What are Listed Managed Investments?

Managed Investments hold and manage a portfolio of assets on behalf of their investors. Buy and sell decisions are made by an investment professional.

Investors own a proportion of the investment portfolio commensurate with the size of their investment, and are entitled to any profits and distributions (dividends), but also subject to losses should the value of the portfolio decline.

Managed Investments are an increasingly popular tool for investors to accumulate and preserve wealth. They can also be effective income producing investments.

Their popularity can be attributed to their simplicity. Through one investment you can gain access to a professionally managed portfolio of assets.

The variety of asset classes is wide, and management styles range from very conservative to aggressive. There is a Managed Investment tailored to virtually every set of investment goals, timeframes and risk tolerance. 

With more than 180 Managed Investments listed on ASX, totalling approximately $207 billion in assets, these products offer investors access to portfolios of Australian shares, international shares, real estate, fixed interest, infrastructure, private equity, and alternative investments.

Listed Managed Investments are bought and sold on the ASX in the same manner as shares.

Different structures

There are several ways a Listed Managed Investment may be structured: 

  • As a company, where investors are issued shares, and receive dividends and franking credits. The manager may be part of or separate from the security. Dividends are generally fully franked and set at the discretion of the manager with respect to profitability. Dividends and imputation
  • As a trust, where investors own units. Distributions, and franking credits are passed through to investors in the year they are received and based on the underlining assets. The fund manager is separate from the security. 
  • As a stapled security where investors own two or more securities which are generally related and bound together through one vehicle. The fund manager is generally part of the stapled security. View stapled security structure  

Listed Managed Investments fall into one of six broad categories: