Frequently Asked Questions Managed Funds

1. What are active managed funds?

An active managed fund is typically a portfolio of assets that are actively managed on the investor’s behalf by a fund manager. Actively managed funds are those where the fund manager aims to outperform a benchmark by buying, selling and holding securities (e.g. stocks) and typically have a differentiated approach vs a passive managed fund.

Objectives will vary but will usually focus on making specific investments to outperform a specified benchmark.

2. What is the difference between an active managed fund, a passive managed fund, a Listed Investment Company (LICs) and an ETF (exchange traded fund)?

There are several differences between active managed funds, passive funds and ETFs.

• The goal of active managed funds is to try to outperform their benchmark using the combined expertise of an investment team. Managed funds provide access to a diversified portfolio made up of different securities or asset classes via a single fund.
• Passive managed funds aim to mimic the performance of a particular benchmark or market as closely as possible.
• ETFs, similarly to passive managed funds, aim to track a particular benchmark as closely as possible. An ETF trades like a common stock, on a secondary market such as the Australian Securities Exchange (ASX).
• Listed investment companies (LICs) are a type of investment incorporated as companies and listed on a stock exchange such as the ASX. Like managed funds, they have a manager who is responsible for selecting and managing the company's investments. LICs make up the majority of listed managed funds on ASX.

Talk to your investment adviser to determine which one is right for you.

3. How are managed funds priced?

When investing in a fund, your money buys a set number of units that vary in price depending on the value of assets in the fund at a particular point in time. The ‘per unit’ price is determined daily by the total value of the fund’s assets adjusted for any liabilities. This net value figure is divided by the total number of units held by all investors of the fund on that same day to determine price per unit. The price of the individual unit is then multiplied by the total number of units you hold to determine the total value of your investment. The unit price reflects the net value of the fund’s investment.

4. What are the underlying investments?

Underlying investments refers to the basket of securities that make up the fund. Details of the fund composition and holdings can be found on this website or in the fund's Product Disclosure Statement.

5. Why are active managed funds more expensive than ETF’s or index funds?

Management costs have become increasingly important to investors because they can have a significant impact on your portfolio's return and potential for wealth accumulation. As actively managed funds require a deeper level of research, analysis and ongoing management by investment professionals, the funds incur a management fee that is typically more expensive compared to ETF’s or index funds which require less ongoing/intensive management and research.

1. How do I invest?

You should consult a licensed financial adviser to obtain financial advice which is tailored to your personal circumstances before making any investment decisions and read the PDS and Information Booklet before making a decision.

Once prepared to make an investment, our funds are available;

• Directly: Direct investors should refer to the How to Invest page which provides a step-by-step guide to making your investment.
  Please note that for all SSGA Unlisted Funds our distributions condition state:
  “Only suitable for distribution to retail investors who have received personal advice. Direct investment is available to wholesale investors only.”
  
• Indirectly (via a Platform): Indirect investors should complete the application forms provided by the Platform operator.
  

2. What is an APIR code?

An APIR code is a unique identifier issued by the Asia Pacific Investment Register (APIR) to participants and products within the Financial Services Industry. Each of SSGA’s Funds has an individual APIR code (available on the fund pages) which is used as another way in which to uniquely identify Funds.

3. Is there a minimum investment?

The initial minimum investment when investing directly with SSGA is $25,000 and for any additional investments thereafter the minimum amount is $10,000. Investments made though a platform can vary with regard to their minimum investment.

4. Is there a minimum balance?

There is no minimum withdrawal amount for most of our Funds however, your remaining investment balance must be at least $15,000, unless you withdraw all your investment.

5. Is there an Automatic Savings Plan (ASP)?

No, an Automatic Savings Plan is not available.

6. What fees and expenses are associated with SSGA Funds?

There are a number of costs associated with investing in a fund, including management costs charged by the fund provider and service fees charged by your investment adviser. Investors may also consider indirect costs, including those stemming from the buy/sell spread. SSGA does not charge performance fees — an additional cost charged on top of managements costs incurred as a result of any previously agreed outperformance.

Details of the management costs for funds can be found in the relevant Fund Product Disclosure Statement.

7. How do I withdraw my investment from SSGA?

To make a partial or full withdrawal from your existing investment, complete the Withdrawal Request Form, which can be found using the Fund Finder menu and downloaded from the Documents section of the fund page. Once complete and signed, the form can be scanned and emailed to SSGA.transactions@unitregistry.com.au

If you have any questions on how to complete this form please contact the Client Services Team on 1300 043 521 or ssga@unitregistry.com.au

8. What are risks involved with investing?

As with any investment, understanding the risks associated, is imperative. There are a number of factors that can influence and significantly vary the potential returns of an investment. Some of these factors may also be outside of the control of SSGA such as economic conditions and interest rates. The PDS outlines some of the potential risks specific to each fund. Please refer to the PDS, and your financial adviser before making a decision on your investment.

1. Are returns guaranteed?

No. As with all investments, there are certain risks associated with investing in SSGA Funds and the value of your investment can go up or down with the value of the assets of the fund.

2. How should I expect to receive any income / distributions from my investment?

Distribution payment dates vary for our State Street Global Advisor Funds, further information on payment dates can be found in the individual PDS. Distributions can either be reinvested through a DRP (Dividend Reinvestment Plan) or paid to your nominated bank account, these options are available when you first invest and are on the application form.

3. What is the buy/sell spread?

The buy /sell spread represents the estimated transaction cost, such as brokerage, incurred by the Fund when buying or selling its underlying assets as a result of investments or withdrawals in the Fund. The spread is included in the calculation of the purchase and withdrawal prices for units. When investors purchase units, the buy spread is added to the net asset value per unit. When they sell units, the sell spread is deducted from the net asset value per unit. The spread is retained by the fund, and neither the Responsible Entity nor SSGA receives any financial benefit. It is charged to ensure that investors who are not buying or selling units in the Fund at that particular time are not disadvantaged by other investors who are doing so.

1. What are the distribution arrangements?

In general terms, investors will be entitled to a pro rata share of the distributable income (if any) for that period, based on the number of units held in the fund. Distributable income includes dividends or profits received from the fund's investments. More information on distributions, including the frequency of payment, can be found in the Product Disclosure Statement for the relevant Fund.

2. Can distributions from SSGA Funds be reinvested?

Yes, distributions can either be reinvested through a DRP (Distribution Reinvestment Plan) or paid to your nominated bank account. To set up the DRP, either select this option on the initial application form or complete the change of details form available for download here.

3. How do I Change My Distribution Plan?

To make a change to your distribution plan (DRP) or linked bank payment details, complete the change of details form available for download here.

4. What tax implications are involved with investing?

Registered managed investment schemes do not pay tax on behalf of resident unitholders. Rather, unitholders are assessed for tax on any income and capital gain generated by the managed investment scheme.

Warning: Investing in a registered managed investment scheme is likely to have tax consequences, and we strongly advise that you seek professional tax advice.

1. How do I update my contact details (i.e., change of address)?

A change of details form is available for download here. Please complete this form to update your records with us, including your contact details, distribution election, tax status and bank account details. Once complete and signed, the form can be scanned and emailed to SSGA.transactions@unitregistry.com.au

2. Where can I get the latest information on the SSGA Fund I invested in?

For more information please speak with your financial adviser or visit ssga.com.

Existing clients with queries relating to their investment’s can login via the MyFunds portal.

You may also contact us at 1300 043 521 or ssga@unitregistry.com.au to speak to our Sales and Support team.

3. How do I register for Online Access?

Please contact the Client Services Team on 1300 043 521 or ssga@unitregistry.com.au