They recently reduced the management fee from 0.5% to 0.3%, and they finally stopped being lazy and holding ASX:IOZ (an asx 200 etf that is NOT fif exempt), instead holding companies directly (fif exempt). Thinking of making this a large % of my portfolio instead of making heaps of individual stock picks. What are your thoughts? Is there a better option?
The way Smartshares invests 100% into other funds and then charges what is IMO an exorbitant management fee really irks me. As you say it is lazy. I also think it is deceitful and one ends up paying 2 lots of management fees. So good to see they are investing directly and charging a lower fee.
More info on AUS here:
https://smartshares.co.nz/types-of-funds/australian-shares/aus
You ask, is there a better option? I would have thought one could pick the eyes out of their picks and weed out the dogs, and make a better return given no dogs plus the lack of management fee. But that would be hard given their top 10 inclusions make up ~45% of the fund.
I don't have an answer but if I am investing in Australia I want exposure to their banking and mining sectors. I have exposure to ASX banks indirectly via the Smartshares ASF fund (https://smartshares.co.nz/types-of-funds/australian-shares/au-financials), and exposure directly to mining by investing in 5 FIF compliant miners plus an exploration driller.
Are there other sectors to which you want particular exposure?
I figure for the pretty reasonable 0.3% fee I can save myself the hassle of picking good vs bad and book keeping. My idea was making this a key position in my investment portfolio and then making 2 or 3 picks in the AUS market myself, likely focusing on fif exempt companies with global revenue streams. Maybe an exploration driller to round it all off :o . Is there a reason you went with ASF over AUS+ a few CBA shares given the lower fee?
Quote from: Plata on Jul 21, 2022, 07:29 PMIs there a reason you went with ASF over AUS+ a few CBA shares given the lower fee?
I wanted exposure to just the banks without muddying the waters with the other companies that are in the fund. It's as unsophisticated as that. Yes the fee is a touch higher but I'm ok with that.
Quote from: Plata on Jul 21, 2022, 07:29 PMI figure for the pretty reasonable 0.3% fee I can save myself the hassle of picking good vs bad and book keeping. My idea was making this a key position in my investment portfolio and then making 2 or 3 picks in the AUS market myself, likely focusing on fif exempt companies with global revenue streams. Maybe an exploration driller to round it all off :o . Is there a reason you went with ASF over AUS+ a few CBA shares given the lower fee?
This is basically what I do with NZX and ASX. Use ETF as a major holding and then add some picks of my own.
Quote from: Plata on Jul 21, 2022, 07:29 PMI figure for the pretty reasonable 0.3% fee I can save myself the hassle of picking good vs bad and book keeping. My idea was making this a key position in my investment portfolio and then making 2 or 3 picks in the AUS market myself, likely focusing on fif exempt companies with global revenue streams. Maybe an exploration driller to round it all off :o . Is there a reason you went with ASF over AUS+ a few CBA shares given the lower fee?
Seems like a pretty good strategy to me.
https://www.nzherald.co.nz/nz/government-quietly-introduces-103-billion-tax-on-kiwisaver/OZTZMO6QKJJQOTUL5DG7UFEWA4/?utm_medium=Social&utm_campaign=nzh_fb&utm_source=Facebook&fbclid=IwAR3YKDg7Dietckv5oVoZ6GcBESJm2N3F9qezRMkYgaDimi98W_QZomTqY88#Echobox=1661833578
Will be interesting to see if the smartshares fees change from this
Looks like Smartshares don't want to share any info at the moment.
https://smartshares.co.nz/fund-investor-report (no info)
https://smartshares.co.nz/types-of-funds/international-shares/total-world (no info)
etc. etc. etc.
Hope this isn't permanent. But perhaps they don't like us to see how they underperform.
Edit. You can get info via their legal link but it's pretty unfriendly compared to what they used to have.