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Managed Fund - fees

Discussion in 'Investing Strategies' started by Selwyn M, 18th Jan, 2010.

  1. Selwyn M

    Selwyn M Member

    Joined:
    12th Oct, 2008
    Posts:
    5
    Location:
    Melbourne
    Hi,

    I currently invest into a Hunter Hall VGT managed fund direct with them. I am worried I am paying a premium total MER + entry / exit fees. Am I better off using a discount online broker such as Comsec? what is the consensus or keep paying direct to them?

    If there is another option how best do you keep fees to a minimum?

    Also, how do you think this type of fund compares to the LICs --> Argoinvestments.com.au or
    Afic.com.au

    Longterm?

    The way I see it if long term - is if Hunter Hall is a tad better on average then it can be better than the LIC option. But really need to justify the fees versus absolute returns. Don't want to lining no ones pockets if I don't have to :)

    Your help is appreciated.
     
  2. Intellikev

    Intellikev Active Member

    Joined:
    16th Dec, 2009
    Posts:
    28
    Location:
    Brisbane Qld
    Managed Fund Fees

    Hi Selwyn, from what you have said I would assume you downloaded a PDS from their web site completed the application form yourself and then forwarded the form direct to them. Generally the entry fee is payable to a financial adviser who does all the leg work on your behalf. This entry fee is rebatable down to 0%. If you did not have a financial adviser then you may not be paying an entry fee. Contact Hunter Hall and confirm this. If you aren't then you are only paying the MER. Then there is no point going elsewhere as the discount brokers may charge a fee as Hunter Hall does not pay trail to planners.

    Remember that the 43.8% return you received on your investment over the past 12 months to the end of December is net of fees and charges.
     
  3. Selwyn M

    Selwyn M Member

    Joined:
    12th Oct, 2008
    Posts:
    5
    Location:
    Melbourne
    They said my entry & exit fees are 2%. I do not need a financial adviser in this situation. Have been going direct up to date.

    Should I be buying through another party to eliminate the 2%?
     
  4. Intellikev

    Intellikev Active Member

    Joined:
    16th Dec, 2009
    Posts:
    28
    Location:
    Brisbane Qld
    Managed Fund Fees

    Ask them why?

    Their web page Hunter Hall Value Growth Trust says "Entry Fee 4% of which all may be rebated".

    This is a good example of reading the PDS before committing.
     
  5. piersw

    piersw New Member

    Joined:
    21st Jan, 2010
    Posts:
    3
    Location:
    Sydney, NSW
    Do you expect to be able to invest with no fees? there will always be costs of investing. Like running a business it is the costs of business. Unless of course you do it yourself. If you can generate the same returns or better, then you should look at this option.

    if i go to a doctor, do i get it free? if i want to go to a better doctor, say private or the best in the area, do i pay for it?

    having the correct structures in place can reduce these costs significantly.

    if you would like further information on that email me and i can give you more information.
     
  6. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Management fees are one thing - I don't have a problem paying a fund manager to manage my money if I think they are adding value to my investments.

    Up-front fees are only there to pay advisers, so if you aren't getting advice there is no need to be paying these fees.

    Exit fees are simply evil in my opinion.
     
  7. Intellikev

    Intellikev Active Member

    Joined:
    16th Dec, 2009
    Posts:
    28
    Location:
    Brisbane Qld
    Managed Fund Fees

    Hi Selwyn, I refer you to page 28 on the current PDS for Hunter Hall. It states there are no exit fees associated with this investment. It also states that Hunter Hall has elected to forgo it's claim to a 1% entry fee. I am wondering how did you lodge this application? Did you post it to Hunter Hall or did you hand it to some advisory firm? If yo are not having any satisfaction ther is always the Ombudsman.