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OM-IP 2Eclipse Limited

Discussion in 'Managed Funds & Index Funds' started by CLK, 21st Feb, 2007.

  1. CLK

    CLK Member

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    Has anyone come across OM-IP 2Eclipse Limited?
    Shares at $1 each and min investment $5,000 guaranteed by CBA.
    Time frame: about 8 years

    Any comments/feedback will be appreciated.

    Jas
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Why would you want to invest there ? (serious question ... wondering why you are considering them - what is it about the investment that attracts you ?)
     
  3. Sads

    Sads Member

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    I am not saying you should, but why would you not invest there?
    capital guarantee, diversification, potential to gain in rising and falling markets, borrow up to 100% with no margin calls.
    Depends on your overall financial situation and MTR, but i thought it may complement an existing portfolio quite nicely.
     
  4. voigtstr

    voigtstr Well-Known Member

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    just looked through the prospectus this fund, no dividends or income, just growth? From a cash flow perspective, gearing 100% into this fund would be a bit of a drain wouldnt it?

    Whats the benefit of this fund over any of the others you can find listed at investsmart or etrade etc
     
  5. Nigel Ward

    Nigel Ward Team InvestEd

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    Are u prepared to lock your money up for 8 in what's essentially a black box investment system? Whilst redemptions are permitted early, no capital guarantee applies typically if you redeem early.

    just some thoughts. Of course you should read the PDS very carefully and take appropriate financial advice.

    cheers
    N.
     
  6. unthreaded

    unthreaded Active Member

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    Check their other funds

    I invested in OM-IP 15seven based on the capital guarantee and projected 15%pa return over 7 years. Results have not been anywhere near the projections in the PDS.

    I have just received the managers report to 30-sept-2006. The fund produced an increase in Net Asset Value per Share of 0.35% over the preceding 12 Months.

    OK any fund can have a bad year, but if you look through the Financial statements for the past 12 months you will find a $3.4 Million increase in value attributable to share holders after a $3.9 Million expense for INCENTIVE FEES (which goes to MAN Investments, this is a fee for their stunning performance) - on top of consultancy fees, brokerage and management fees all to Man Investments.

    Check their web site to see how the funds established over the past 3-4 years have performed, download some of their annual reports and then make your decision.
     
  7. Sads

    Sads Member

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  8. Redwing

    Redwing Well-Known Member

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    OM IP2Eclipse came across my desk yesterday as well as a work mate showed me a couple of funds he's looking at

    From memory (and some scriblings) you could lend 100% from Adelaide Bank at around 9% or apply to MacBank for a Geared Investment Plan (borrowing 100% plus additional for put options) and the fund also had some sort of rising guarantee?

    I also had a look at a commercial office fund with income returns of around 8.2% (paid per 1/4) and 100% tax sheltering for at least two years (ummm from memory made it around 15% equivalent pre-tax yield)..however,you also only had the opportunity to withdraw once every six months

    Also looked at the MacQuarie Direct Property fund (7.46% for DEC 1/4 or 2.025 cents and 28.96% for the year).

    Throw into that some of the great funds discussed in previous posts here on the Forum and I either have analysis paralysis or I'm just totally confused as to what to do next..:confused: :confused:
     
  9. coopranos

    coopranos Well-Known Member

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    Gday Redwing

    Mate it sure is a jungle out there as far as what to choose.
    The first thing I think you should do is really have a firm strategy about what type of funds you want to invest in - what is your purpose: to fund other cashflow hungry investments? to achieve long term growth? to optimize your tax situation?
    Once you have decided on this, you will have a clearer idea on what you want to do. And once you have decided, stick with your decision - keep your eye out for a better strategy but back your own strategy until then. Once you have you strategy, are confident you have dont your research on that investment and are reasonably confident on getting a result, then go for it!

    On a personal note, I have seen a lot of high net worth people with money in the Mann Investments (OM-IP stuff). I dont know why it is, but 9 times out of 10 they will have an OM-IP investment of some kind sitting in the kitty, be it in a super fund or in their own name. I certainly am not recommending it, but have always found it interesting. It may be because OM-IP gives good commission to planners, I dont know. They SEEM to be a reasonable conservative investment with the rising capital guarantee backed by one of the banks. They also are never the top performing asset in the kitty.
     
