unit Trust investment
thru
Managed Account of Funds
cash or SRS
Simply Choose a portfolio that suits you
Many investors had tried traditional Unit Trust investment, either through banks or DIY Fund platforms.
There are more than 100,000 funds available globally.
Most retail investors choose their funds simply by headlines.
A DIY investor is a Fund Manager, an Analyst, a Trader and an Administrator rolled into one.
Some investors fall victim to their own investing psychological or behavioural traps.
Others got it wrong sometime and decided to stay out thereafter.
Get to know this “private-banking Lite” solutions.
An option to tap into the expertise of the professional wealth service company.
What is Managed Account of Funds?
Managed Accounts is the investment solution of choice among private banking clients. It is increasingly made available to the mass market recently.
A Managed Account of funds is a unit trust portfolio management service designed to make investing easy for retail investors.
Once the investors have selected the investment strategy that suits them, the day-to-day portfolio rebalancing and implementation decisions is then delegated to an Asset Manager.
What is in the Portfolio?
Each Managed Account of funds portfolio is a selection of unit trusts, chosen by professional portfolio managers to achieve the investment objectives and desired risk-adjusted return characteristic.
The portfolio is often diversified across multiple fund houses, multiple asset classes, and many different securities.
There are usually portfolios of various strategies the investors can choose from, depending on their respective investing needs.
How does it work?
It often begins with a process to determine the investor’s financial goals and risk preferences.
A suitable Managed Account strategy that best corresponds to the requirements may then be recommended to the investors.
Once the investors have accepted that recommendation, the implementation, ongoing management and monitoring of the investment will be taken over by the Asset Manager. The investors are usually updated through trade alerts, periodic reports, etc.
Benefits Of Managed Account Of Funds
Simplicity
The only decision the investors will have to make is the choice of the portfolio strategy and how much they wish to invest.
Professional Management
Most Managed Account of Funds offer the investors access to an Asset Manager, a service usually reserved for institutional investors.
Timeliness
Professional portfolio managers will monitor the market for the investors. Portfolios are usually managed and rebalanced in a timely manner diligently.
Transparency
Investors usually get real-time access to their portfolios through an online portal and receive trade alerts & periodic updates.
Access to clean fee
Some Managed Account of funds enjoy clean fee or institutional share classes, which is lower than retail share classes that carry a higher management fee.
Examples of Investment Strategy Choices
CONSERVATIVE
Investment Objective: Income generation and capital preservation.
The
manager will seek to minimize drawdowns by diversifying across a portfolio of low volatility fixed income and equity
funds.
Investors of this portfolio should view their investment with a medium to long term investment
horizon.
Asset Allocation Range:
Fixed Income 70 - 100%
Equities 0% - 30%
MODERATE
Investment Objective:
A balance of income generation and capital appreciation. .
The manager will seek risk adjusted returns by investing in a portfolio of fixed income and equity funds..
Investors of this portfolio should view their
investment with a medium to long term investment horizon.
Asset Allocation Range:
Fixed Income 20 - 60%
Equities 40 - 80%
AGGRESSIVE
Investment Objective:
Risk adjusted capital appreciation.
The manager will seek to balance the risk return tradeoff by investing in a portfolio of equity and fixed income funds.
Investors of this portfolio should view their investment with a medium to long term investment horizon.
Asset Allocation Range:
Fixed Income 0 - 30%
Equities 70 - 100%
INCOME
Investment Objective:
To seek sustainable income distribution plus moderate long term capital appreciation.
This portfolio invests in a combination of bonds and income generating equity funds
that offer potential for capital appreciation.
Investors of this portfolio should view their
investment with a medium to long term investment horizon
Asset Allocation Range:
Fixed Income 40% - 80%
Equities 20% - 60%
RELATED: SRS Investment Options
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