My portfolio. Does this look ok?

Discussion in 'Share Investing Strategies, Theories & Education' started by Frank Manno, 22nd Aug, 2017.

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  1. Frank Manno

    Frank Manno Well-Known Member

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    Hi Ross,

    I didn't realise at the time I posted the original post but those few shares were just to get a starting position in the market. As more money comes in the funds are suppose to be allocated more like this..

    Would you say this looks a bit better balanced?


    -Frank


    Cash Funds
    Cash Account $15,000 (1.07%)

    Fixed Interest / Bonds Funds
    6 Month Term Deposit $50,000 (3.57%)

    Defensive Alternatives / Enhanced Yield Funds
    Kapstream Absolute Return Income Fund $50,000 (3.57%)
    PIMCO Diversified Fixed Interest Fund $50,000 (3.57%)
    PM Capital Enhanced Yield Funds $50,000 (3.57%)

    Property Funds ETF
    Vanguard Wholesale Property Securities Fund (VAP) $50,000 (3.57%)

    Direct Australian Shares + ETF
    Commonwealth Bank $50,000 (3.57%)
    BHP Billiton (BHP) Shares $40,000 (2.86%)
    CSL Limited (CSL) Shares $40,000 (2.86%)
    Amcor (AMC) Shares $30,000 (2.14%)
    Macquarie Bank (MQG) Shares $45,000 (3.21%)
    Perpetual (PPT) Shares $40,000 (2.86%)
    National Australia Bank $40,000 (2.86%)
    Ramsay Health Care (RHC) Shares $40,000 (2.86%)
    Wilson Asset Management (WAM) Shares $55,000 (3.93%)
    Wesfarmers (WES) Shares $20,000 (1.43%)
    Fortescue Metals Group (FMG) Shares $25,000 (1.79%)
    Tabcorp (TAH) Shares $30,000 (2.14%)
    Vanguard Australian Share (VAS) ETF $50,000 (3.57%)
    Vanguard Total US ETF $100,000 (7.14%)
    Vanguard MSCI Index International Share (VGS) $100,000 (7.14%)

    Australian Equity Fund - SMA
    Antares Dividend Builder $230,000 (16.43%)

    International Equities + Managed Funds
    Magellan Global Fund (MGE) $100,000 (7.14%)
    Platinum International Fund $100,000 (7.14%)

    TOTAL $1,400000 (100%)
     
  2. 158

    158 Well-Known Member

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    Only thing I see missing here is TKS.


    pinkboy......The Kitchen Sink
     
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  3. The Falcon

    The Falcon Well-Known Member

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    The bloke obviously considers himself a stock picker, bit of this, bit of that....hope he's a bloody good one for your sake.

    Your defensives aren't defensive and some of the inclusions are baffling (3% weight to VAS? holding both VTS and VGS shows he doesn't know what the ETFs are holding)

    Wouldn't be happy entrusting my nest egg to this bloke imho.
     
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  4. Frank Manno

    Frank Manno Well-Known Member

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    Apparently, the idea of this is about holding the hedged and non hedged version of the fund so that if our dollar goes up or down I'm covered each way.



    -Frank
     
  5. Ross Forrester

    Ross Forrester Well-Known Member

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    How much will that cost to buy and hold each year - and that includes direct costs and indirect costs.

    It seems very diversified with lots and lots of different people managing different parts of your money in lots of different ways. Let's hope they do not cancel each other out with their different styles.

    Just watch out for costs. These things can fund somebody else's retirement and not you.

    However it looks like you have engaged a financial product advisor for financial product advice.
     
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  6. Kat

    Kat Well-Known Member

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    When I read that list of assets my initial response was "the advisor is trying to justify his fees/retain business by adding an unnecessary level of complexity".

    I know you're already looking at this, but I'd like to reiterate that a good option would be to use LICs for Australian shares, and Vanguard wholesale for anything else.
     
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  7. The Falcon

    The Falcon Well-Known Member

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    Yep, that's the model Kat. Baffle and bamboozle em so they can't leave.
     
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  8. Nodrog

    Nodrog Well-Known Member

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    Frank unless the stock codes are incorrect those are both "unhedged" ETFs.

    The recommended portfolio seems like overkill but the funds recommended are all considered good Mgrs. Overall the allocation is Cash / Fixed Interest / Defensives 15%, Australia 55%, International 30%.

    It's not what most of us here would do but given the advisor's likely to be using a platform offering consolidated reporting this type of portfolio with many holdings is quite common. I dare say you will be hit with a sizable fee for this. I don't recall you mentioning what the fee structure is? I agree with others in that he / she is keen to lock you in.

    I'm not liscenced to advise but I think a dramatically simplified portfolio could achieve a similar / better result for a much much lower fee. For example a very low fee Industry Super fund combined with some cash / term Deposits and one or two simple Share funds in your own name would likely do the job. I expect the saving on fees would be substantial.

    Of much greater importance is the split of investments in own name vs Superannuation. Otherwise the tax outcome could be far from ideal. Get that right first before even thinking about what funds / shares etc to buy!

    And finally seeing a couple of advisors before selecting one might be worthwhile.
     
    Last edited: 30th Aug, 2017
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  9. Ross Forrester

    Ross Forrester Well-Known Member

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    That was what I was trying to say! But you did it so much better....
     
