Investor and Investment Process

Question 1

The benefits of a managed fund are?

Answer 1

• Diversification
• Expertise at investment management
• Lower transaction costs

Question 2

Factors impacting the size of a fund market

Answer 2

1. access to well-developed capital markets,
2. household demand for well-diversified investments,
3. strong and appropriate regulation of funds and financial markets,
4. availability of distribution structures that facilitate access to regulated funds,
5. regulated fund returns and costs relative to other available investment products,
6. demographics,and
7. high or improving levels of economic development

Question 3

Listed investments are?

Answer 3

investment funds listed on a

public stock exchange (e.g. ASX)

Question 4

Unlisted investments are?

Answer 4

bought and sold through the manager of the investment fund or via a licensed dealer such as a financial planner.

Question 5

Major differences between Listed and Unlisted investments are?

Answer 5

1. Value
2. Tax perspective
3. Closed
4. Liquidity

Question 6

investment policy statement provides

Answer 6

the general investment goals and objectives of the managed fund, and describes the strategies that the manager will use to meet the objectives.

Question 7

The PDS is a regulatory document and must include information about?

Answer 7

key features, investment policy, fees, commissions, benefits, risks and the complaints handling procedure.

Question 8

The typical fees charged by a managed fund is?

Answer 8

• Contribution and withdrawal fees

- Ongoing fees

Question 9

Single vs multi-asset diversified funds

Answer 9

Single-asset funds focus on a particular asset class (e.g. commercial property, equity, fixed income, cash)
• Multi-asset funds invest in multiple asset classes.
Superannuation schemes tend to offer their members
multi-asset funds.