Peter Spann 1 Day Investor Update

[jscott]

Hmm. I preferred the "Magic Options Outcomes". The Magic Moo Cow ®

So the enhanced income fund isn't about buy/write ? I thought from the posts above that it was a buy/write fund like the "Donut's" current one but with the added feature of trying to take advantage of dividend run-up? (and capital protection.)

Peter, are you able to confirm if your new Enhanced Income fund is a buy/write strategy plus trying to take advantage of dividend run-up OR is it based purely on trying to take advantage of dividend run-up ?

 

[geoffw]

So the enhanced income fund isn't about buy/write ? ...

jscott

My comment was based purely on the naming of the fund (based Freeman Fox's literature). It had nothing whatsoever to do with the investment strategy of the fund. Sorry

 

[jscott]

haha thanks Geoff.

 

[Peter Spann]

50/50

I can confirm that the fund is 50% invested in the Buy Write strategy, and 50% invested in the Dividend Run Up Strategy, unless there is a major "hit" to the portfolio when it reverts to bonds (capital protection mode).

 

[Peter Spann]

This may help...

Marketing I know so forum bosses delete if you think too blatant but I thought it would help people understand the most up to date information...

Could this be the most exciting Cash Flow investment around?

*NEW* product launch: The Macquarie Equity Enhanced Income Fund

Plus: Your Invitation to our FREE Cash Flow Workshop


Hello
For years I’ve been looking for an investment that…

• Aims to produce positive cash flow

Offers:

• Capital Protection1;

• 100% finance (to approved applicants) at a…
• Low interest rate with…
• Potential for Franking credits for tax effective yield;
• And backed by one of Australia’s leading absolute return managers

And, amazingly, I think I have found it!
Take advantage of potentially high yields without the hard work

Most investors know about the potentially high yield from the Buy Write strategy but shy away from the daily grind of monitoring the investment - but now you can take advantage of the strategy and have professionals you can trust to manage it for you.
The Buy Write simply uses options to generate income against blue chip shares. It can be highly profitable but it does take skill and close monitoring to attain full effectiveness.
We have selected one of Australia’s leading investment managers Macquarie Portfolio Management - part of the Macquarie Bank Group which has $69 billion of specialist assets under management (as at 31 January 2006), including infrastructure, property, private equity and hedge funds, and asked them to make available their Macquarie Newton Buy Write Fund to our clients…
This fund has produced 14.04%* annualised return since inception2.

Then we also asked them to add a potentially highly profitable twist…
Not only does this fund use the Buy Write strategy, it has an added boost from the Macquarie Newton Income Timing Fund - a “dividend run up” strategy which aims to take advantage of the price rises many shares demonstrate before a dividend is paid.
The Macquarie Equity Enhanced Income Fund will invest equally in the Macquarie Newton Buy-Write Fund and the Macquarie Newton Income Timing Fund. Macquarie Portfolio Management Limited (ABN 55 092 552 611) is the responsible entity for the Fund, and Freeman Fox is the exclusive distributor of the Fund.
Aiming to produce a cash flow positive income

You’ll know, that if done well, these types of trades can dramatically enhance returns and performance.
If you do the maths it’s easy to tell if the fund continues to perform it would produce a very nice income*.
As an astute investor you’ll also know that this type of trading is not without its risks so that’s why we thought that if you were going to invest in this type of product you’d be thrilled to know it comes with…
Capital Protection[1]

If you could invest in a fund that aimed to be cash flow positive and produce a high yield and came with capital protection, that’d have to be appealing to many of you? That’s what we thought.
The capital protection is at what is called “the capital protection date” or the end of the fund (6 years, 11 months). So, while you need to make sure you understand the risks of the fund for the duration of the investment it is comforting to know that at the end if things don’t go as planned your capital is protected. There are some limitations to capital protection and investors should read the product disclosure statement.
100% Finance

That’d be ideal so of course this product has it (to approved applicants)! And it’s at a terrific rate of interest if you pay annually in advance: 7.25% pa (indicated rate – actual rate will be set at commencement).
But we recommend that you consider the fixed rate – indicated to be 7.5% if paid quarterly in advance.
Plus there is potential for franking credits on the dividend run up strategy – a huge boost to the tax effectiveness of the income stream.
You can even finance the first interest payment!

If you choose the annual interest in advance option then you can also receive an “Interest Assistance Loan” for the first interest payment of up to 50%, repayable over 3 years.
When you come from a property background this would appear impossible – 100% finance, low relative interest rate, capital protection AND up to 50% of the first interest payment financed as well. Amazing!
Understanding the risks

It is only sensible that if you are considering investing because of all the positives that you also consider the potential negatives.
The full risks are detailed in the Product Disclosure Document which we encourage you to read in detail but it is view that the primary risk is that the fund will not generate sufficient income to meet the interest payments. This could occur if there was a significant correction in the share market (as both mandates are exposed to the share market).
Dynamic or “threshold” management is a key feature of the fund – that involves switching the Fund’s exposure away from the Buy-Write and Income Timing funds and into cash equivalent instruments (zero coupon bonds) if the Fund’s performance falls below certain pre-determined triggers. This is designed to reduce the risk of investors losing their initial capital.
And of course you’d want the person recommending it to you, to be investing too, wouldn’t you?

