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Request comment on Managed Fund Portfolio

Discussion in 'Managed Funds & Index Funds' started by coopranos, 6th Dec, 2007.

  1. coopranos

    coopranos Well-Known Member

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    Gday folks
    I am working on putting together a portfolio mix that is reasonably diversified and has some good longer term performers in it as well.
    Any comments on any of the funds would be greatly appreciated (ie why it is good, why it is bad, why you wouldnt use it etc).
    Cheers!
    Merrill Lynch Growth Fund (50%)
    Merrill Lynch International Small Cap (Hedged) (10%)
    Colonial First State Global Resources Fund(10%)
    Challenger China Share Fund(10%)
    Macquarie Small Companies Growth Fund(10%)
    Colonial First State Future Leaders Fund(10%)
     
  2. The Stig

    The Stig Well-Known Member

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    You have a good mix that includes commodities & emerging markets (China). Any blue chip type funds in there? Maybe that is the ML Growth Fund??

    You have 3 funds that have small companies in it. I would only have one.

    I would also have a geared fund in there and a property fund.

    Have a look at the Freemax Fox Maximiser fund Freeman Fox: About Maximiser+ . It have some very good funds in there I like. If you watch the video and take notes, you will see Peter Span mention all the funds. I am not recommending the Maximiser fund, but just pointing out what is inside that fund for ideas.

    Hope that helps.

    PS: But do your homework on the fees and past performance.
     
  3. bundy1964

    bundy1964 Well-Known Member

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  4. coopranos

    coopranos Well-Known Member

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    Im not a massive fan of gurus that give specific investment advice on which they are collecting a nice little premium.
    They are collecting a sweet 3.3% contribution fee plus another management fee on top of that of the underlying managers, plus about a 2%+ premium on the interest rate. that is up to 6-7% in the first year, and a premium of 3-4% each year after that (that is on top of the fee charged by the underlying asset managers)!!
    All this at absolutely ZERO risk to them! They could easily add absolutely no value over the underlying funds and still make a pretty penny on other peoples money!
     
  5. The Stig

    The Stig Well-Known Member

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    It has some benefits to some people. But I would rather have the 11 individual funds myself.
     
  6. crc_error

    crc_error The Rule of 72

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    this is a silly way to reason.. your telling me any professional who is offering paid advise should be discounted cause there it no risk to them and only you the client? does that mean you don't take the advise of your doctor, accountant, lawyer or even mechanic?

    quality advise is worth the money spent... you as the consumer need to decide if value is been offered.. I'm not saying this product is value, thats for you to decide.

    If you don't like the maximizer fees, then it might be better for you to become a member and pay for a plan to be drawn up specifically for you.. then they will invest directly into the funds on your behalf. and just collect the internal managed fund fee which you will pay regardless.

    Most Joe publics are not confident in making proper investing decisions, and nor should they.. its their life savings we are talking about.. something not to be taken lightly.

    the maximizer product is suitable for those who don't want to sit down and do a plan and spend upwards of $5000 to do so as normal planners can charge.. its good for someone with a small amount of money who wants to know a quality manager is looking after their money when they arn't interested in spending much time deciding on what to do with their money.. it also offers a small regular contribution point which is great for dollar cost averaging and regular contribution..
     
  7. crc_error

    crc_error The Rule of 72

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    if you rather manage your money yourself.. thats fine.. but the average joe public would sleep better at night knowing a 'professional' is managing their hard earned money.. this is who this fund is targeted at..

    a easy simple no fuss set and forget package.. having the 11 funds yourself will require YOU to reguarly review your portifilo mix and make adjustments as market conditions unfold.. if your happy to set and forget and not re-adjust, then thats fine..

    My portifilo personally is set and forget.. I don't move in and out of funds, like say sim does.. I hold through bad times.. ie like local and global property is at present
     
  8. DaveA

    DaveA Well-Known Member

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    is this site for average joe publics???

    Id imagine most of the averages would be sitting in front of the tv rather than here....
     
  9. coopranos

    coopranos Well-Known Member

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    No, I said gurus, not professionals.
    These gurus put themselves in a position of being "educators" and "wealth coaches" and then procede to abuse that position by spruiking overpriced products.
     
  10. samaka

    samaka Well-Known Member

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    This is why I think the best financial planners are those who know what they are doing AND only charge you a flat fee - not commission.
     
  11. The Stig

    The Stig Well-Known Member

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    So what mutual funds have no entry fees and no trailing commissions?
    (seeing as this is a thread about mutual funds)
     
  12. Daksar

    Daksar Member

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    This isn't the TV? :D
     
  13. Glebe

    Glebe Well-Known Member

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    Coopranos,

    This could be an alternative to your Challenger China Fund, at lower cost:

    iShares ETFs for Australian Investors

    I haven't looked into the Challenger China Fund specifically though. I recall AMP also has a fund with a licence to buy into China A shares.
     
  14. AsxBroker

    AsxBroker Well-Known Member

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    Hi Samaka,

    Alot of client's don't like writing cheques (they don't feel it if it comes out of their fund as the money is already there) and also flat fees can be less tax effective as it is taken from after tax money whereas superannuation monies is taxed at a lesser rate than most peoples Marginal Tax Rate.

    The advisers who charge a flat fee are those who I would consider Coopranos be talking about
    At least for advisers who are giving ongoing advice their remuneration is linked to your investment success, if you make a killing on the market their remuneration (in dollar terms) is increased, if the market drops their remuneration drops.

    For those advisers who charge purely fee for service they don't care if you come back or not, it's very transactional. I think building an ongoing relationship with clients is a better way of doing things.

    Maybe an annual fixed dollar retainer amount is a better way of doing things? Who knows...

    Glebe is talking about AMP China Growth fund (AGF.ASX).

    Cheers,

    Dan