Understanding Managed Funds

Understanding Managed Funds

At Skyring, we believe successful investing starts with informed decisions. Managed funds are one of the most common ways investors can invest their money and one of the most widely used investment structures in Australia.

We offer managed investment funds designed for investors who prioritise regular income, capital preservation, and a transparent investment approach. Understanding how managed funds work can help you make more informed investment decisions, whether you're looking at the Skyring Fixed Income Fund or the Skyring Platinum Fixed Income Fund.

If you're considering managed funds as part of your investment strategy, here's what you need to know.

Managed Fund Basics

A managed fund pools money from multiple investors to create a single investment fund, managed by a professional team. The fund invests across various assets like securities and loans. In return, investors receive units in the fund. The value of your investment changes with the unit price, which reflects the underlying performance of the fund’s assets. The current issue price for Skyring Fixed Income Fund and Skyring Platinum Fixed Income Fund as per the PDS is $1.00 for each unit.

Why Investors Choose Managed Funds

Both of Skyring’s income funds aim to deliver reliable monthly income while protecting your capital. Here’s what makes them stand out:

• Income-focused: Each fund aims to deliver regular monthly distributions to investors.
• Capital preservation: Skyring takes a disciplined approach to risk management and asset selection, prioritising the return of your capital as well as the return on it.
• Asset diversification. This can help investors achieve a lower level of investment risk across their portfolio. Your investment is spread across multiple assets, helping manage risk and reduce volatility.
• Access to broader investment markets. Managed funds may give you access to investment opportunities that are harder to reach as an individual.
• Professionally managed. A team of experienced investment managers will be in charge of your money. The fund managers are responsible for seeking out the best possible returns through careful selection of investments and by monitoring political and economic factors that may affect the performance of particular investment sectors.
• Simplicity. We handle the day-to-day investment management, income distribution, and reporting.

For the last decade at Skyring, we have successfully helped our clients take advantage of the best financial opportunities for their money. As a boutique non-bank Australian income manager, we are directly accountable to you, our investors.

Income vs growth returns

There are two types of returns for managed funds: unit price growth and distribution income. Skyring’s funds are focused on income returns.

• Distributions are payments received during the course of your investment. They consist of the earnings the fund has generated over the period and may include capital gains (from the sale of fund shares or other fund investments) or income (from dividends or interest). Income is paid to unit holders when a managed fund makes a distribution.

The funds are designed with a regular income stream in mind. Investors can choose to reinvest their distributions when investing in Skyring Fixed Income Fund or receive them as payments to your bank account — ideal for those seeking consistent cash flow.

Understanding Risk

There is a simple rule about risk which generally holds true for all investments: the higher the possible return, the greater the risk of loss over the short term. However, if you plan to invest long-term, these risks can be reduced, even for more volatile investments such as shares. Managed funds come with investment risks. These are outlined in the PDS and include:

• Capital loss - There is no guarantee that your initial investment will be returned in full.
• Liquidity risk - The ability to redeem your investment may be limited at times.
• Market and credit risk – Changes in economic conditions or borrower defaults can affect performance.

Diversification can reduce the risk. By investing across a range of asset classes that experience good performance at different times, the high returns you receive from one type of investment can work to offset lower or negative returns from another. At Skyring, we manage risk through thorough due diligence, robust investment selection, and ongoing monitoring. Our priority is protecting investor capital while aiming to deliver steady returns over the long term.

Long-Term Focus

Like all investments, managed funds work best with a medium to long-term view. Trying to time the market or exiting too early can lead to disappointing results, particularly during short-term volatility.

And while past performance is an important reference point, it’s not a guarantee of future outcomes. The fund’s strategy, structure, and management are just as critical to long-term success.

We recommend reading the relevant PDS for each fund and seeking advice where appropriate to determine if these options suit your investment objectives.

Learn More:

Skyring offers managed fund solutions tailored for investors who value income, transparency and capital preservation. If you’re looking to grow your wealth through consistent, well-managed income investments, we’re here to help.

• Explore the Skyring Fixed Income Fund
• Discover the Skyring Platinum Fixed Income Fund or
• Contact our team to learn which fund may suit your goals.