Managed Funds Macquarie Equities Enhanced Income Fund

Re: Multi-Strategy Fund

Very interesting Mr Darcy, good pick up

 

Here's the Macquarie Newton Multi-Strategy PDS:

http://www.macquarie.com.au/retail/acrobat/emg/newton_capital_protected_pds.pdf

 

If you add all the fees and interest, what is the break-even point on this fund?

 

It was something like 3.6% in fees, I can't remember the exact number. Add to that the 7.5% in interest (or was it 7.25?), and you're basically looking at a 10% break even point. And that's not even taking inflation into account.

I think I will go for this Macquarie one though, I have a tax problem this could help solve (for this year anyway).

 

So 10% break even point and then 20% performance fee? ack!!

 

I think it's more complicated than that. In fact, I need to read it a few more times to understand high water marks etc. But the 20% performance fee is only on an outperformance of whatever index the fund is up against. Sometimes it's against the RBA cash rate.

 

Awesome

Glebe: have you had previous experience with Freeman Fox?

 

Nope. I'm attending Peter Spann's free seminar this Thursday though, the second most important engagement of my week. The first is the Mundine vs Green fight on Wednesday

 

I'm going down to Melb on Friday for his Wealth Magic workshop. We were given cheap tickets so I thought I'd give it a go and have a bit of a holiday. I'm going to stay for the Investor Update on Monday too. I'm going with an open mind, so we'll see.

I've been doing a bit of DD for the fund in question and there's only one thing left that concerns me. The buy-write and dividend run-up strategies perform best in a rising market don't they? Not the best compared to other funds, but the best absolute returns? I can't see it being any other way because both strategies benefit from capital growth (in addition to proceeds from writing calls). Well... I'm wondering if the performance is going to be adequate when the market isn't doing as well as it has?

Looking at the buy-write mac fund, it has returned about 13% since inception. From what I can see, this has generally been during a rising market. I realise it should still make a profit in a sideways market, but will it be enough to make it worthwhile. Just thinking aloud; still considering going for this fund or something similar.

 

-T-

I won't be able to make it to his Investor update, so would appreciate it if you could post some of Peter's main points here.

I asked Peter on the Somersoft forum why you would invest in this fund as opposed to the multi strategy fund Glebe mentioned. His answer was mainly because it was created for his clients who already might have had exposure to Mac multi strategy series 1 fund and wanted a fund more closely based on Peter's own strategies. His also mentioned this one is purely for income while the multi strategy has element of growth and income. Spoke to Macquarie, the person there was plugging the multi strategy fund because it gives you exposure to more of their funds with the ability to move allocations around between all those funds when some are performing better than others.

Interesting to see ANZ yesterday that went ex dividend and the share price dropped by more than double the dividend. Not the ideal in terms of the income timing fund.

 

Anyone know if the Macquarie Newton Multi-Strategy is available through discount brokers? ie the ones that rebate entry fees etc. I've looked at fundbroker.com.au and pida.com.au and can't see it.

OR

If I invest via Macquarie do they rebate entry fees?

Edit: OK I think I've got one http://www.xavax.biz/newton.html. But these guys seem a bit dodgy, what does "up to 2%" rebate mean? 0.001%?

 

I can't find it either, I think it's a Freeman Fox only fund. A couple of other sites to check for other funds though:

http://www.xavax.biz/
http://www.2020directinvest.com.au

Apparently 2020 rebates the loan application fee and the entry fee for Reflexion.

 

Ah you beat me! Thanks

 

I downloaded the PDS and loan forms straight from Macq, about to mail them off tomorrow. No advise fees I believe.

The Maq Enhanced Income Fund I think is tied to FF, but I elected not to go with that product.

 

Advisor fee = entry fee?

http://www.2020directinvest.com.au/investment_FundProfile_ManagedInvesment.cfm?APIRCode=MAQ0409AU

0% with these guys anyway.

 

I spoke to Mac direct and they confirmed no fee if you go direct to them.
Its the Multi strategy series 2 fund.

http://advisers.macquarie.com.au/advisers/spec_products/alternative/newton/newton_detail_page.htm

That should work....

Kevin