Super Fund that invests in Navra Fund

[muppie]

Hi,

Sorry if this isn't the right place to post. Mods please move it if that's the case.

I am wondering whether anyone know of any "managed" fund that invests in navra fund? This is for my company to invest the compulsory super.

Thanks

[geoffw]

There was talk of Navrainvest offering this option at one stage- it looks as if it is a valid option.

From http://www.navrainvest.com.au/index.asp?content=faqCan I invest my normal super into the Fund?
No. We are not a complying super fund. However, your financial advisor can assist you to invest your super via a Super platform.

[Aceyducey]

Muppie,

Try calling Navra invest http://www.navrainvest.com.au/index.asp?content=investor_serv

Cheers,

Aceyducey

[muppie]

In a true geek fashion, I sent them an email instead of calling them :D

[NigelW]

In a true geek fashion, I sent them an email instead of calling them :D

I think they're on the WealthTrac platform...

N.

[muppie]

I think they're on the WealthTrac platform...

N.
care to elaborate?

[Mry]

Complying super fund = 15% tax.
Non complying = 48.5% tax.

[NigelW]

care to elaborate?

http://www.wealthtrac.com.au/2020/

Hi Mup

You know there's these wonderful new fangled in-turn-et search engines... :p

[Mark Laszczuk]

Yes, you are able to invest your super via in Navra via Wealthtrac. I have some of my super in there too. Counting down the days 'til I can put all of it in there. Come July 1, I'll be marching into my super managers office at work and applying to have mine transfered over.

[Sultan of Swing]

Can someone tell me, if its not a complying super fund, can a SMSF invest in it? I'd think so but any comments will be appreciated.

Cheers :cool:

[TryHard]

Can someone tell me, if its not a complying super fund, can a SMSF invest in it?

Yes your SMSF can definitely invest in NavraInvest Managed Fund :

From http://www.navrainvest.com.au/index.asp?content=faq
"You can invest as a trustee of your self managed super fund. It is important to note that your super fund will be responsible for the taxation of the distribution income capital gains received as distributions as will all unit holders of the Fund."

The "non-complying" bit means you can't invest 'normal' super in it.

Cheers

[Sultan of Swing]

Yes your SMSF can definitely invest in NavraInvest Managed Fund :

From http://www.navrainvest.com.au/index.asp?content=faq
"You can invest as a trustee of your self managed super fund. It is important to note that your super fund will be responsible for the taxation of the distribution income capital gains received as distributions as will all unit holders of the Fund."

The "non-complying" bit means you can't invest 'normal' super in it.

Cheers

Thanks TryHard :)

[always_learning]

I have a question in regard to super. Income of the superfund is taxed at 15% right? thus if the a $10 fund delivers $1 of income the fund has have to pay 15 cents tax .

However if the super fund is asset focused, ie. the growth and profits are invested back into the businesses delivering zero income for the unit holders but of course the units will be more valuable eg. $10 unit finishes the year holding $11 of assets ($1 of growth) it wouldnt need to pay the 15% tax since there is zero distribution as the growth in locked into assets ie capital gains.

As I understand it Navra fund is a income fund, ie designed to delivery income. Since I dont really understand super very much wouldnt it be better to have a Navra SuperFund in which the income distributions are rolled back into the Navra wholesale fund, each super fund unit become more valuable because each unit progressively controls a larger chunk of units regular wholesale fund ? ie. Start the year 1 super fund unit owns 10 wholesale fund units. Growth in the year for example is 20%, at the year end the 1 super fund unit will own 12 wholesale units.

(If all that sounds dazed and confused...well it is!)

[Sim]

You are correct AL in that the way to ensure "growth" in the Navra fund is to reinvest distributions.

But I suspect that you are looking for Navra to actually do a different type of fund where they themselves do the reinvesting - with the idea to make it more tax effective ? Not sure how that would work. Steve might need to make some suggestions here about whether this is technically possible or not !

[always_learning]

You are correct AL in that the way to ensure "growth" in the Navra fund is to reinvest distributions.

But I suspect that you are looking for Navra to actually do a different type of fund where they themselves do the reinvesting - with the idea to make it more tax effective ? Not sure how that would work. Steve might need to make some suggestions here about whether this is technically possible or not !

Yes, thats right, you could call it "capital growth fund" that reinvests the income fund profits back into more income units. A super fund for young to mid career people should be all about growth paying tax on income in the fund seems a pointless exercise, losing out on some significant benefits of compounding of capital gains.
(we can hope Steve returns)

[Sim]

With what I'm using the fund for - I actually look for that income, it is partially offsetting the holding costs of my heavily geared real estate portfolio (with the rest being re-invested for growth). Thus I'm actually paying very little tax (if any). But I do see your point for superannuation - if we have no costs to offset (which is almost always the case with super), then the income nature of the fund is possibly not the most efficient investment mechanism when compared to the tax-free status of unrealised capital gains.