Page 9 - Profile's Unit Trusts and Collective Investments 2021 issue 2
P. 9
Contents
PAGE
CONTENTS
Contents
Understanding Unit Trusts
Foreword.....................................21
How to use this book ......................................................... 22
A note on Terminology ................................................................ 23
Qualifications for Financial Advisors ...................................................... 23
Chapter 1
History of Collective Investment Schemes........... 29
The Establishment of Unit Trusts......................................................... 29
The Crash of 1969 ................................................................... 30
Lessons from ’69 .................................................................... 31
An Explosion of Funds ................................................................ 31
The Crash of ’87..................................................................... 33
Advent of Managed Prudential Funds ..................................................... 33
The Effect of Globalisation ............................................................. 34
The Crash of 2008 and the Great Recession ................................................ 35
The Impact of Technology.............................................................. 36
Direct Access....................................................................... 37
Robo-Advisors ...................................................................... 37
Chapter 2
Basic Concepts ................................ 39
What is a Collective Investment Scheme? .................................................. 39
Simple and Straightforward............................................................. 39
Structure of a Collective Investment Scheme................................................ 41
Types of Collective Investment Schemes................................................... 42
How Does a Unit Trust Work?........................................................... 46
Important Features of Collective Investments................................................ 50
Pros and Cons of Collective Investment Schemes ............................................ 54
Chapter 3
Costs and Pricing .............................. 56
The Importance of Costs............................................................... 56
Transactions ....................................................................... 57
Charges and Costs ................................................................... 58
Unit Classes ........................................................................ 69
Income Declaration................................................................... 70
Performance and Reporting ............................................................ 72
Performance Statistics ................................................................ 73
Profile’s Unit Trusts & Collective Investments 7
