FINS2643 Lecture Notes - Lecture 7: Colonial First State, Investment Fund, Direct Debit
M07$–$Managed$Funds$Selection$and$Strategies$
$
!"#$%&%'()*+,-."/(
0(1&/,*//(+2"($"'*3#+-$4(5$#."6-$7(#%8(-9"$#+&-%#3(/+$*,+*$"(-5(.#%#'"8(&%:"/+."%+/((
0(1&/+&%'*&/2(;"+6""%(5*%8(/+$*,+*$"<(/+43"<(#//"+(,3#//(#%8(/2#$"(,3#//(
0(=>93#&%(.#/+"$(+$*/+/(#%8(6$#9(#,,-*%+/((
0(=>93#&%(+2"(,-%,"9+(-5(.#%8#+"(#%8(&.93&,#+&-%/(5-$(+2"(/+$#+"'&"/(+2#+(#(5*%8(.#4(*/"(
0(=:#3*#+"(#%8(&%+"$9$"+(5*%8(9"$5-$.#%,"(*/&%'(;"%,2.#$7(#%8(#3+"$%#+&:"($&/7(
#8?*/+."%+/((
0(1&/,*//(+2"("55",+(-5(5*%8(5""(#%8(+*$%-:"$(-%(#5+"$0+#>(5*%8(9"$5-$.#%,"(
0(=>93#&%(2-6(+2"(3&@*&8&+4(-5(+2(*%8"$34&%'(#//"+(#%8(&%:"/+."%+(53-6(,#%(&.9#,+(-%(+2"(
:&#;&3&+4(-5(#(5*%8((
0(1&/,*//(-+2"$(@*#3&+#+&:"(:#$&#;3"/(&%(+2"(5*%8(/"3",+&-%(9$-,"//((
0(1"+"$.&%"(#99$-9$&#+"(9-$+5-3&-(,-%/+$*,+&-%(/+$#+"'4(#%8(&%:"/+."%+(/+$*,+*$"(*/&%'(
.#%#'"8(5*%8/((
(
1&$",+(#%8(A#%#'"8(B%:"/+."%+/(
0(1&$",+(B%:"/+."%+/(
0(B%8&:&8*#334(.#%#'"8(&%:"/+."%+/(
( 0(A#%#'"8(8&/,$"+&-%#$4(#,,-*%+(
0(C--3"8(.#%#'"8(&%:"/+."%+/((
( 0(A#%#'"8(&%:"/+."%+(/,2"."(DABEF((
( 0(G"'*3#+"8(/*9"$(5*%8/(
(
H*%8(A#%#'"$/(
0(IAC<(J-3-%(H&$/+(E+#+"<(C"$9"+*#3("+,K((
0(L2"&$(-;?",+&:"(&/(+-(.#%#'"(.-%"4(6"33(/-(+2#+(+2"4(,#%(#++$#,+(#(;&'(9--3(-5(.-%"4(#%8(
"#$%(.#%#'"."%+(5""/(-%(+2&/(9--3K((
(
C$-/(#%8(J-%/(-5(A#%#'"8(5*%8/(
C$-(–(=#/4(#%8(+&."("55",+&:"(
C$-(–(=,-%-.4(-5(/,#3"(–(4-*(2#:"(+2"(9$-5"//&-%#3/(62-(2#:"(+2"(8#+#(#%8($"/-*$,"/(+-(8-(
+2"&$(?-;(6"33(
C$-(–(1&:"$/&5&,#+&-%(;"4-%8(62#+(#%(&%8&:&8*#3(,-*38(#,2&":"(
C$-(–(M"$4(8&:&/&;3"(6&+2($"'*3#$(8&$",+(8";&+(-5(NOPP(6&+2(*%3&/+"8(5*%8/(
C$-(–(J#%(9$-:&8"(#($"'*3#$(/-*$,"(-5(&%,-."((
J-%(–(J2#$'"(5""/(–("%+$4<(">&+(#%8(-%'-&%'(5""/<(8&55"$(#,$-//(#//"+(,3#//"/(#%8(5*%8(/+43"((
J-%(–(L2"4(#$"(+49&,#334(%-+(.#%#'"8(-%(#%(#5+"$0+#>($"+*$%(5-,*/((
J-%(–(I($*%(,-*38(-,,*$(5-$(*%3&/+"8(5*%8/((
(
M07-1$Regulations$of$Managed$Funds(
C--3"8(A#%#'"8(B%:"/+."%+/(DH*%8/F((
0(I$"(&%:"/+."%+(:"2&,3"/(D*/*#334(*%&+(+$*/+/F(
( 0(L2"(.-%"4(5$-.(#(3#$'"(%*.;"$(-5(/.#33"$(&%:"/+-$/(&/(9--3"8(+-'"+2"$((
( 0(A#%#'"8(;4(#(9$-5"//&-%#3(&%:"/+."%+(5&$.((
0(L6-($"'*3#+-$4(,#+"'-$&"/(
( 0(A#%#'"8(B%:"/+."%+(E,2"."/(DABEF((
( ( 0()+2"$(%#."/(&%,3*8"/(.#%#'"8(5*%8/<(9--3"8(5*%8/<(&%:"/+."%+(+$*/+/(-$(
*%&+(+$*/+/(
( ( 0(L2"/"(+$*/+/(#$"(%-+(+#>"8(8&$",+34<(&%:"/+-$(9#4/(9"$/-%#3(&%,-."(+#>(-%(
;"%"5&+/(8&/+$&;*+"8((
( ( 0(IEBJ(&/($"/9-%/&;3"(5-$(+2".((
0(G"'*3#+"8(E*9"$(H*%8/(D#;-*+(QPR(-5(+2"(&%8*/+$4F((
( 0(L2"/"(+$*/+/(9#4(+#>(-%(+2"&$("#$%&%'/(#+(OSR(#%8(3-%'0+"$.(,#9&+#3('#&%/(#+(OPR((
( 0(T&+28$#6(.-%"4($"@*&$"/(/#+&/54&%'(#(,-%8&+&-%(-5($"3"#/"((
