Page 4 - Profiles's Unit Trusts & Collective Investments - September 2024
P. 4
Contents
CONTENTS
Contents
Understanding Unit Trusts
How to use this book ...................................... 17
A note on Terminology ................................................................ 18
Qualifications for Financial Advisors ...................................................... 18
Chapter 1
History of Collective Investment Schemes ...................... 24
The Establishment of Unit Trusts......................................................... 24
The Crash of 1969 ................................................................... 25
Lessons from ’69 .................................................................... 26
An Explosion of Funds ................................................................ 26
The Crash of ’87..................................................................... 28
Advent of Managed Prudential Funds ..................................................... 28
The Effect of Globalisation ............................................................. 29
The Crash of 2008 and the Great Recession ................................................ 30
The Impact of Technology.............................................................. 31
Direct Access....................................................................... 32
Robo-Advisors ...................................................................... 32
Chapter 2
Basic Concepts ........................................... 34
What is a Collective Investment Scheme? .................................................. 34
Simple and Straightforward............................................................. 34
Structure of a Collective Investment Scheme................................................ 36
Types of Collective Investment Schemes................................................... 37
How Does a Unit Trust Work?........................................................... 41
Important Features of Collective Investments................................................ 45
Pros and Cons of Collective Investment Schemes ............................................ 49
Chapter 3
Costs and Pricing.......................................... 52
The Importance of Costs............................................................... 52
Transactions ....................................................................... 53
Charges and Costs ................................................................... 54
Unit Classes ........................................................................ 65
Income Declaration................................................................... 66
Performance and Reporting ............................................................ 68
Performance Statistics ................................................................ 69
2 Profile’s Unit Trusts & Collective Investments
