Managed funds

[Basil]

WOW that's an incredible result guys especially after their egregiously high 20% performance fees are deducted.  The directors must be incredibly pleased doubling the millions they put in as well as making an absolute fortune from performance fees from everyone else.  Wonder how long before it starts reverting to their target rate of 15% per annum performance?  Probably far too late to get in now.

[Shareguy]

WOW that's an incredible result guys especially after their egregiously high 20% performance fees are deducted.  The directors must be incredibly pleased doubling the millions they put in as well as making an absolute fortune from performance fees from everyone else.  Wonder how long before it starts reverting to their target rate of 15% per annum performance?  Probably far too late to get in now.

Never too late Basil in my opinion. Then again there is no guarantees.  More time game fishing and less time researching sounds good to me though.

[Dolcile]

Hi all,

I thought I'd chip in on this topic.   Personally this is my order of operations for investing in our managed funds:

Kiwisaver up to the employer match.  The vehicle I use is InvestNow, Foundation Series Total World Fund (Vanguard VT). I'm 25 years from being able to access my KS so the 0.50% buy/sell spread is worth the extremely low expense ratio.

Invest up to the FIF exemption limit. For me this is the Total US stock market (Vanguard VTI) using Hatch. The limit is $50,000 COST per person, so you need to watch out for dividends tipping you over the threshold.

Then everything else into my set asset allocation:

Simplicity Global Share Fund - hedged
Simplicity Global Share Fund - unhedged
Simplicity Global Bond Fund - hedged

These funds have an ER of 0.15% and invest directly so minimize tax leakage.

Then a small amount of exposure to the NZ market via Simplicity NZ Share Fund. Expense ratio of 0.1%.

[Raven]

Hi all,

I thought I'd chip in on this topic.   Personally this is my order of operations for investing in our managed funds:

Kiwisaver up to the employer match.  The vehicle I use is InvestNow, Foundation Series Total World Fund (Vanguard VT). I'm 25 years from being able to access my KS so the 0.50% buy/sell spread is worth the extremely low expense ratio.

Invest up to the FIF exemption limit. For me this is the Total US stock market (Vanguard VTI) using Hatch. The limit is $50,000 COST per person, so you need to watch out for dividends tipping you over the threshold.

Then everything else into my set asset allocation:

Simplicity Global Share Fund - hedged
Simplicity Global Share Fund - unhedged
Simplicity Global Bond Fund - hedged

These funds have an ER of 0.15% and invest directly so minimize tax leakage.

Then a small amount of exposure to the NZ market via Simplicity NZ Share Fund. Expense ratio of 0.1%.

What is your FX demarcation line for hedged v unhedged Simplicity, or do you just have a standard mix of the two to get some partial hedging?

[Dolcile]

What is your FX demarcation line for hedged v unhedged Simplicity, or do you just have a standard mix of the two to get some partial hedging?

At the moment I'm 99% hedged - mostly because I didn't think deeply enough about it at the time that I moved from another provider.    Any new capital is going into unhedged and I'm looking for an opportunity to move some of the hedged position to unhedged. At least 50/50.

[Shareguy]

Great to see Chris and Mark have done it again with out performance of the index and return over 10 percent for March. 

Up 120 percent since inception.


https://discoveryfunds.co.nz/assets/Newsletters/Discovery-March-24.pdf

[Basil]

Outstanding.

[Shareguy]

Well done Pie Funds. Good results also.

https://www.piefunds.co.nz/Portals/0/Documents/Slice%20of%20Pie/04_April_Slice_of_Pie_Digital_2024.pdf?ver=HgBUha5fyX_d2aCoZx9O_w%3d%3d&utm_medium=email&utm_campaign=Slice%20Of%20Pie%20-%20April%2024&utm_content=Slice%20Of%20Pie%20-%20April%2024+CID_1eddb08fab78692e06d5fed606661739&utm_source=Email%20marketing%20software&utm_term=Slice%20of%20Pie%20PDF

[Shareguy]

April was a tough month alright. I notice Discovery founders Chris and Mark topped up which is encouraging.

https://discoveryfunds.us11.list-manage.com/track/click?u=5c1216a1533df806fdc1c886f&id=3169fb1ad9&e=67af1006e4

[Basil]

Pretty good result for April considering small caps generally correct more severely than large caps in a correction.  Think I will sit on the sidelines a while longer though.  This quarter to June feels likely to me to be a period of consolidation after a record 5 month run to 31 March.

Quite like my large position in Barramundi warrants which confers upon me the right, but not the obligation to buy their shares on 25 October @ 63 cents, (latest NTA just under 76 cents)    Probably just run with that and see the lie of the land with Discovery sometime after that warrant exercise date

[Shareguy]

Another great result from Discovery in May. Gosh fund closing soon to new investors.

https://www.discoveryfunds.co.nz/assets/Newsletters/Discovery-May-24.pdf

[Basil]

Never too late Basil in my opinion. Then again there is no guarantees.  More time game fishing and less time researching sounds good to me though.

Sounds really good, and not to forget more time for walking my dog, staying fit and looking after myself better.  12 good long doggy walks in 12 days is a pretty good effort at this time of year!  Quite clearly these are very smart guys at Discovery and FOMO got the better of me so as you know, I threw them a bone a while back and a couple more since.

[Shareguy]

Sounds really good, and not to forget more time for walking my dog, staying fit and looking after myself better.  12 good long doggy walks in 12 days is a pretty good effort at this time of year!  Quite clearly these are very smart guys at Discovery and FOMO got the better of me so as you know, I threw them a bone a while back and a couple more since.

Congrats Basil. Raising $300m in a short time to invest in such a concentrated portfolio of companies (20 company's) listed on the ASX/NZX is very impressive. Interesting that they have the bulk invested on the ASX. A sign of the times I guess.

[Basil]

Thanks Shareguy, yes, it's a sign of the times.  Tony Alexander thinks the N.Z. economy is in deep doggy doo.
https://www.newshub.co.nz/home/money/2024/06/economy-deep-in-the-excrement-poor-performing-businesses-getting-weeded-out-says-expert-tony-alexander.html

[BlackPeter]

Thanks Shareguy, yes, it's a sign of the times.  Tony Alexander thinks the N.Z. economy is in deep doggy doo.
https://www.newshub.co.nz/home/money/2024/06/economy-deep-in-the-excrement-poor-performing-businesses-getting-weeded-out-says-expert-tony-alexander.html

He didn't say doggy-doo ... and lets face it, other excrements like manure (e.g. from cow or sheep) are an amazing fertilizer ;

And anybody who cares for a garden knows that weeding is essential. So, I guess what Tony is saying is that this is the best time to start growing your investments. A bit more cheer might be appropriate.