Managed Funds Can you help me get started

Discussion in 'Shares & Funds' started by Mon__, 15th Jul, 2007.

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  1. Mon__

    Mon__ New Member

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    Excuse this completely basic question but I'm pretty clueless (hopefully for not too much longer) when it comes to share investing but I like to learn by doing so here goes.....

    I would like to invest in the Navra Blue Chip Australian Share retail fund to offset costs of -ve property portfolio. I don't have a financial advisor so am not sure how to go about this. I would also like to a leverage into this fund using a margin loan of say 50%.

    Whats my first step? As I'm new to this should I use a financial advisor or can a mortgage broker help or is it simple enough to do directly thru Navrainvest? :confused:

    Thanks

    Mon
     
    Mon__, 15th Jul, 2007
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    Mortgage brokers don't typically do margin loans - and in my opinion, there's no need ... there aren't that many margin lending products to choose from, and to a degree you are limited by which funds you want to invest in anyway.

    Have a look at the choice of margin loans here: INFOCHOICE | Investment | Margin Lending

    The LVR lookup tool is useful for telling you what lenders will offer on various shares and funds (but note that it is not always up to date - so worth having a look at some of the individual lender websites to check their current offerings). It's pretty straight forward to refinance at a later date if you need to - so don't get too stressed about getting things perfect up front (naturally if you fix interest rates, things become a bit more complicated and potentially expensive to refinance).

    I currently use St.George for my Navra holdings (75% max LVR) but there are several other lenders also offering 75% max LVRs on Navra - so shop around a bit. Even if you are only looking for a 50% LVR on your portfolio, it's worth using a lender with a higher max LVR to give you a bigger buffer.

    Once you have selected a margin lender, ask them what the best way to invest in your chosen fund is while avoiding the entry fee - some of them will act as your "advisor" and arrange to remove the entry fee, while others will require you to use a third party discount fund provider - someone like Managed funds and superannuation with 100% rebate of entry fees is a good choice - you get a PDS from them, fill in the application form and send it to your margin lender, who will then draw a cheque and send it on to the fund manager.
     
    Simon Hampel, 15th Jul, 2007
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  3. Nigel Ward

    Nigel Ward Well-Known Member

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    fyi I'm happy to note that BT has boosted the LVR for Navra wholesale to 75%...

    Cheers
    N
     
    Nigel Ward, 17th Jul, 2007
    #3
  4. Bantam Roosta

    Bantam Roosta Well-Known Member

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    According to Infochoice, the current list of margin lenders that have Navra retail fund on their books are ANZ, CommSec, LE and Lift Capital at 70%, and BT, Colonial, Macquarie and St George at 75%.

    Now I'm not too sure on the reliability of this information as Navra are not on the current list of approved funds at CommSec (at least not that I can find). I have contacted CommSec about and this and am waiting for a reply.

    BR
     
    Bantam Roosta, 17th Jul, 2007
    #4
  5. Tim__

    Tim__ Well-Known Member

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    I rang Commsec a few weeks ago and they confirmed then that Navra was no longer on their list.

    Tim
     
    Tim__, 17th Jul, 2007
    #5
  6. Bantam Roosta

    Bantam Roosta Well-Known Member

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    I received this reply from CommSec today. Good news for anyone with CommSec.
    BR
     
    Bantam Roosta, 19th Jul, 2007
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  7. Andrew G

    Andrew G Well-Known Member

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    I checked today and Navra Retail is definately listed, at 75% LVR.

    Andrew.
     
    Andrew G, 4th Nov, 2007
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  8. ffc1883_1996

    ffc1883_1996 Member

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    Please forgive me if it's a silly question

    Is it possible to sumit your own application to purchase a share in the Narva fund (avoiding adviser fees) and then find a margin lender who will let you borrow using the fund as security (like taking out a LOC on an unincumberred property)?
     
    ffc1883_1996, 15th Nov, 2007
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  9. Simon Hampel

    Simon Hampel Founder Staff Member

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    You can refinance a managed fund easily - this is exactly what I did myself - I used Neville Ward Direct (which is now Commsec) to invest in Navra retail fund avoiding the fees, and then later I got a margin loan and submitted that fund as my initial security. I was then able to borrow against that security to make additional investments.
     
    Simon Hampel, 15th Nov, 2007
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  10. AsxBroker

    AsxBroker Well-Known Member

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    Hi everyone,

    It has been set in http://images.commsec.com.au/pdf/coloniallvr/MFLVRList.pdf

    Navra Wholesale Aussie fund Comm Margin Lending won't lend anymore against but Retail is still open to more lending (as well as the American fund).

    Cheers,

    Dan

    PS This is general information not investment advice. Before making an investment decision speak to your FPA registered financial planner, accountant or tax adviser.
     
    AsxBroker, 15th Nov, 2007
    #10
  11. Simon Hampel

    Simon Hampel Founder Staff Member

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    I've now added LVR information to Compare Funds - Compare Funds - Index of all Margin Lenders ... you can see which lenders will give you margin against your funds, and what the maximum LVR is.

    This information is updated daily directly from the margin lenders - so it should be considered fairly accurate. Don't forget that some lenders will give you margin on certain funds which aren't listed on their official lists - so it always pays to ask. I've also managed to get margin lenders to increase their LVRs in some cases!
     
    Simon Hampel, 23rd Nov, 2007
    #11