Managed funds

[Dolcile]

Thanks for sharing Dolcile. Interesting fund.  Do you mid me asking what percentage of your portfolio is in there ?  I might throw them a bone in due course.

Of course, Basil.

It is only a very small allocation. Just some skin in the game, while I see how it performs.  I'm viewing it as an equity diversifier. My current allocation at the end of September is:


Cash and fixed income: 10%  [higher than I'd like but funds are set aside for a home upgrade, plus I have some nervousness around current valuations]

Alternates (Salt Long Short Fund): 3%

Australian equities (PIE Funds Australasian Dividend Fund): 9.5%

NZ equities (Turners, HLG, Tower): 6%

International equities (index funds): 71.5%

[Basil]

Thanks for sharing.

[entrep]

Thanks Dolcile for Posting this. Interesting comments re HGH and Tower.

I agree. I have just had to read myself and like what they have to say.

Just on SALT, will this acquisition presumably have any effect on their strategies and team and investments etc?

https://www.saltfunds.co.nz/post/alvarium-acquires-100-of-salt-funds-management

Also, there's no difference in investing in these funds via InvestNow (where available) as opposed to going directly, right?

[Dolcile]

Also, there's no difference in investing in these funds via InvestNow (where available) as opposed to going directly, right?

That's right.  I'm going through InvestNow.

[Basil]

I made the decision to expand my own GARP investment program with more HLG and more TRA than chase 47% one year return in the PIE dividend growth fund or invest in any international fund.
International metrics look highly elevated to me and risk abounds e.g. Nasdaq as a whole trading on 31 times next year's earnings v 10 year average of 19, (source CNBC). Sure, you can argue that with A.I. its different this time but I think there's a very real risk this is a bubble and "this time it's different" is the most dangerous phrase that exists when it comes to investment.

[Shareguy]

I made the decision to expand my own GARP investment program with more HLG and more TRA than chase 47% one year return in the PIE dividend growth fund or invest in any international fund.
International metrics look highly elevated to me and risk abounds e.g. Nasdaq as a whole trading on 31 times next year's earnings v 10 year average of 19, (source CNBC). Sure, you can argue that with A.I. its different this time but I think there's a very real risk this is a bubble and "this time it's different" is the most dangerous phrase that exists when it comes to investment.

I share your concerns Basil regarding the international markets which is why I've sold all my US stocks. However there is plenty who will argue that the current impetus is going to continue, specially with AI.

With Interest rates declining and the economy hopefully turning a corner I see the New Zealand market as a very safe bet. However the Australian small cap space is still offering plenty of opportunities in my opinion and have invested in the belief that the Australian small caps will continue to outperform the NZX over the short to medium term.


The latest update has Pies 1 year return as

Growth.    48.5 percent
Emerging.  31.9
Div growth 27.2
Growth 2.  18.3

It's not really a fair comparison but I have included the ASX small ordinaries and the NZX50 as follows.

ASX  1 year return 15.96 percent. 3 year 13.23 percent
NZX50 1 year 0.83 percent. 3 year 3.98 percent

https://www.spglobal.com/spdji/en/indices/equity/sp-nzx-50-index/


https://www.spglobal.com/spdji/en/indices/equity/sp-asx-small-ordinaries-select-index/


I'm not expecting another 48 percent return BUT I'm expecting another good year. If I don't like the performance or feel that I have better opportunities elsewhere 10 working days to get my funds is not long to wait, well it's how I see it anyway. We will see.

[Basil]

With Interest rates declining and the economy hopefully turning a corner I see the New Zealand market as a very safe bet. However the Australian small cap space is still offering plenty of opportunities in my opinion and have invested in the belief that the Australian small caps will continue to outperform the NZX over the short to medium term.

Fair enough mate.  I'm a bit older so I am happy to take a lower risk approach on high quality stocks on the NZX.  I also like the dividend yield.