Join our investing community

Invest Smart and Trail Cap.

Discussion in 'Managed Funds & Index Funds' started by Simon, 23rd Nov, 2007.

  1. Simon

    Simon Well-Known Member

    Joined:
    17th Sep, 2005
    Posts:
    520
    Location:
    Newcastle
    A year or more since I transferred all my holdings of managed funds over to Investsmart and registered them for the trail cap. I also bought new funds.

    They are receiving trail for over $250K worth of managed funds. To date I have accumulated $11.29 in trail rebate.

    I check my Trail Cap regularly to see if it has started only to find MY CFS funds are still not registered. I speak to them and they tell me it takes time - sometimes up to 6 months. From memory it has taken me more than 18 months and still nothing.

    I am starting to hate these guys, more so after I tried to call and the hold message didn't let me wait - just asked for my number so it could call me back. From experience they don't call back.

    My question is:

    Is there a charity that I can register my funds with so that they can get the trailing comission?

    At least if someone is going to get it they may as well deserve it. At least a tax deduction is better than this trailcap joke.

    I hate the thought of these clowns keeping the trail under the false representation that they would rebate 50% in the first 12 months and everything above a set limit after that.

    so I have emailed them and told them that unless this is fixed this week I was off to the Ombudsman - sometimes the only way to get the ball rolling.

    Thanks
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    Investsmart are not the only people offering trail rebates - there are a few other sites out there too.

    It has been suggested to me that my new site (Compare Funds) might lend itself to evolving into something like a discount managed fund provider ... which I wasn't initially interested in pursuing (too many other players in that space).

    I'm wondering what people are looking for from a discount funds provider - is there something you'd like that nobody is doing right now or that they are doing poorly ?
     
  3. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
    Posts:
    1,367
    Location:
    Melbourne, VIC
    Sim, there isn't really much to do in this space.. other than provide PDS's. A discount funds provider is exactly that.. self service.

    Something not provided by them would be things like insurance.. if you could provide a commission refund on various insurance products, that would be something unique.
     
  4. hiflo

    hiflo Well-Known Member

    Joined:
    3rd Jun, 2006
    Posts:
    68
    Location:
    Sydney, NSW
    Question:

    I have direct access & investsmart as my brokers.

    Does it cost any money to change the brokers ie from Direct Access to Investsmart?
     
  5. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
    Posts:
    1,367
    Location:
    Melbourne, VIC
    no, just fill in the broker nonimation form from investsmart, and send it to investsmart. They arrange the rest. it takes about 2 months to arrange the transfer
     
  6. Compleks

    Compleks Well-Known Member

    Joined:
    18th May, 2007
    Posts:
    348
    Location:
    Melbourne
    I thought that whoever owned Direct Access shut the site down after buying InvestSmart?
     
  7. Compleks

    Compleks Well-Known Member

    Joined:
    18th May, 2007
    Posts:
    348
    Location:
    Melbourne
    Keep us updated. I've heard this mentioned a few times, and it's not something they should be able to get away with.

    Hope it works out for you.
     
  8. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    There's at least one company I know of doing this already (YourShare) - not sure how it works though.
     
  9. samaka

    samaka Well-Known Member

    Joined:
    30th Sep, 2007
    Posts:
    308
    Location:
    Sydney
    Fairfax owned Direct Access. Then they bought InvestSmart - so they merged* them together.

    * by merged I mean killed off one.
     
  10. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi Simon,

    I don't think there is charity that does what you are wanting. Probably too fidgety for them as it's not a main fund raising process. Though it's a very interesting idea.

    I guess half the problem is that there is very little incentive for them to do it quickly and efficiently...

    By the way, what product are you in? As over a year 0.5% (average as most products are between 0.4 to 0.6 ex GST) is $1,250 so your basically paying $100 per month before your discount, why have they only given you a $11.29 refund? Sounds very low, what's the trailcap max you pay per annum?

    Cheers,

    Dan
     
  11. bundy1964

    bundy1964 Well-Known Member

    Joined:
    22nd Dec, 2006
    Posts:
    351
    Location:
    Adelaide, SA
    I know there is at least one FP that is a Board Member of a charity.
     
  12. Simon

    Simon Well-Known Member

    Joined:
    17th Sep, 2005
    Posts:
    520
    Location:
    Newcastle
    This time Invest Smart fixed up the typo that had messed it all up for so long. Can't believe that they kept telling me to just wait when all along it was a single digit typo.

    Either I got a drone who actually cared about her job or invoking the name of the Ombusdman lit a fire under their arses.

    I was whelmed to notice my trail cap swelled from $11.29 to the princely sum of $62.19. This is from my $100K odd CFS funds.

    Apparently my $200K of Navra cannot give me trail rebate because they don't report electronically. Bit of a bonus for Invest Smart I must say.

    I would transfer them to a charity in a heartbeat or even to a FP who bought me a carton of beer every year :eek:

    It really isn't the money. I just resent my funds going to anyone for no reason at all.

    Maybe this charity caper is one worth pursuing for a FP, perhaps they can offer to distribute 50% of trail to a panel of worthy charities and then advertise in the Fin Review. There must be a lot of people out there like me who bought through a discount broker and would rather their trail be used for good instead of for evil.
     
  13. PaulA

    PaulA Member

    Joined:
    13th Jul, 2007
    Posts:
    9
    Location:
    Sydney
    Hi Simon,

    Each year YourShare donates a small amount to charity - based on their number of clients - 2007's charity was the Australian Cancer Research Foundation.

    Hope this helps.

    (PS. I am associated with YourShare)
     
    Last edited by a moderator: 10th Jan, 2008
  14. DaveA

    DaveA Well-Known Member

    Joined:
    19th Feb, 2007
    Posts:
    617
    Location:
    Sydney, NSW
    I noticed that yourshare has a reference to InvestEd however its not clickable. Im just wondering if anyone has the affiliated interest in it or if its just pure advertising.

    Had a flick around the site particular looking for the margin loan part but couldnt find it, can anyone give me a link...

    From Pauls post im going to take a stabe in the dark that he is Paul Brady and the owner..
     
  15. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    No affiliation - it was originally a reciprocal link based on an agreement we had a while back. I believe it is being removed soon.
     
  16. MJRoss

    MJRoss Member

    Joined:
    10th Jan, 2008
    Posts:
    15
    Location:
    Melbourne, VIC
    Hi Simon, I am an indepenent financial planner and have just joined the forums.

    I am in business with a few other financial planners of Australia and will raise your suggestion at our next weekly meeting because I think it's a great idea.

    The only issue to consider is the admin burden that we face of receiving commissions and then processing the rebates out to each individual party - it is the bane of our life as independent financial planners!
     
  17. PaulA

    PaulA Member

    Joined:
    13th Jul, 2007
    Posts:
    9
    Location:
    Sydney
    Hi DaveA,
    My name is Paul Brady, and I am a director of YourShare. So i am biased to the YourShare Yearly Cash Rebate service and how we help people who make their own financial decisions make more from their investments.
    Re margin loans, there is no page dedicated to the how YourShare is able to provide a cash rebate over your existing margin loan. However it works the same as rebates generated by your managed funds, etc.

    Hope this helps
    Paul