( 0(ICGI(&/($"/9-%/&;3"(5-$(+2".((
0(A-/+(5*%8/(/+&9*3#+"(.&%&.*.(&%&+(&%:"/+."%+/<(#88&+&-%#3(8"9-/&+/(#%8(;#3#%,"/(
( 0(I:"$#'"(.&%&.*.(-5(#($"+#&3(5*8(6-*38(;"(#$-*%8(NOPPP(
( 0(I(.&%&.*.(#88&+&-%#3(&%:"/+."%+(NOPP(
( 0(I(.&%&.*.(;#3#%,"(6-*38(;"(#$-*%8(NSPP(
(
A#%#'"8(B%:"/+."%+(G"'*3#+&-%/(
0(IEBJ($"'*3#+"/(ABE(I%8(!&/+"8(B%:"/+."%+(J-.9#%&"/(
0(ICGI($"'*3#+"(/*9"$#%%*#+&-%(5*%8/(
0(I33(9"$/-%/(9$-:&8&%'(&%:"/+."%+(#8:&,"(.*/+(;"(3&,"%/"8(;4(+2"(IEBJ(
0(H*%8/(.*/+(9$-:&8"(#%(#99$-:"8(9$-/9",+*/(+-(9-+"%+(&%:"/+-$/(
0(J-%/*."$/’(#,,"//(&/(#:#&3#;3"(+-(+2"(&%8*/+$4(-.;*8/.#%(+2-$-*'2(+2"(H&%#%,(B%8*/+$4(
J-.93#&%+/(E"$:&,"(DHBJEF(
(
E+$*,+*$"(#%8(A#%#'"."%+(-5(C--3"8(H*%8/(
0(L2"(5*%8(&+/"35(&/(-$'#%&/"8(#/(#(/"9#$#+"(+$*/+(#%8(&/(-6%"8(;4(+2"(*%&+(2-38"$/<(%-+(;4(+2"(
5&$.(+2#+($*%/(&+(
0(=:"$4(.#%#'"8(5*%8(&/($*%(;4(#(“/&%'3"($"/9-%/&;3"("%+&+4”(
( 0(I8.&%&/+"$/(+2"(5*%8(–(+#>($"9-$+&%'(#%8(/"33U&//*"(#%8(;*4U$"8"".(5*%8(*%&+/(
( 0(B%:"/+/(.-%"4(–(8&$",+34(-$(;4(/*;,-%+$#,+&%'(
( 0(C$-+",+(&%:"/+-$(&%+"$"/+(–(+2"(+$*/+""($-3"(/#5"'*#8/(+2"(/",*$&+&"/(#%8(-+2"$(
#//"+/(
(
M07-2$Fund$Types(
1&."%/&-%/(+-(8&/+&%'*&/2(5*%8(+49"(
0(E+$*,+*$"((
( 0(!"'#3<(G"'*3#+&-%<(B%:"/+."%+(53-6(#%8(5*%8(-9"$#+&-%(
0(E+43"(
( 0(V-6(#(5*%8(&%:"/+/(
0(I//"+(,3#//(
( 0(T2#+(,#%(#(5*%8(&%:"/+(&%(
0(E2#$"(,3#//(
(
I3+"$%#+&:"(E+$*,+*$"/(
0(W%3&/+"8(5*%8/(
( 0(G"+#&3U62-3"/#3"(.#%#'"8(5*%8/(
( 0(V"8'"(5*%8/(
( 0(M"%+*$"(J#9&+#3(#%8(C$&:#+"(=@*&+4(H*%8/(
( 0()9"%0"%8(-$(J3-/"8(5*%8/(D62"+2"$(+2"4(#,,"9+(.-%"4(-$(%-+F((
Document Summary
Discuss the regulatory framework and operational structure of managed investments. Distinguish between fund structure, style, asset class and share class. Explain the concept of mandate and implications for the strategies that a fund may use. Evaluate and interpret fund performance using benchmark and alternative risk adjustments. Discuss the effect of fund fee and turnover on after-tax fund performance. Explain how the liquidity of th underlying asset and investment flow can impact on the viability of a fund. Discuss other qualitative variables in the fund selection process. Determine appropriate portfolio construction strategy and investment structure using managed funds. Their objective is to manage money well so that they can attract a big pool of money and earn management fees on this pool. Pro economy of scale you have the professionals who have the data and resources to do their job well. Pro diversification beyond what an individual could achieve. Pro very divisible with regular direct debit of with unlisted funds.
