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Master trusts - anyone use them?

Discussion in 'Managed Funds & Index Funds' started by transit, 18th Apr, 2006.

  1. transit

    transit Well-Known Member

    1st Jan, 2006
    Hiya, does anyone here use master trusts to invest in managed funds?

    As i understand it, the benefit of a master trust is that you can access wholesale funds which have lower ongoing fees and also switch around between the sub trusts with minimal cost and paperwork.

    Or is it better to invest directly in a MF if you intend to have your $ in that particular fund for a certain period of time?
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    9th Jun, 2005
    Sydney, Australia
    Although it does depend on what you intend to invest in, I found that the savings in fees you gain by investing in wholesale funds through master trusts were largely eroded by the extra fees you pay for the master trust itself.

    Perhaps it varies enough that there are some funds worth investing in through this platform (I only looked a while ago, and have not really looked since)... and it probably is worthwhile if you can't meet the minimum investment requirement of the wholesale fund you are interested in (and there is no equivalent retail fund).
  3. Glebe

    Glebe Well-Known Member

    15th Aug, 2005
    Sydney, NSW
    Yeah in my limited experience I found the wrapping fees were higher than the difference between the wholesale and retail management costs of the funds. But you do get consolidated billing, but it often takes until late August each year to get them.