Managed Funds The Vanguard Managed Fund Thread

I’m not sure but I remember Peter Thornhill telling me that having spent most of his life working in the funds management industry this was one of his major gripes. When it comes to fees the Mgr will take their cut from the safe natural income of the underlying assets, ie dividends, leaving the investor with mostly less tax effective capital gains.

 

There is some true wisdom in this. People forget there is more to wealth creation than constantly focussing on absolute return on assets. Risk management as well as self management habits & practices are what really separates the wise from the foolish especially when the pressure is on.

It is also surprising what can be achieved in managed fund space through well thought out portfolio construction - lower beta and higher alpha is a very real likelihood with a well researched approach.

Finally although slightly off topic just want to mention SMA's are another alternative vehicle that have not received the attention they deserve. Combines the convenience of managed arrangement with benefits of direct ownership.

 

Firstly let me point out that I am myself a beginner - Before I found this group I got advice from a few advisors which seem to be very credible. The only thing was that their portfolio structure had a level of complexity which, after reading this forum I realised wasn't necessary so I didn't end up taking their advice and I'm having a break for a while as I learn more about the market and especially LIC's..

But,

Since you mention that you want to invest in managed funds I thought I would just share with you the managed funds that were recommended to me and this is really the purpose of my response to your post.. Since you are a beginner (as am I) I'm just giving you some funds to research and an alternative to Vanguard. Not advice of course and by no means am I recommending the funds below.. I'm just letting you know they exist and that they have been recommended to me as part of a complete portfolio.

Winton Global Alpha Fund MAQ0482AU
Ironbark LHP Diversified Investment Fund HFL0104AU
Macquarie International Infrastructure Securities Fund (H) MAQ0432AU
Standard Life Investments Absolute Return Global Fund Strategies Trust - ETL0134AU
Vanguard Wholesale International Property Securities Index Fund (Hedged) VAN0019AU
Janus Henderson Tactical Income Fund - IOF0145AU
UBS Income Solution Fund - UBS0003AU
Macquarie Income Opportunities Fund - MAQ0277AU
Vanguard W’Sale International Shares Index Fund (Hedged)
MLC Wholesale Global Shares Fund - MLC0261AU
Pimco Global Bond Fund - Wholesale Class ETL0018AU
Magellan Global Fund (MGE001AU)


-Frank

 

As well as Vanguard, State Street also offers indexed multi asset funds. Their passive balanced is a 70/30 growth/fixed income portfolio with a similar asset allocation to Vanguards growth fund. Cost is 26bps which is competitive, but interestingly they have a $25k minimum, which will be very attractive for some. https://www.ssga.com/apac/au/retail...ate-Street-Passive-Balanced-Trust-Retail.html

 

any updates on ppl with vanguards unlisted managed funds and the newly implemented AMIT scheme?

 

Vanguard plans active fund assault

 

All pure evil if you ask me.

 

I'm on the fence with this. If there was a decent momentum-based active ETF that had low costs and was tax effective I would consider it as a potentially uncorrelated "hedge". I'm referring to a Meb Faber style 10 month moving average method. It would be a good SANF addition which typically underperforms in bull markets but outperforms at the start of protracted bear markets. Not always though....

Right now I'm considering doing this manually in super as it is tax efficient that way, but it would be nice to be able to do it outside of that space without triggering capital gains tax everytime.

I also like the idea of simple factor based ETFs for markets like US small caps or emerging markets if the fees are low enough.

 

On the AMIT scheme several people are reporting an AMIT allocation for their Vanguard managed funds in the MMM Australia investing thread: Australian Investing Thread.

As The Falcon hinted, these are to cover capital gains that you did not personally receive a distribution for. It is an adjustment you use on the cost base of your fund so you don't need to pay for other peoples capital gains.

 

Now that we are a few months down the tax rabbit hole, have any PC members done their tax return with their AMIT schedule? Does it balance out with the equivalent ETF ownership now?

 

ETF is the new fashion it getting crowded
Most stock are crowded trade because of ETF

It becomes a bit of a bubble in some ETF
beware when money exit the crowded trades.

I owned some of stocks that ETF force to buy due to index rebalancing driving it to dizzy high so I am cashing some, thank you would have never get this sort of price without ETF mania

Be alert but not alarm and don’t just think ETF is one way ticket to good return with little risk

Let history be a guide when money leaving a crowded trade