• Q & A:
  • How does a Managed Fund work?

    In a managed fund, your money is pooled with money from other investors. A professional investment manager uses the money to buy and sell assets. Some funds invest most of their money in a traditional asset class, such as cash, fixed interest securities, property securities or shares (Australian or international). Others invest in a mix of these. A roughly equal mix will result in a ‘balanced’ fund. After taking fees and costs into account, you will receive the benefit of any income earned in the fund, paid to you as a distribution.

    The capital value of your investment rises or falls with the value of the underlying assets.

  • Why are managed funds so popular?

    Every fund varies, but some of the benefits include:

    - It’s easy to diversify your investments

    - You have the benefit of the skills and knowledge of investment professionals who make the investment decisions

    - It’s easy to reinvest your earnings letting you maximise the benefits of compound returns

    - It’s easy to set up a regular investment plan

    - You get access to hard-to get asset classes and different investment styles

    - You can choose between funds that return income, growth or both

    - You can start investing with as little as $2,000, though each fund has its own minimum

  • How does a Unit Price work?

    Most managed funds are unit trusts. When you invest, your money buys units in the trust. How many units you get depends on how much you invest and the unit price at the time.

    Say you had $10,000 to invest and the application (entry) unit price was $2.00; you would get 5,000 units in the fund. (Assuming no establishment fees are charged) (And remembering that you would not have known the $2.00 unit price ahead of time due to the forward pricing rule).

    Although your unit balance in a fund will stay constant (unless there is a transaction on your account), the unit price will change according to changes in the market value of the investment portfolio, or the total number of units issued for the fund.

    We determine the market value of each fund based on the information we have most recently available. The most recent unit prices are available over the phone or from the Funds page on this website.

    You can check the value of your investment in a unit trust at any time by multiplying the number of units you hold by the daily (exit) unit price.

  • Will I know what price I’ll get before I buy or sell a Fund?

    No.  Managed Funds are valued on a “forward pricing” methodology.  Let’s say you see that the last price for a fund was $1.00 per unit and you decide to buy.  You apply for $1 on the application form.  On that day the market performed pretty well rising 1%.  That evening we price the fund and the new price per unit becomes $1.01.  We would then process your application and you would get 0.99 units for your $1 ($1.01/$1).  Basically, every price you see for a managed fund is a historical price.


  • How are Entry (application) and Exit (withdrawal) prices calculated?

    The Application Price (also described as the issue price) is the price at which units are issued when an investor invests in a fund. This is generally calculated by using the Net Asset Value (mid) unit price plus the transaction cost factor.

    However units issued under a distribution reinvestment plan are issued at the Net Asset Value unit price applicable at the date of reinvestment in accordance with each Funds’ constitution.

    The Withdrawal Price (also described as the redemption price) is the price at which units are redeemed when an investor withdraws from a Fund. This is generally calculated by using the Net Asset Value unit price minus the transaction cost factor.

  • How do I make an additional investment?

    Easy! Simply transfer funds to the application bank account (this is different for each fund).  You can find the bank account details on the first page of the application form attached to the PDS for your fund.  The PDS can be downloaded from the Fund information page.

    Don’t forget to include your investor number in the reference field of your EFT.  Also, please send us a quick email advising us that you have made this transfer (again please quote your Investor number) with a copy of the transfer receipt.

    Alternatively you can use BPay or send us a cheque with a completed additional application form.  Further information can be found in the PDS.

  • How do I redeem from a Fund?

    For security purposes this can only be arranged via the submission of a signed redemption instruction. We have a redemption form you can use for this purpose. Click here to obtain the form. To make this easier we will accept a scanned and emailed copy of this form when the redemption is payable to the bank account we have on file.

    Note that if you require redemption proceeds to be paid to a bank account we do not have on file, then you will need to post or hand deliver your signed instruction to Fundhost.  We will only pay redemption proceeds to an account in the name of the investment.  For more information refer to the PDS.

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