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Challenger China and Asia Fund

Discussion in 'Managed Funds & Index Funds' started by archangelsupreme, 19th Sep, 2007.

  1. archangelsupreme

    archangelsupreme Well-Known Member

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    Is anyone currently on these managed funds? What are your experience so far?

    Would you recommend investing in either of these funds, or is now not the right time.

    Thanks.
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

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    AA

    Whilst we can all discuss the merits of various funds, shares and investment approaches...no one here can make any recommendation about any financial product or service..

    It may sound like mere semantics but there are licensing and disclosure implications.

    Certainly not seeking to stifle debate though.

    Perhaps you could kick things off by identifying what aspects of these funds as described in the pds makes them a good fit for your investment plan?

    Cheers
    N
     
  3. archangelsupreme

    archangelsupreme Well-Known Member

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    Well it's pretty evident that these are high performing funds with strong results over the past year, 2 years, 3 years and 5 years.

    My portfolio is currently Domestic centric (BT Imputation and Macquarie Small Companies), I want to diversify a bit more and branch out into the international markets or special sectors (such as ethical/resources/property). So just weighing up my options.

    I've been looking at all the International funds on offer and notice that Challenger's fees are relatively compettiive and they have a minimum investment of just $5000 compared to $20,000+ for other funds.

    Also the Challenger China share especially has seen huge growth...but i've heard grumbles that the returns lately aren't so crash hot....can someone explain?

    Thanks.
     
  4. bundy1964

    bundy1964 Well-Known Member

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    If it's HBC0027AU it doesn't look too bad to me.

    Performance Date 1 Month 3 Month 6 Month 1 Year 2 year
    31st Aug 2007 13.34% 33.54% 46.71% 86.55% 57.76%
     
  5. Nigel Ward

    Nigel Ward Team InvestEd

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    Yes that's superb short term performance. :D

    I guess we just need to remember that past performance is no guarantee of future performance. :rolleyes:

    What sort of LVR will the margin lenders provide on this fund?
     
  6. bundy1964

    bundy1964 Well-Known Member

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    60% from mine. They do Platinum Asia Fund PLA0004AU at 75% so many options and such a big window :eek:
     
  7. AsxBroker

    AsxBroker Well-Known Member

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    LVR

    Hi,

    Perpetual is offering 100% LVR on the Aberdeen Asia fund through PPI2.
    Perpetual Protected Investments - Series 2

    If this helps.

    Dan

    This is not investment advice and only general information available in the wider community. Before making an investment decision see your FPA registered financial planner, accountant or tax adviser.
     
  8. crc_error

    crc_error The Rule of 72

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    Thats great! Does property offer 100%LVR without the large entry fees ie stamp duty and bank fees?
     
  9. AsxBroker

    AsxBroker Well-Known Member

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    Hi Crc,

    Are you talking in general? or about property or about PPI2?

    Cheers,

    Dan
     
  10. crc_error

    crc_error The Rule of 72

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    Hi Asx Broker,

    I'm reffering that there are several 100% finance products avaliable which allow investments into managed investment schemes. These offer low cost finance to enter a low cost investment. However direct residential property's are very costly, generally offer little flexability in terms of selling down part of your investment, offer little diversification, has large entry costs, and large exit costs. The only benefit of IP's would be their high LVR's with no margin calls, yet these products offer this as well now. even higher LVR of 100% - with no mortgage insurance!

    These are the reasons I don't like IP as a investment, as there are other more modern products out there which offer allot better value to the investor along with more flexibility and a no hastle investment. ie no blown hot water units, no tenants, no tribunals etc.

    If anyone can explain to me why IP's are a better investment, then I'm all ears.

    Tom
     
  11. AsxBroker

    AsxBroker Well-Known Member

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    I do agree with you Tom.
    You can't sell of a bathroom or spare bedroom if you need some extra cash.

    I'm sure though that some people would say they are great but diversity and difference of opinion is what makes a market.

    Cheers,

    Dan
     
  12. crc_error

    crc_error The Rule of 72

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    The other problem with IP's is the fact you can't see your REAL return.. sure you can see the capital growth, but many people forget about all the hidden costs paid along the way which should be subtracted from the end result.

    ie I had a IP for 5 years.. bought in 2000, sold in 2005. Bought for $240,000, sold for $380k. At face value the result looks great, but the devil is in the detail. I paid $50,000 to renovate, I paid $15,000 PA in losses each year, $13,000 in stamp duty, $10,000 agent fee to sell, $2000 bank penality, $3500 mortguage insurance.

    So what looked like a $140,000 gain really was a $46500 profit on the $40,000 initial investment, plus $15,000 PA over 5 years. This result was good, but could have been achieved via managed investment schemes as well, with lower risk through more diversification and more flexibility.