A managed investment is an investment in a fund that is professionally managed by an asset manager on behalf of investors. The assets of a managed investment can be anything from suburban shopping centres to international share portfolios. The fund manager is responsible for the selection, buying and selling of assets in the fund, as well as paying any fees and tax. Managed funds can be offered by a range of different organisations. They may be structured as a trust, company or managed investment scheme (MCS). The type of fund determines the terms and conditions applicable to investing in that particular fund.
There are many benefits to managed investing. These can include the ability to diversify a portfolio, achieving higher returns than DIY investing, and the peace of mind that comes from knowing your investments are in professional hands.
However, when choosing a managed account it’s important to consider all the fees associated. Fees can significantly impact your investments and reduce the return on your investments. Ideally, you should choose a wealth manager that will be transparent about the fees they charge and provide clear explanations of how these fees are calculated.
The first step to moving to a managed account is understanding your financial goals and risk tolerance. A good wealth manager will take the time to review this with you, and will work with you to develop a plan to achieve your goals. It’s also important to understand the types of accounts available and the typical fees associated with each.
There are three main types of managed investments: managed investment schemes, authorised capital limited partnerships (ACCL) and separately managed accounts (SMA). Each structure has its own rules, regulations and costs. Magellan offers a number of unlisted managed funds that are primarily managed by our asset managers. These include property funds, which invest in assets such as suburban shopping centres and commercial office blocks; and share funds, which are based on model portfolios designed by our fund managers.
Unlisted managed funds are not registered with the Australian Securities and Investments Commission (ASIC). To invest in an unlisted managed fund, you must complete and return a Product Disclosure Statement to us, together with your application and any other documents required by the ASIC.
There is no one-size-fits-all answer to the question of whether or not managed investing is worth it. For some, the extra cost and hefty minimum contribution requirements are worthwhile because of the peace of mind that comes with knowing that their investments are in professional hands. For others, the added costs and minimum contribution requirement are offset by the higher returns they can potentially generate. This is especially the case for high net-worth individuals who can benefit from access to exclusive opportunities, or even private investments that are not widely available to retail investors. Managed investing