I am looking for my next investment. Probably a managed fund and certainly a growth oriented one rather than an income fund (I do intend buying more income funds when the US one comes along). I will probably be investing about $100K with 50% gearing. I am looking at a few Colonial First State funds as I have some there already and am comfortable and happy with their work to date to build my meagre wealth. I have made money on floats before and did toy with the idea of trying to do so again but I recognise this is speculative behaviour and I have decided to be an investor instead so I will be leaving them alone. I am currently considering the Global Resources Fund. Although I believe Industrial shares perform better over the medium term due to the higher dividends and retained earnings I am underweight in the resource sector. Also the Geared Fund. But if I gear into a gear fund am I not magnifying the upside/downside even further? I have been using the last 3 years performance as a criteria for selection. Is this too small a time frame? A lot has happened in the last 3 years and it perhaps isn't indicative of the funds performance in all phases of the market? What do others think? Thanks for the indulgement,
Simon, Great question! I'm in a similar boat and was contemplating the same thing. I've got about $100K sitting spare in an LOC account waiting for a home (no pun intended as it was originally earmarked as 20% down on an IP, but I can readily pull it back out of the fund when the property market recovers). I've got some decent $$$ already in Steve's income fund so need some growth to balance me out. I think resources are hot to trot and would like some guidance on the best growth resource fund I can get into. Did you know that BHP has control of 70% of the worlds known Uranium resources? Not sure that this is factored into their current share price... Ah well, look forward to some posts from the fund gurus. Cheers, Michael.
Curious to know if any of you guys have had a look at available managed investments via the Wealthtrac Portfolio Service (Oasis) marketed by Salisbury Group Advisors? MJK
I would narrow down on your selection criteria. EG .. I use the following 'rules'.. It helps to narrow down the list. Never pay entry fees to invest with a fund if it can be avoided. Share funds must have management and rules that allow flexibility To judge the suitability of a fund it has to be assesed during years the market has performed badly (eg 87, 01) Share funds will ideally have buy-in by the people that manage and work for the company .. Eg linked to wages, bonuses, superannuation.
Not yet but I will A few questions: Do they become my advisor and receive the trailing commission? In addition I pay them another % pa to perform this reporting for me? Other than the one statement (which is great) what other benefits might I get for this fee? Currently my funds are in the name of LE as well as mine. Will Wealthtrac interfere with this relationship? Thanks www.wealthtrac.com.au
http://www.travismorien.com/investment.ppt A well researched point of view which makes a lot of sense. See his faq for more information
They're only your adviser if you take their advise. Hopefully over 10% return I have no idea Rgds MJK
MJK - I am a little confused - I thought Wealthtrac was a wrap management platform and not a fund manager in itself? Surely they add no extra return to the funds I ask them to manage? In addition I thought I read that they rebate the fees and keep the trail? I think one of us is a bit confused here about the purpose of Wealthtrac Thanks
Surely the Wealthtrac product disclosure statement will answer all these questions??? (you may have to wade through 80+ pages though ) when in doubt read the instructions I guess?!
Shhh Nigel ... if everyone were to just read the instructions, there'd be less value in forums like this where you can just ask someone else
I did read the instruction but MJK led me to believe I had misunderstood them. Am I posting questions I shouldn't? I would appreciate some guidance here. Thanks
Sorry Simon, Yes I understand Weathtrac to be a platform also. When I refered to advisers I ment Salisbury. Re fees all I know is I pay 1.1% entry and trailers are covered by the various funds. After 300k invested through a Salisbury adviser their is no longer entry fees for further fund investment be it Weathtrac platform or Navra direct. Sometimes I'm a bit simplistic but usually I'm only concerned with entry fee, Interest costs and net return ( distributions and growth less fees). If they are all within my expectation I dont really care how much the fund manager makes or the adviser makes ( providing its not excessive) I see my success tied to theirs to some extent. If they don't perform I pull my money. Usually I invest in stages as my confidence grows with a fund. I must confess I havn't read the whole propectus- I just expect my wealth to grow. If you cant trust your advisor dont take their advice. MJK
Hi Simon, Back to your original question: Yes there are various places that one can source Growth funds . . . Wealthtrac being a good example, but of course speak to you FP. The question I have is . . . Why a growth fund?? When it comes to accruing CG with the use of leverage . . . well it is pretty hard to beat property as the preferred medium!! Property for CAPITAL GROWTH Shares for INCOME Cash for BUFFERS / liquidity I am not suggesting there is no place for shares as a CG accruing investment, rather just stating that the concept of LEVERAGE, makes property the better CG vehicle. Regards, Steve
Hi Steve, The theory is fine but many of us are sceptical about the capital growth prospects for property in the next few years hence the desire to fing CG funds. Having said that there is no difference between income and capital growth if you re invest he income is there? Apart from tax I suppose, but if you have enough offsets its OK. There is also the leverage difference, as you say, but there is no point leveraging into a sector thats not growing is there? MJK
The main issue with my situation is that equity and gearing is not the issue. Serviceability is. I also don't need to be committing myself to the hilt in this phase of my life. So property is no more attractive than shares for me atm. Shares have wonderful CG as well as property and perhaps even more so in the immediate future? What do you reckon? I think property is a little way off it's growth phase, in general that is. So a balanced portfolio is my goal. How to pick a growth fund? I am told history is no indication. What is? Perhaps I am just fighting the proven formula here Cheers,
Hi Simon, That is why an INCOME fund . . . for serviceability!! Then reinvest the income into more shares(more units for CG) Regards, Steve
OK. Thanks Steve. Will be onto it shortly after we sort out the new PPOR issue which seems to be complicating everything Cheers,
