Managed Funds Ideal length of PDSs

Discussion in 'Shares & Funds' started by Nigel Ward, 14th May, 2008.

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  1. Nigel Ward

    Nigel Ward Well-Known Member

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    Some IFSA research has indicated that no longer than 20 pages is the ideal length for a product disclosure statement.

    Source: Financial Standard

    What do you think are the key things you want to know when considering an investment in a managed fund?

    Cheers
    N.
     
    Last edited by a moderator: 14th May, 2008
    Nigel Ward, 14th May, 2008
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    One of the most important considerations to me are the costs - entry costs, ongoing costs and exit costs.

    This is particularly true for structured investments such as capital protected investments.

    More thorough coverage of the worst case scenarios would be better as well - too many PDS's I've read included examples of when times are good, but no detailed examples of what may go wrong with an investment.

    I think we have to be careful not to make PDSs into marketing documents - they should be educational as their first priority - you don't put bad news examples in a marketing document (you hide it in the fine print using as much jargon as possible :rolleyes: ).
     
    Simon Hampel, 14th May, 2008
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  3. AsxBroker

    AsxBroker Well-Known Member

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    Hi Nigel,

    I agree, it's all red tape from Compliance departments who are smart lawyers who know how to keep themselves in jobs. Certainly AML/CTF laws are, surely the ATO can track it all via TFNs? Too easy... Instead, we've got to joke about it and tell client's we even "card" our staff...

    Cheers,

    Dan
     
    AsxBroker, 14th May, 2008
    #3