Investment funds that are managed portfolios; they are usually shares, but can also include cash, bonds and gilts.
Unit trusts allow beneficiaries to have a clearly defined share trust - this share is in the form of units. The income that a unit trust earns is distributed according to the number, or class, of units held by the beneficiaries.
A form of Collective Investment Scheme. Investors buy units in a unit trust which then uses the money raised to invest in a range of specified investment areas. If investors wish to redeem their units, they do so by selling them back to the manager of the unit trust. As a result, the unit trust will have to sell some investments to generate the cash required to repurchase the units. This gives rise to the description of unit trusts as open-ended - the size of the unit trust may vary and is determined by the level of new units purchased relative to units redeemed. See also Investment Trusts, Undertakings for Collective Investments in Transferable Securities and Open-Ended Investment Companies.
(GB) or mutual funds (US) - organizations that place investors' money in a variety of stocks and shares.
These are open-ended funds where private investors pool their money to be invested in a portfolio of securities. Unit trusts issue units to investors. Units Unit trusts issue units in response to demand. Being open-ended, unit price is closely aligned to the net asset value (NAV) of the fund. Unlimited liability When a promoter is fully liable for the debts of the business, it is called unlimited liability.
Unit trsuts pool your money with that of other investors in the same way as investment trusts. They also buy shares, but they are not company governed by trust rather than company law, and instead o share issue units. An investor buys a unit at the buying price (the offer price) and sells them at the selling price (the bid price).
Funds made up of many investors' contributions, these are divided into equal units and invested on Stock Exchanges globally.
Apart from policies, assurance companies also sell unit trusts. A unit trust is not a policy; it is basically a pool of money to which many people contribute, that is invested by experts called portfolio managers, mainly in shares on the Johannesburg Stock Exchange (JSE), as well as in securities and cash. It is used mainly for investment.
Open ended investment funds where your money is invested with thousands of others so that you can invest in a greater variety of stock. Each investor owns a unit (or a number of them) the value of which is depends on the value of the assets owned by the trust.
are the most common form of collective investment for the private investor. Usually 'open ended' meaning that when an investor wishes to buy, units are created. Similarly, units are cancelled when an investor wishes to sell - however buyers and sellers can be netted off against one another and the Unit Trust manager charges each. Priced daily and not quoted on an exchange.
a mutual fund structure which allows funds to hold assets and pass investment returns through to the individual owners of the trust units.
Trusts where the beneficial interests are represented by units. Unit trusts registered with ASIC are called Managed Investment Schemes.
Unit trusts are collective investment schemes that allow investors to pool their money together in a fund. This is managed by a professional fund manager, who will buy dozens or hundreds of different holdings. This spreads the investment and results in lower dealing costs. The fund is unitised, which means units are created every time an investor puts money in the fund and liquidated when they withdraw money. If units are worth £1 each it will cost £1000 to buy 1000 units and these will rise or fall in value as the value of the assets held by the fund rise or fall. (See pound-cost averaging).
A unit trust is a portfolio of investments that spread market risks. It allows an investor to reduce their risk exposure by pooling their investment. When investing in a unit trust, cash buys units. Each unit trust has thousands of people holding units in the fund. A unit trust is an open-ended investment, as the number of units in each trust will vary depending on supply. As more investors join, more units are created. Unit trusts cover a variety of funds.
Are a form of collective investment vehicles. The beneficial rights to the trust assets are divided into a number of units and these units are offered for sale to the public. The unit trust vehicle can either be a trust or corporate entity.
A fund made up of a group of individual securities specifically linked to either a geographical area or business sector. The price of the fund is the value of all the securities added together divided by the number of units issued. The fund is open and has an unlimited number of unit holders.
A collection of securities, usually bonds, packaged by brokers and sold to investors.
