Types of managed funds
Single-asset class funds
These are funds that invest in a single asset class, for example Australian shares, or particular segment of an asset class, such as Australian shares in small companies.
Multi-asset class funds
Often referred to as diversified funds, these funds combine a number of asset classes in various combinations to suit more defensive or aggressive risk profiles. Their in-built diversification means they can be used as a complete portfolio solution for many people.
These are funds that invest through a number of other fund managers, chosen for their particular expertise in particular asset classes. The diversification of investment managers may help reduce the overall volatility of the portfolio.
Style based funds
Different fund managers use particular investment styles and processes. Growth managers focus on companies they expect to grow strongly. Value managers aim to invest in companies that represent good value based on their current and prospective returns. Different managers use combinations and variations of these approaches. Index managers simply try to track the index of the markets in which they invest.
These are products that provide an extensive choice of individual funds within the one structure and integrated reporting. They usually include funds managed by the responsible fund manager as well as a selection of funds managed by other fund managers.
Wrap accounts, individually managed accounts
These are portfolio administration services that provide consolidated administration and reporting for a broad range of investments that may include managed funds, direct shares, fixed income investments and property.
These are managed fund products that are structured to provide particular features, for example capital protection, or linked loans for gearing the investment.