I must admit I am always amused by the disclaimer we have to add “principals may hold this investment”. I’ve always thought it would be more important to know when they don’t hold the investment! After all if it’s good enough for me to recommend to you, then it surely would be good enough for me to invest in? Right, and that’s exactly what I am doing – investing my own funds.
I think it’s great, other wise I wouldn’t be recommending it to my clients.
And why wouldn’t I…
ü Aiming to produce a Cash Flow Positive Yield
ü Capital Protection1 (at the Capital Protection date) – making it safer for me to borrow to invest
ü Using my favourite Buy Write Strategy plus a Dividend Run Up Strategy for extra boost
ü 100% Finance (to approved applicants)
ü Low fixed interest rate for term of the investment (7.5% indicative rate – rate set at commencement)
ü 50% finance for the first interest payment (to approved applicants on annual advance interest payment option)
ü Provides Diversification from “traditional” investments like property
ü Is available for Self-Managed Superannuation Funds (without borrowing)
ü Potential for Franking credits for tax effectiveness
It’s pretty hard to match that in any “traditional” investment, especially not in the next few years I suspect.
As always you should read the Product Disclosure Statement and seek advice from a License Financial Adviser (of course if you are a Wealth Club member, that’s Freeman Fox!). Call us now on 1800 000 369 for your copy.
Also, in order to explain this and other positive yield investments we are presenting special 3 hour…
Cash Flow Investing Workshops – FREE to clients

Where I present ideas on investments that can produce a positive yield...​

Discover how you could build a cash flow positive portfolio of quality investments
There are many ways to invest for positive return - high yield share funds, commercial property trusts, absolute return funds and more but most people are mystified by the complexity of it. This workshop unravels the confusion and puts everything in plain English.
I am presenting a series of “Cash Flow Workshops” across Australia and you’re invited:

Newcastle - 19th April
Sydney - 22nd April
18th May ***New
Perth - 26th April
***New seats
Melbourne - 29th April
19th May ***New
Canberra - 20th April
Brisbane - 23rd April
Adelaide - 27th April
Webcast


The workshops are FREE for Freeman Fox clients and just $48 for guests. Plus you get to bring a guest FREE too!
So call us now on 1800 000 369 to secure your place

At the workshops you will get the first copies of Product Disclosure Statement for the Enhanced Equity Income Fund giving you first opportunity to invest if it is suitable for your needs.
This really is one of THE most anticipated launches that we have ever done. Don’t you owe it to yourself to at least find out more?
Once it’s closed it’s closed – there are no extensions

You MUST act now. This offer is only open until 23rd June 2006 and if you want finance you’d need your application in at least 7 days prior to the close on 16th June 2006.
Act quickly

Book into “The Cash Flow Workshop” in a location near you by calling on 1800 000 369. you will receive your copy of the PDS there.
Please also be aware that we can not answer questions about the product until after the launch.
Cheers

Peter Spann
CEO
Important Information

*Past performance does not necessarily indicate future results and are market dependant.
This offer is not yet available. Units in the Macquarie Equity Enhanced Income Fund issued by Macquarie Portfolio Management Limited ("RE") will be offered under a Product Disclosure Statement expected to be available from mid April from Freeman Fox Ltd on 1800 003 369.
The material in this letter was compiled prior to the completion of the PDS so product features may change. It is important that you read the PDS and ONLY make your investing decision based on the information contained within. Investments can only be made on the application form in the Product Disclosure Statement.

[1] Capital protection will only be available on the capital protection date. It is proposed that the capital protection will be provided by Macquarie Bank Ltd by way of a Put option. Capital Protection is subject to the terms and conditions of the Put option agreement, which will be described in the PDS for this fund. Due to the time value of money and inflation, the capital protected amount is unlikely to have the same real value as it would on the investment date. The fund, and its performance are not guaranteed by Macquarie Bank Limited or any of its subsidiaries and that investments in the fund do not represent deposits of Macquarie Bank Limited.​

2 Inception date of the Macquarie Newton Buy Write Fund was 29th March 2004. It is important to note that the total return information has been adjusted for differences between the fees that were charged when this fund was a wholesale trust and the fees that are currently charged. This return has been calculated taking into account fund fees and expenses (in particular including performance fees but not any contribution fees or withdrawal fee) and assumes reinvestment of dividends.
3 Source: Morningstar Data, 12 month return for period ending January 2006. Average performance across 37 currently approved retail funds was 18.36%. For those funds where 12 months data is not available, these returns have been annualised. The funds used in this comparison are spread across the following asset classes - cash, fixed interest, listed property, international shares, Australian shares and do not include tax advantaged or alternative investments.
The material in this program is of the nature of general information only and neither purports nor intends to be advice. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person.
Before making an investment decision you need to consider, with or without the assistance of a Licensed Financial Adviser, whether the investments presented are appropriate in the light of your particular investment needs, objectives, risk profile and financial circumstances.
Peter Spann is an Authorised Representative of Freeman Fox Ltd, Aust. Financial Services Licence No. 246510.
© Copyright Freeman Fox 2006.

http://www.somersoft.com/forums/newreply.php?do=newreply&noquote=1&p=203987#_ftnref11 Capital protection will only be available on the capital protection date. It is proposed that the capital protection will be provided by Macquarie Bank Ltd by way of a Put option. Capital Protection is subject to the terms and conditions of the Put option agreement, which will be described in the PDS for this fund.