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  10. Frank Manno

    Frank Manno Well-Known Member

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    Fee is basically 1% of the capital invested for the advisor and then whatever the fund managers fees are ono top of that.

    Lock me in? How do you mean lock me in?

    Do you mean that once I buy all that it's too hard to pull all my money out of stock market because of the complexity of the structure and where it will currently sit at the time?

    Or do you mean lock me in so it makes it hard for me to change advisors?


    -Frank
     
    Last edited: 30th Aug, 2017
  11. Redwing

    Redwing Well-Known Member

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    I'm with @pinkboy

    Where's the Kitchen Sink :D Its like a Shotgun Portfolio, where you throw that much lead (or cash) your bound to hit something
     

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  12. Anne11

    Anne11 Well-Known Member

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    The fee is high then comparing to the passive investing path. It is worth seeing other advisors before committing the funds.
     
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  13. Nodrog

    Nodrog Well-Known Member

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    Harder to switch advisors probably more psychologically than anything but it depends on the structure.

    So you're paying your advisor $14,000 pa even before fund Mgr fees. You wanted from memory around $85k pa income from your investments. Your advisor has just reduced your income to $71k pa! Does that make you happy?

    If you want to go the advisor path choose a fee for service advisor not one that charges you a percentage of your assets.
     
  14. Frank Manno

    Frank Manno Well-Known Member

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    I'm reading this correct from my current advisor right?

    "The ongoing advice fee is based on a percentage scale according to the total value of your
    funds under management and will vary as the value of the underlying investments change
    over time. The scale is 1.10% pa including GST on the first $1,000,000 of funds under
    management and 0.33% pa above $1,000,000."

    Just spoke to Commsec.. They charge 1% per -trade- if I want them to manage stuff for me. Huge difference.

    Or my other option with Commsec is do everything myself and if I need advice on balancing my portfolio there is a one off advice fee of $500-$1000. They look at a portfolio and suggest what needs to be done on a on off basis each time..


    -Frank
     
  15. Swuzz

    Swuzz Well-Known Member

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    Hi Guys - 1st post :)
    About to set up a share portfolio for my (elderly) mum with the proceeds of her recent IP sale
    Aim is dividend income to replace the nett rental she's largely been living off in recent years
    Looking for a balance of current 'blue chip' payers with 'div growers' for the future

    nb: Found this forum whilst reading up on 'asx dividend aristorcrats'
    This thread caught my eye and I note some similarity of my draft portfolio to Frank's, above
    I'm probably underweight in LIC/ETF against the groupthink here but frankly I'm underwhelmed by the yield of most LIC - even the so-called dividend focused ones - I guess they're really about making capital gains from well-performing div payers?

    Here it is. Interested in your comments
    %
    7 NAB NAB
    7 TLS Telstra
    7 MQG Macquarie Group Limited
    7 FMG Fortescue
    7 BOQ BANK OF QUEENSLAND
    6 RIO RIO TINTO
    5 CSL CSL
    5 TCL Transurban
    5 RHC RAMSAY HEALTH CARE
    5 APA APA GROUP
    5 TPM TPG TELECOM
    5 SOL WH SOUL PATTINSON
    6 DJW Djerriwarrh
    6 WAM Wam Capital
    6 DIVW SPDR S&P Global Div Fund
    3 WAX WAM Research
    3 GMA Genworth Mortgage Ins
    3 APE A.P. EAGERS LIMITED
    2 GEM G8 Education
    100
     
  16. Kat

    Kat Well-Known Member

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    I believe you'd be better off using LICs or ETFs. It will save you the hassle of rebalancing the portfolio, and significantly reduce your brokerage costs.

    If you haven't already, I think you'd benefit from reading the Beginner's Guide to LICs. A search of this forum should point you in the direction of the most recent copy.
     
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  17. Chris Au

    Chris Au Well-Known Member

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  18. pwnitat0r

    pwnitat0r Well-Known Member

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    Looking at some of these hypothetical portfolios pains me...

    Here's the million dollar question I'd be asking before I hand my money over to anyone, WHAT IS YOUR TRACK RECORD?

    If a person does not have a track record of out performing the market, WHY THE HELL WOULD YOU PAY THEM TO MANAGE YOUR MONEY!?! Just buy an index fund and be done with it. All those shares listed are in the asx 300 and the chances are after fees you will lag the index and come out worse off with management fees and transaction costs..

    Why would anyone pay monkeys to manage their money when you have have guys that have a track record such as EGP that have thumped the market?

    Performance - EGP Capital

    Disclaimer: I have money invested in EGP
     
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  19. pwnitat0r

    pwnitat0r Well-Known Member

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    And this post/speech by Tony Hansen is undoubtedly one of the best speeches I have heard. Hearing this speech was the catalyst for me to get my partner's super into my SMSF which has since been invested with EGP.


    Update No. 292 – 31/03/17 - EGP Capital
     
  20. Frank Manno

    Frank Manno Well-Known Member

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    Is it really that simple? Honestly? If it's that simple then yes this is what I would prefer.. Exactly what you just said.

    I would rather just sit there with my own trading account and buy an Index or 2 and never look at it again. (you know what I mean)

    Excuse this obviously naive question.

    What is the difference between buying an index fund, or hiring a financial advisor to buy a bunch of shares for you and then re balance those shares yearly?

    Does the fund manager of an index simply do exactly what a financial advisor is doing with a portfolio but within the one fund?



    -Frank