1. GENC3003Personal Financial Planning Andrew Hingstonandrew.hingston@unsw.edu.au Unit 12: An easier way to buy shares

2. 2 Making life easier Managed funds make investing in shares easier. They pool together $100million+ of investor’s money The money is invested into a quality portfolio of shares by professional fund managers You own “units” in the trust You receive cash “distributions” from the fund from dividends and gains. You can sell your units at any time … more on this next week!

3. 3 A special share Exchange Traded Funds (ETFs) are a fairly new product on the stock exchange StreetTRACKS ASX200 Fund (STW) is a fund that is listed on the stock exchange Invests in the top 200 Australian companies listed on the stock exchange weighted according to their size. Funds returns  ASX200 index returns In practise … slightly less due to costs of running the fund Management Expense Ratio of only 0.286% Well diversified share portfolio with only one stock!

4. iShares Barclays also have iShare ETFs that track world indices. They give you diversification across 50+ companies in those markets. Value is affected by Australian Dollar which adds to risk IOO – Global IVV – United States IEU – Europe IEM – Emerging Markets IZZ – China IHK – Hong Kong 4