. Trustees hold the assets of the trust in their names and safeguard the assets – but they don’t take an active role in investment decisions 4. Unit holders receive $$$ or lose $$$ depending on fund performance
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