  10. unthreaded

    unthreaded Active Member

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    This is the performance of their funds to date.

    Man Investments Australia

    Some great, some not so hot. The rising capital guarantee has not been seen for some funds, even though it should have been activated according to PDS and annual reports. If any one has any explanation of why this maybe so, I would appreciate their input.

    As for commissions, I believe if you go through an FP they receive a 5% upfront commission. If you utilize intermediaries such as fundbroker or investsmart, the commission is rebated as a cash payment to you - (so you get a guaranteed 5% return straight up!)
     
  11. unthreaded

    unthreaded Active Member

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    Download the PDS for their latest fund, or the investor summary. The example scenario is always based on the original OM-IP 220 Ltd. Virtually all funds utilize the same investment system.

    The historical returns (based on OM-IP 220) are reasonable, quadrupling in 10 years - although not exactly stunning. But when you add to this a rising capital guarantee, backed by NAB or CBA, it looks a pretty solid investment.

    The time frame of the funds is typically 7+ years, so poor performance in the early years needs to take this into account. The investment strategies of the funds are typically best in volatile markets - perhaps reflected in their performance 2003 -2007. It will be interesting to see their returns over the current and following quarters.

    The figures following are probably the worst results ( first number is rising guarantee, second current unit price). BUT one should remember these are investments with a time frame of 7+ years.

    That said, I'm glad i'm not in OM-IP 220 Series 11


    Series 9 OM-IP 220 Ltd
    AUD Oct 03 28 Feb 07 $1.0614 $1.1742
    Series 10 OM-IP 220 Ltd
    AUD May 05 28 Feb 07 $1.1031 $1.1805
    Series 11 OM-IP 220 Ltd
    AUD Apr 06 28 Feb 07 $1.0000 $0.9124
     
  12. JP

    JP New Member

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    Not TOO shabby

    Man Series 9 OM-IP 220 Ltd
    AUD Oct 03 31 Aug 08 $1.1656 $1.4485
    Man Series 10 OM-IP 220 Ltd
    AUD May 05 31 Aug 08 $1.2155 $1.4362
    Man Series 11 OM-IP 220 Ltd
    AUD Apr 06 31 Aug 08 $1.0105 $1.0922

    Indeed useful in volatile markets: Series 11 grew ~20% since Feb last year, maybe if you'd timed the market and gotten into cash in time you could have beaten that ?
     
  13. Jess

    Jess Member

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    New OM-IP Product

    Hi

    Just thought I'd let you all know, that if you're interested in the OM-IP/Man Investments funds, they now have a new fund out called OM-IP 220 2008, you can have a look on our/InvestSMART website: Man OM-IP 220 2008 - Latest Investment Opportunities - Offer Overview

    If anyone has any questions please let me know.

    Cheers
    Jess - InvestSMART
     
  14. AsxBroker

    AsxBroker Well-Known Member

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    Hi Jess,

    Looks like the nice table you have on the returns is out of date and also only shows the positive funds. The full 31 fund returns are here:

    Man Investments Australia

    Something must've gone a bit awry with series 12 as the return on the InvestSmart page says 12% return since inception until June 2008 (Man OM-IP 220 2008 - Latest Investment Opportunities - Offer Overview) whereas the OM-IP webpage says it's unit value is $0.9803 which indicates a small negative return of around -2% since inception until as at 31 August 2008.

    Statistics are wonderful things...

    Cheers,

    Dan

    PS Past performance is no guarantee of future returns. Before making an investment decision speak to your FPA registered Financial Planner.
     
  15. Jess

    Jess Member

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    Dear AsxBroker

    If you have a look in the OM-IP 220 2008 Prospectus you will see that the table we have on our website is an extract. At the time of the Prospectus being written, the figures would have matched the market and fund performance for that period.

    Yours sincerely

    Jess - InvestSMART
     
  16. AsxBroker

    AsxBroker Well-Known Member

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    Hi Jess,

    The main point that I was trying to get across was that one of the funds had dropped approx 14% in 2 months.

    Cheers,

    Dan