 

[NigelW]

Peter

Unfortunately can't make the presentation...but would like to have a look at the PDS. Where can I obtain a copy?

Many thanks
N.

 

[Kenny]

Hello Peter,

Thanks for always dreaming up new strategies for wealth creation. I look forward to learning about the Fund.

Does your previous email mean we have to become a client (or a guest of) to invest in your Fund?

Like Nigel, could you direct me to where I may get a PDS or do I have to pay $48 to go and get one?

Regards,

Kenny

 

[Peter Spann]

mmm, now there's an idea!

Thanks for always dreaming up new strategies for wealth creation. I look forward to learning about the Fund.

Well, that's my thang!

Does your previous email mean we have to become a client (or a guest of) to invest in your Fund?

Nope, anybody can invest - of course we'd love to have you as a client though!

Could you direct me to where I may get a PDS or do I have to pay $48 to go and get one?

Now there's an idea - CHARGE people for a copy of the PDS.

That could have legs!!! In fact we'd probably make more money doing THAT then actually getting people into the fund!

Nah, you can have one for free.

They will not be available until the end of this month. (People who come to the workshops will get the first copies).

But you can call our office and ask for a copy or go to our website www.freemanfox.com.au and it will be on there about the 25th April 2006.

 

[Jacque]

Now there's an idea - CHARGE people for a copy of the PDS.

That could have legs!!! In fact we'd probably make more money doing THAT then actually getting people into the fund!

Nah, you can have one for free.

Oh come on Peter- you're a better marketer than that!
Create some urgency by promising the first 100 PDS's for free and only then do we have to fork out the $48. Seems to work well on all those shopping channels Or you could just throw in a free autographed pic of yourself for the first 100 callers as an added incentive

 

[Kenny]

me me me me! I want an autographed PDS.

Peter, you need people like Jacque on your team!

All the best,

Kenny

 

[Peter Spann]

Mmm, now you're talking!

Or you could just throw in a free autographed pic of yourself for the first 100 callers as an added incentive

I'm thinking I'll send a free N U D E photo (autographed or not) to anybody who DOESN'T request a PDS!!!

 

[geoffw]

I'm thinking I'll send a free N U D E photo (autographed or not) to anybody who DOESN'T request a PDS!!!

Eeewwww!

(Even after all that weight you've lost- I want a PDS!)

 

[skater]

I'm thinking I'll send a free N U D E photo (autographed or not) to anybody who DOESN'T request a PDS!!!

With that in mind, I better get a PDS then.

 

[thefirstbruce]

Hey Pete, will be at your Brisbane April 23 AM presentation.
Why not just recruit some bikini clad girls to hand out the PDSs.
Seems to help sell more cigarettes, alcohol, and Ferraris.

 

[The Y-man]

I'm thinking I'll send a free N U D E photo (autographed or not) to anybody who DOESN'T request a PDS!!!

....not the one that involves pole dancing.......

Cheers,

The Y-man

 

[bigfella966]

Marketing I know so forum bosses delete if you think too blatant but I thought it would help people understand the most up to date information...

Could this be the most exciting Cash Flow investment around?

*NEW* product launch: The Macquarie Equity Enhanced Income Fund

Plus: Your Invitation to our FREE Cash Flow Workshop

Hello Peter,
Just been talking to Yolanda Ramke (Freeman Fox) to organise 2 seats, she seemed a bit unsure about the above invitation, and I just wanted to confirm if it was a free invite to SS members, no biggy really, we'll be there regardless.

Cheers,
BF

 

[vandalic]

I think Peter meant free for freeman fox clients, but a charge for others.

 

[Cheeks]

Hi

I suspect the new fund will have two sets of documents, one will be the PDS and one will be the loan application papers that go with the PDS.

Having been to one of Peters talks I was very surprised to see that all the PDS documents went instantly but very few of the loan doc's.

It's strange what people do whilst not actually doing anything

I suggest people grab the required doc's ASAP before "mum & dad" pick them up and use them for recycling


(This isn't a plug for the product, just an observation from a previous experience)

 

[grossreal]

thanks for the info will have a look at it.
and give the 1800 number a ring

 

[Rixter]

I think Peter meant free for freeman fox clients, but a charge for others.

Thats my take on it too....tho Peter, Free for Somersoft would be great also