Managed fund
A pooled investment vehicle where many investors' money is combined and managed collectively against a stated investment objective by a professional fund manager.
A managed fund pools money from many investors and invests it collectively against a stated investment objective — for example, "long-term capital growth from a diversified portfolio of NZ and global equities". Each investor owns a proportional share of the pool (units), and the fund's value rises and falls with the underlying portfolio.
In New Zealand, retail managed funds are regulated under the Financial Markets Conduct Act 2013 and must be part of a registered Managed Investment Scheme (MIS) with a licensed Supervisor. Most are PIE-structured for tax efficiency.
Managed funds differ from KiwiSaver scheme funds principally on access — KiwiSaver scheme funds have lock-in restrictions (KiwiSaver scheme money is generally locked in until age 65, with limited early-withdrawal grounds), while managed funds can be entered and exited at the investor's discretion under the fund's liquidity terms.
Related terms
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PIE fund · PIE
Portfolio Investment Entity (PIE)
A tax-efficient New Zealand fund structure where investor tax is capped at the investor's Prescribed Investor Rate (PIR), with a maximum of 28%.
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MIS · Scheme
Managed Investment Scheme (MIS)
The legal vehicle under the Financial Markets Conduct Act 2013 that holds investor money in a pooled fund. Every NZ retail managed fund is part of a registered MIS.
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PDS
Product Disclosure Statement (PDS)
The headline legal document a NZ managed fund or KiwiSaver scheme provides to retail investors, summarising the fund, fees, risks, and how to invest.
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etf-vs-managed-fund
ETF vs managed fund
An exchange-traded fund (ETF) is a managed fund whose units trade on a stock exchange like a share. A traditional unit-priced managed fund is bought and sold directly with the manager or platform at the fund's daily NAV.