Managed Funds Vanguard

Yes, this has been a great example of active management done properly.

 

They have a very good dividend growth fund as well.

In Oz Vanguard is know for its indexing, but they also have a large suite of active funds which are cheap. When you are only charging 0.3-0.4% the fee drag on active strategies is significantly reduced, allowing outperformance....as we all know from ASX LICs

 

Vanguard - Vanguard Wellington Fund Investor Shares
Fee = 0.26%.

And here MER = 0.18%
Vanguard - Vanguard Wellington Fund Admiral Shares

I've lost count over the years of the number of investors I've read about in the US who invested in nothing else but the Wellington fund. Very successful fund.

I think the active fund management industry in Australia is in for an even greater shake-up in the coming years. Investors are wising up.

Will be interesting to see the impact on local Listed Mgrs like Perpetual.

 

Vanguard Investments Australia took out top billing at Morningstar Australia's Fund Manager of the Year Awards, which were held in Sydney on Friday night. 06 Mar 2017

 

Just a reminder for those interested in the Vanguard "wholesale" funds (the easiest set and forget way to invest) that $100k will get you access NOT $500k as advertised.

And from what I understand ongoing contributions as low as $1k are accepted by BPay NOT $5K as per their doco.

Saw this on another forum:

 

Given where you just read that and where you have been posting today. How sick are you?

 

what about portfolio churn/turnover per year in regards to capital gains for these vanguard funds? are they negligible or substantial?

 

Depends which one specifically as there are "value" and "growth" funds. Most are cap weighted index which pretty much takes care (eliminate) of turnover by default.

 

LOL.

Cheeky bugger.

Stinking hot outside so mostly indoors today. So I've been spying on the dark side (Bogleheads) in an attempt to find their weaknesses. Us dividend investors will need all the ammunition we can find to counter the growing threat of Boglehead world domination. But fortunately us dividend investors are confident that the force is with us.

DIVIDEND INVESTORS ANONYMOUS:


VS

BOGLEHEADS:

 

Is the "wholesale" that much better? (for a given concept of "better" )

 

Yes.

 

I wish to diversify outside of Australia with Vanguard international index. Do you recommend the wholesale managed index fund as an easy set and forget?

 

I can't recommend anything. But for those prone to fiddling with their portfolio, procrastinating, needlessly watching the market, who want to automate the dollar cost averaging process (periodic BPay) and have better things to do than fret over the sharemarket then traditional wholesale managed funds are an excellent option. Set and forget then get on with your life.

 

No recommendation but personally i would be very happy to use as a core holding for an unlisted portfolio.

 

Roger is getting worried. A wonderful example of nervous thrashing around and talking ones book ;
https://rogermontgomery.com/content/uploads/2016/10/Australian_20161022_035_0.pdf

Here's why ;

The Montgomery Fund S&P 300 Accum. Index Out/Under Performance
1 month 0.39%
3 months -0.58%
6 months -8.61%
12 months -13.22%
2 years -1.55%
3 years 0.74%

He's struggling.

Bloody index I can't keep up with!!!! Bloody dummies give me your money!!!!

 

The issue I have found with Roger is a lot of his picks for companies for investments don't seem to have moats around it or they are fairly new and don't have a long profitable history.

This is where I see some of his picks turn against him and companies that were rated A+ just few months ago are now down 30%-40% and are no longer investment grade impacting his performance.

He keeps preaching about Buffett style investing but his own investing does not look Buffett style at all.

Any idea how much fees does he charge?

Cheers,
Oracle.

 

I listen to Roger often on Ross Greenwood's radio show on 2GB (Money News) and he often speaks about companies that have the ability to grow; not just pay out high dividends. His favourite example is Telstra and how the share price has gone nowhere for the last 10 years or so. He also harps on about how Australian's in the superannuation pension phase love dividends and their dollars chase companies like TLS. His CEO David Buckland (on the same radio show) has in the past indicated that purchasing for dividends is not what creates wealth.

Roger has often mentioned that he likes stocks such as isentia. REA group (says a house price crash will actually benefit them due to longer time the ad stays on the site), Healthscope etc.

Not critiquing any of the above and certainly not advice. Just adding to the discussion.

 

Roger is a good salesman and says a lot of good stuff.

 

1.35% MER + 15% performance fee.