Managed Funds Vanguard

$5k for wholesale? Either that's exciting or all the paint fumes have gotten to me.

 

He he. BPay top ups.

 

Seemed strange, I'm tired and easily excitable.

 

So can it be read as setup is $100k+ to "get in", then the first addition is $5k+, then subsequent is $100+?
Perhaps I'm too tired too but are you saying the $100k+ to get in is being dropped?
Don't know why you'd pay the non-wholesale fees if that's right!

 

Yes from what I understand.

 

Anybody heard about the vanguard wholesale crossing day for the fund?

It's a feature where on one day of each month you can buy or sell incurring no buyer or seller spreads/costs I'm led to believe?!?????

 

https://static.vgcontent.info/crp/i...nsto_CrossingDays_jan2017.pdf?20170607|113524

Are these the dates you were referring to @pippen ?

 

Yes they are the ones! Seems like free brokerage doesn't it?

 

Seems strange, given that BPay can take 1-3 days to transfer. You're basically hoping it goes through in time for you to get free brokerage.

 

A Friday transfer can take until the following Thursday, especially when you throw a public holiday into the mix.

 

Vanguard's Curse: New CEOs Arrive Just Before Markets Melt Down

Leadership is changing at Vanguard Group Inc., and if history is any guide investors should watch out.

Each time the $4.4 trillion money manager has named a new chief executive officer, U.S. stocks have found themselves in the throes of temporary destruction. A few years after its legendary founder Jack Bogle stepped down, the technology bubble burst. Shortly after Bill McNabb won the role, the 2008 financial crisis unloaded on the market.

While both crashes were nothing more than unfortunate coincidences that Vanguard survived, the company is once again braced for change after announcing last week that McNabb would hand over the reins to Tim Buckley, the firm’s chief investment officer. While the market doesn’t look particularly bubbly at the moment, there still could be trouble ahead as long as U.S. stocks continue to trade at dangerously rich valuations, McNabb said.

“They’re frothy,’’ McNabb said. “There is a risk that those valuations take the multiples down a few points, and all of sudden you can have a pretty big move in the stock market.’’

 

We transferred across funds in June to wholesale international account. It's dropped about 6% in a month and a half. It's annoying but we are in for the long haul and I might add extra money by end of the year if it goes down even further.

 

Just finished listening to this show on Freakonomics featuring John Bogle amongst others

The Stupidest Thing You Can Do With Your Money

Interesting also to see that Bogle's initial inspiration on index funds came from a paper published in The Journal of Portfolio Management by economist Paul Samuelson called “Challenge to Judgment.”

Samuelson’s paper challenged the performance of active managers and suggested that, “at the least, some large foundation should set up an in-house portfolio that tracks the S&P 500 Index— if only for the purpose of setting up a naive model against which their in-house gunslingers can measure their prowess.”

 

Just got off the phone with vanguard as I'm still learning about it. I'm interested in the high growth option and was advised dividends can be paid to me or back into the fund if I choose. Last years dividend net in high growth was 9.3%. And overall it was a gain of 11.38%.
So I'm assuming no company tax was paid on this 9.3% and that is grossed up? Unlike lic's like arg for example who are indicating 3.8% yield but are 100% franked so the total grossed up is 5.42%.

Also confirmed 100k can buy the fund, not 500k as advertised online.

 

@Redwing @Il Falco @austing @Hodor
any idea what dividends these guys paid out during the last few years or what happened during the gfc?
I've asked for them to gather their dividend payouts as far back to 2006 if possible on their high growth fund. Curious to know if payments stopped.

 

Hi Alex

Could you let us know which wholesale international account you are referring too please.

​

 

Found it, so during 2009 dividends were down paying out 1.64% if you had bought in 2007 prior to the crash at 1.58 per unit. Year after was only slightly better.

 

Yep, also big distributions this year which I think relates to the change in asset allocation. This fund cannot be relied on for regular distributions particularly as there is now a large hedged component. Better to reinvest all income and set up a regular withdrawal plan.

 

You need to understand difference between distributions and dividends. The fund pays distributions which are capital and dividends. Part of the distribution will include franked dividends. You need to get hold of the distribution statements to see the components.

 

Three-fund portfolio - Bogleheads

@Redwing is a proponent of this simple portfolio, and I must admit that I am too. When I consider all aspects ; costs, tax effects, simplicity, behavourial, longevity of vehicles, tracking error, risk, volatility etc I can't really go past this portfolio for the investor who wants to manage their own affairs and simply not bother with all of the noise. Personally I'd be wanting government bonds for fixed interested component as the corporate bond premium is not enough to offset correlation. Can be constructed from both listed and unlisted products. I'd rate SANF highly with a portfolio of this type.