What is a managed fund or investment trust?
When you invest into a managed fund your money is ‘pooled’ together with other investors’ money to buy assets. Managed funds are also called managed investment schemes, unit trusts, managed trusts, pooled funds, mutual funds, collective investments and investment funds. A managed fund is an arrangement between a group of investors and a fund manager (the responsible entity), governed by a constitution. In exchange for the money you invest, the trust issues units in the managed fund which have certain rights attached (such as the right to a share of any income and on certain occasions, the right to vote). The number of units you receive depends on how much you invest in the fund and the unit price on the day. Australian Ethical invests the pooled money into various assets according to the Australian Ethical Charter.
