Managed Funds Managed Fund suggestions ?

Thats the next step for me.

Just have to wait (patiently !) for the broker to organise some refinance so I can convert some 'trapped' equity from property into managed funds, then leverage from there with a margin lender.

Appreciate the tips on the various funds.

Thanks Sim for starting the thread.

Kevin

 

Hi Kevin,
Have a read of the John Bogle book - Common Sense on Mutual Funds before you invest into managed funds. The book is a relatively easy read and very well recommended. He is a big fan of Index-type funds (considering that he started Vanguard it makes sense). It will show you what tax inefficiency and costs do to your long term returns...

 

Just curious Mr Darcy, are you referring to HFA's investment plan for the fund or the illiquidity of the fund?

 

The big advantage of the Octane fund's approach as I see it is you get the tax deduction
for the interest payments each year, then when the product matures you will get taxed
at CGT rates (i.e. half your marginal rate) instead of being taxed on income each year.

andy

 

Just the illiquidity, not quite right for me at this time.

 

That's why I invest in property ! And you also get depreciation... and an income !

Of couse property does not have 100% finance (without mega fees) and capital protection.

 

Hi mate,
The problem is...whats the alternative ??
I won't buy direct shares, so apart from currently being 100% property, and in the process of balancing that out a bit over to some equities...what does one do ?
The property might be great for capital preservation, and leveraging, and drawing down equity, but I need to generate more cashflow, and hence balance this lopsided portfolio.

Unfortunately, prior to June 30 is an opportune time to prepay some interest and time is running out to do this. I have quite a bit of profit from property sales that I can reduce by doing this now.

Kevin

 

Hi Kevin, I'm not saying don't invest in managed funds - to the contrary. The book gives some very good insights into the different types of funds and how they behave in relation to costs and tax and what impact this has on long term returns.
What matters is the after-tax and after-costs returns.

 

Mr Darcy,

What are the best LVR's and best rates you have found for Platinum?

Cheers

Brad

 

I thought one of the funds Peter Spann presented showed some promise.
The Macqurie Property Income Fund looked ok. Returning some 15% distributions (which are also nicely tax effective) for the last 3 years.
BT do a 60% margin lend on it.
It has good liquidity (same day if needed) rather than waiting 6 or 7 years like some others.

 

Sounds interesting. Are the distribs annual, semi-annual or quarterly?

 

Not sure about the best LVRs but I'm just about to buy through suncorp who have a special of 1 year fixed interest in advance at 7.15%. LVR for Platinum Asia is 70% and Japan 65%.

 

Managed Fund Discussion

Hi Sim,
Appreciate the regeneration on this topic. We are like the proverbial 'babes in the woods' when it comes to which fund/s to diversify into outside Navra Retail which we know and are comfortable with (not 'warm n fuzzy' with Navra US fund at the moment). Certainly a variety of opinion and a wealth of discussion which is fantastic.
Cheers
Pudsa

 

Quarterly.
Apparently though its heavily weighted after the June quarter - some 8 or 9% comes in July, and the rest of the year does the other 6 or 7 % according to what Peter (or was it the Mac bank guy?) said.

 

Perky

I thought the Macquarie fund promoted by Freeman fox has annual distributions (within 10 days after the end of the financial year). In fact this is one of the drawbacks ie you have to come up with 2 interest payments before you receive you first distribution. The Macquarie Multi Strategy fund is the same.

Gazza

 

Hey Gazza

I think Perky is talking about the the Macquarie Property Income Fund. The distributions for that fund are quarterly with about 50% of total income at June.

As far as LPTs go, it seems to have done well in the past 2 years. Not long in the scheme of things, but past performance must count for something (regardless of what they're told to say).

 

Has anyone got a link to this particular fund ??

Kevin

 

No worries, thanks -T- and apologies Perky

 

Try this

MPIF

 

Thnak you.....