Recently I had the opportunity to do a video conferencing about Unit Trust presentation to a prospect. He is working with the 7 Sisters. Fairly young age. Started to think about his future and the family. As typically it may seems, my presentation start with very basic yet fundamentally needful to a new investor. I started with the flow chart of Unit Trust. As we go along suddenly he started asking for a glaring question. He threw me a very basic question.
Between a Unit Trust Consultant and Fund Manager, who is the most critical to my money for fund invested? Is Unit Trust Consultant will do the investment strategy on my behalf or what not?Forbes Listed employee
As his background is from an oil & gas industry it become kind of relevant for me to approach him by using analogy of Offshore Installation Manager on the platform and Fund Manager himself. Hopefully he understand my message lies within those context.
The role of Unit Trust Consultant is to:
- Analyse client’s financial situation
- Establish client’s investment goals
- Propose an investment plan to achieve their goals with diverse range of products and services
Well, for an engineering graduates, finance can be a daunting task for them to gauge. So I’ve made some example as infographic below:
If you have been to any offshore platform through out Malaysia, you’ll see there is only one manager manning centrally on top of fixed structure. According to Petronas Activity Outlook 2020-2022, there are 353 offshore platforms scattered across the region. These structures may as well represent the funds available in Unit Trust Management Company.
Let says for each platform require one OIM to be in place, same case to be analogised for fund manager. He’s responsible for investment strategy and stock selection based on solid research performed by his team which consist of large group of Analyst. Therefore, fund manager is the most critical to your money invested. OIM too require a team in order to run the daily routine. Normally consist of Production Supervisor, Maintenance Supervisor and a number of Technician and Rigger.
Even if you are dealing with fairly new Unit Trust Consultant, he is not in pole position to reap the rewards from the stock market. This is true as well to any young Engineer who went onboard and performing his duties. He needs to get over there and fulfil his responsibilities. Young engineer may draw flak for his naivety but without OIM approval, he may not been granted to do any kind of work on the plaform!
However, experience Unit Trust Consultant and engineer may analyse your financial goal and solving the problem efficiently, respectively. Hopefully my explanation to him may clear some air that linger on your thought whoever read this. If you need any advise to invest for the first time in Unit Trust, you may contact me as below