Managed Funds rate this fund

vihyf - Vanguard Investments Australia Ltd

looks interesting to me because of the monthly distributions, which I reckon would be good from a cashflow perspective.

Is the fund too new? (no track record except for the companies other funds?)

Are there any other funds out there with monthly distributions that you know of?

 

I did look at it and liked what I saw, only downside for me was that investsmart and directaccess didn't carry a prospectus for the fund which etrade does if you dont mind no margin loan to do it.

Others include InvestSMART.com.au - Fund Details and InvestSMART.com.au - Fund Details

I do use the AMP one to help fund margin interest payments.

 

Vanguard has a pretty good name..though looking at so many funds, fee's etc is doing my head in of late ...

Spoke to a Financial Planner re a SMSF and someFunds and Decided I'm better with looking for Funds myself ..SMSF set-up is a different matter though

$650 to set up and $1500 p/a for audit and compliance paperwork

 

I love Vangard because their costs are so low. There is little churn so the after tax returns are great.

 

it looks like investsmart has it on their list, with a lvr of 65%
InvestSMART.com.au - Fund Details

I would most likely invest 5k, top it up each month with spare cash via bpay (additional bpay investments as small as $100) When it gets to 20k get a margin loan for 20k and I'd be sitting safely on 50% LVR

I'll check the links provided to the other funds now.

Cheers
Simon (yes another one)
the voigtstr

 

InvestSMART.com.au - Fund Details looked like a good one too, minimum investment of 0$ and tops ups of 500 is handy for budgeting as well

 

That sounds like a good plan mate!

Simon

 

I would have a look at the monthly payout as well for the Vangaurd fund.

CPU History - Vanguard Investments Australia Ltd

They do miss a few payouts every now and then so a safety margin is needed if your using other peoples money and your budget is tight or if your budget is tight anyway.

 

An honest question: is there any reason you wouldn't want to follow the same strategy yourself with direct shares?

The reason I ask is that their goal is indirectly to underperform against the index (match the index less fees). Additionally, it appears they're using the price index as their benchmark rather than the accumulation index (including dividends), so if that's the case then that's ridiculous. Lastly, it's called the High Yield fund yet it is only trying to return +1% against the index and it excludes the best yielding securities; LPTs.

I'm not trying to be negative for the sake of it. As soon as I saw the title I thought maybe this is an alternative to the Navra fund but with a more intuitive strategy. But after reading it, I think it's an index fund that leaves the best yielding stocks out of its benchmark and ignores total return from the benchmark too.

If you did it by yourself with direct shares, you could:
- get better LVRs
- include LPTs
- save on fees
- possibly outperform the market (the actual market)
- learn something at the same time (or lose all of your money )

For the record, I could be wrong about them not using the accumulation index, but most managers tend to talk it up when they do use a higher performing index.

 

Reading the PDS they also use options to add income which is something that sits beyond my current comfort zone. Also it is fairly hard to hold the spread of stocks that they do cost effectivly.

It is a lazy way to make an income/pay holding costs and you pay for your lazyness with managed fund performance and their fees.