Managed Funds Managed Fund Provider

I might take my small amount out of etrade and try the other mob instead. Cheers


edit: is it https://www.investsmart.com.au you mean?

 

I think I worked out why I went with etrade... I'm starting with a small amount. With investsmart you have to abide the funds minimum purchase requirements. With Etrade you can invest in the wholesale fund with only $1000. I might keep saving up to 7-8k, take it out of etrade and then try a 20k margin loan, through investsmart. Does it sound like a plan?

 

G'day,
What happens if you are not getting a margin loan? I would like to go through Investsmart due to the initial 4% rebate, plus the trailcap promotion, so if I am just using my own cash or r/e equity, do I approach the fund manager directly?

Andrew.

 

Fill out the application via investsmart and then send that to the fund manager.. it will contain a stamp for the "broker".. back on the investsmart site I think you just put your fund client number on the portfolio to track your trailing cap.

 

Saving on fees

There are several ways into managed funds:
1. WRAPs - basically provides an adminsitration system which allows you to buy wholesale managed funds and shares in your own name. The farce is that once you have paid wholesale rates , lets say 1% , you then have to fork out up to 4% entry fees, 0.80% (or 80 basis points/ bpts) for platform fees and up to another 50 bpts or so for the adviser, most time which is unable to be dialled down. And on top of all these fees you have transaction fees for every time you wish to buy/sell and scratch your nose. Examples are BT Wrap and Macquarie WRAP. WRAP fees are generally unbundled (ie each fee is individually quoted such as wholesale rate, platform fees and adviser fees). On the upside you have an online platform to administer your investments including buy/sell and research etc.

2. Master Trusts - these are again administration platforms however the trustee owns the funds on your behalf. They generally have less options, because the trustee have to agreee to all funds added to the platform. Similar fee structure to the WRAP's, except less on the individual transaction costs and fees are generally bundled ie only one figure ie MER quoted which includes wholesale rate, platform fees and adviser fees). On the upside you have online platform to administer your investments including buy/sell and research etc. Examples Colonial First State and Perpetual Wealth Focus.

3. Simple retail managed funds. Most of the large fund managers now actually only sell their funds under platforms. Much more profitable! Interesting enough most retail funds only paid 40 bpts (or 0.4%) to advisers, the platforms pay more like 60bpts. Funny that 70% of flows now go into platforms. Most of the boutiques will have retail funds, though to be honest if they are good they will already be included under the platforms.

So when it is all said and done you are paying somewhere near 2% as fees, though now under a platform have a better system to adminsiter and consolidate your investments under the one account.

Colonial First State is regarded as one of the cheapest platforms. They also dominate the market place owning more than 40% of this space. It is a scale game for fund managers so considering Colonial's size you could imagine fees to come down further.

You are able to invest in any platform through InvestSMART. Simply go to Managed funds and superannuation with 100% rebate of entry fees and research on funds and shares - InvestSMART and find the fund or platform you require. Download or request Product Disclosure Statement (PDS) , print off aplication, fill it in sign it , attach your cheque etc and send it in to the fund manager.

InvestSMART is simply the broker and does not handle any money.

InvestSMART rebates 100% of entry fees usually 4%. And our TrailCap program rebates 100% of trailing commissions ( ie ongoing adviser fees usually 60bpts with these platforms) we receive above $396 p.a.

I hope this helps.

PS: I work at investsmart.com.au

 

Hi lateron

and welcome. I am just wondering whether the context of your text indicates that you are a part of the investsmart organisation?

Cheers

 

hi Handyandy

yes I am part of the investsmart organisation. In fact it is how I found InvestEd, because investsmart is mentioned so much on it.

I hope my post was seen as useful and not self serving, because members seem confused to what the various products are and how the various brokers such as investsmart work. So I thought I would give my two cents.

Hopefully by being part of this forum I firstly can learn a little more about investing and secondly take this knoweldge back to InvestSMART to improve their services and make investing and researching a little bit simpler.

I did not wish to divulge who I was because I did not want to put myself out as an expert, after all we are still learning.

I will change my signature and disclose who I am.

 

Hi Lateron

I thought your post was a very good contribution and not overly selfserving. Just be aware that in any exposure to a public forum you will receive both praise and critisicism, it just seems to go with the territory.

I feel there is a big advantage to be gained if you remain a participant of this forum as we can then voice our views on the various features offered and know that 'someone is listening'.

I have mentioned your organisation on a number of occasions as I feel it offers real value for money, particularly the trailing cap feature. As with this feature your organisation offers something that the others don't.

I am actually a client of IS and have experimented with the system to record my portfolio. Unfortunately the reports available did not meet my needs as when printing the portfolio it does not consolidate each companies shares. Basically I need both a report showing each purchase and sale and another which just summarises with one entry per company.

Cheers

 

HI Handyandy,

Thanks. I have also gone back and put better disclosure of who I am in all my other posts.

I understand that there will be good and bad criticism. And to be honest the bad stuff is more whorthwhile because we then have something to improve. Though don't get me wrong, the good criticism confirms we are on the right track.

I will have a look into the My Portfolio reporting.

cheers