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Discussion in 'Managed Funds & Index Funds' started by gregpatch, 11th Nov, 2005.

  1. gregpatch

    gregpatch Member

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    Any news on when units in the Navra Dow Fund will become available for purchase? My anxiety levels are becoming noticeable. :confused: :p
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    They've always been talking about early next year, so I'd wait for more details around Christmas time perhaps.
     
  3. gregpatch

    gregpatch Member

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    Thanks Sim- so it's a matter of converting anxiety into patience (which is not a bad thing!) :eek:
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Anxiety is never a good thing. Impatience is not quite so bad, but if you are truely getting anxious about these things then I think you need to seek some professional help !! :eek: (and I meant that seriously and not sarcastically ... high anxiety levels are bad for you).

    If you are just impatient, then that's fine - join the queue :p
     
  5. Glebe

    Glebe Well-Known Member

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    Do you guys expect a higher return from the forthcoming Dow fund or are you just looking at diversifying?

    For those that predict higher returns, I know Steve has mentioned there is more movement in the Dow, which should assist Dollar Cost Trading, but I'm not sure if this more than offsets the lack of franking credits.

    Your thoughts welcome...
     
  6. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Glebe,

    For me it's more about diversification, but I do also believe the returns will be higher. I plan to split my money 50/50 between the two.

    Note: this is a personal preference!

    Mark
     
  7. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    We don't get much in the way of franking credits from the Australian funds anyway, since the funds generally don't hold shares long enough to get access to them. I think there's some rule about 45 days or something.

    I think it will be currency risks that are going to have a bigger effect on the US funds.

    I would hope the Dow fund will perform better overall because of the higher volatility.

    From the NavraInvest website:
    http://www.navrainvest.com.au/index.asp?content=faq

     
  8. Alan

    Alan Well-Known Member

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    I guess the other issue beyond franking credits is the actual dividends paid.

    I would have thought the Australian Fund could achieve at least about 3%pa(?) from nice safe regular dividends. Presumably the US Fund would be a bit less.

    However the increased volatility may more than make up for this. How much more I wonder?

    Anyone know what the average Dividend Yield is on the Dow?
     
  9. Glebe

    Glebe Well-Known Member

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    Alan,

    I believe the dividend yield is lower from American stocks. We have had historically lower PE ratio's than the Americans.
     
  10. Alan

    Alan Well-Known Member

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    Hi Glebe.

    Yes.......I guess this is what I'm saying.......

    If say the Australian Fund gets 3% from Dividends and the US Fund gets 1% in Dividends then the US Fund may start relatively down 2%. If however the trading profits are larger than 2%(which is the impression given due to the increased volatilty) then this may be of little consequence.

    I guess it depends on what the difference in trading profit is expected to be from the US Fund compared to the Australian Fund?

    If the performance of the US Fund should inherently be better than the Australian Fund based on the criticality of the volatilty factor, I guess you would then ask yourself why you would stay in the Australian Fund instead of going fully into the US Fund? 'Diversification/Risk Minimisation' would be the only reason that immediately comes to mind.
     
  11. Glebe

    Glebe Well-Known Member

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    Yep exactly right Alan.