Managed Funds Opinion on Switzer growth fund?

Hi everyone,

Has anyone checked out the Switzer growth fund yet? Any opinions on this? I'm wanting to invest in a safe fund. I'm an old school thinker who only feels comfortable with property investing but I want to diversify a little into other asset classes.

Switzer Dividend Growth Fund – Switzer Asset Management


-Frank

 

Management fee is 0.89% and it is looking to invest in mainly large caps - a very well researched market segment.

If you are looking at a safe fund then I wouldn't be looking at something just listed.

Have a look at the older and low cost Listed Investment Companies (AFI, ARG and MLT among others). They are tried and tested for many decades, they invest in a similar market segment and look to pay a stable dividend all at a lower cost (~0.15%).

AFIC :: Australian Foundation Investment Company
Argo Investments Limited
MILTON CORPORATION LIMITED | An Australian Listed Investment Company Since 1958

That 0.75% fee difference really adds up long term and presents a significant "head wind" to the performance of SWTZ.

*I hold all the LICs listed above

 

maybe i am not looking in the correct place but i would have like to see at least the top 5 holdings .

but no matter, they are relying on 'cherry-picking ' the XJO ( ASX top 200 ) and tweaking as necessary

so ... a stable well known LIC ( i chose BKI and not the ones Hodor selected a timing and entry price thing , ) v. SWTZ , with a more active mandate or an ETF focusing an ASX top 200 , top 100 , top 50 or top 20 or a top 200 'smart beta '

one selling point is quarterly ( 3 monthly ) divs , no franking is mentioned ( that i saw , so i would assume none ) , no ( extra ) performance fee ( could be good or bad )

i would compare SWTZ against a 'smart beta ' ETF for a close to fair comparison ( still not apples v apples ) computer v 3 top investment brains .

now 'safe ' is the word that sticks in my throat , i am not sure anything is 'safe ' from heavy capital loss over the next 5 years , but in 10 years things might look better .

the timing of your buy-in might actually be more important than the investment selected ( unless your selection fails completely )

SWTZ is all reputation and no track record and even top 100 stocks have epically bad moments ( i hold WOW and ORG as two examples )

not as simple as it seems

 

ETF structure so franking will be inline with the underlying stock. ASX200 is franked around 70% so I would expect that are better given the mandate to try and have high franking.

 

not 'stock-picker' given the 3 main investment personalities used ?? ( given the 1% to 20% cash mandate )

i would have thought a little like a Wilson mid-cap 'actively managed '

mid-term and trend-trading but with an XJO ( ASX top 200 ) focus .

sorry for being cynical , but if i see a facet omitted ( from mention ) i assume nil benefit until i know differently .

SWTZ needs a track history for me 'rockstar names ' aren't enough for me

i even waited on buying into CIE ( which proved to be modestly beneficial )

but i will be watching SWTZ ( but not as closely as MLT as i stalk that elusive entry price )

 

Did not have experience with this company. But once my friend was sharing about
Forager funds management.