Which type of fund makes investments directly,rather than acting as an agent?

A) unit trust
B) superannuation fund
C) life insurance funds
D) individual fund

Question

Which type of fund makes investments directly,rather than acting as an agent?

A) unit trust
B) superannuation fund
C) life insurance funds
D) individual fund

Quizplus · Accepted Answer

Life insurance funds include life insurance,life assurance,annuities,pensions and superannuation products.In Australia,life insurance companies are established under specific legislation,which places restrictions on the company's activities.Life insurance companies make investments directly,rather than acting as an agent.While most fund managers are appointed as an agent,life insurance companies act as principals.Hence,investments are taken directly onto the balance sheets of life insurance companies through the special vehicle known as a statutory fund.

Which Type of Fund Makes Investments Directly,rather Than Acting as an Agent