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Well, their fees are tied to the performance of the fund... Hopefully the ASX200 picks up in the next year.

Yeah, not very good so far... Maybe I should stick to property!

Yeah I prefer the strategy that Warren Buffet recommends to average investors. Buy into a low cost passive index style fund and hold as long as you can. I thought I'd spruce it up and with a 100% LVR.

I went ahead with it. Time now for me to forget about this and check again later.

Just over 5%. See the graph 1 page back.

Anyway just posted in the application. Let's check this thread in another 3 years. Maybe I'll fall flat on my face, but who dares wins.

Have you learned how to trade or do you not participate in the stockmaket?

Hi Bill. No I haven't. So it's possible to get 100% LVR with this type of money? (or the same effect?). (Note I am inputting $78k to control $500k worth of XJO for 3 years. The 78k is = 3 years of interest at 4.5%). I've spent a lot of time looking at active vs passive investment and have...

Hi emu, Good to hear from you again. Did you pay the 2.2% fee? i.e. 100,000 units at a 15.7k cost? I'm looking at a 11k fee - just tried to get them down on it today but no dice. David.

I'm thinking I'll just do this in my own name as it's only a 3 year thing.

Another question - would it be simplest to invest in this just in my own name? I'm a high tax bracket, no kids or wife. I do have a HDT for property though.

Advisor gets performance fee + entry fee. Lender gets interest. No MER.

XJO% IRR 10 30.30% 11 35.70% 12 40.60% 13 45.20% 14 49.60% 15 52.70% 16 57.70% 17 61.40% 18 65.10% And... looks like it's gotta do at least 5% to break even. That's what I'm betting on I suppose, do I think the ASX 200...

Of course there are those 5 risk management things that attempt to smooth our performance (the volatility thing, the averaging thing, etc) and the 10% performance fee. Obviously I can't simply model those things, but what they 'take away' they seem to 'give back + a bit'. Overall they don't...

Well you'd also get 2% growth on the portfolio in years 1 and 2, then 10% growth in year 3. If the market rose 10% each year on $1,000,000 you'd get Year 1 Income: $80k coupon - 10% performance fee = $72k coupon. Growth: $20k growth - 10% performance fee = $18k growth. New portfolio...

Thanks for the comment House Keeper - I will check that out! Kudos to you. Yes I was interested to know if the fund only achieved 7% how would that be split between growth and income. Looks like it would be all growth. I thought it would be 50/50 split. A question I'll put to them. My...

4.5% interest pa x 3 years + a 2.2% entry fee = 15.7% of sum invested. $157,000. If the fund achieves it's goal of 7.2% coupon payment that's $72,000 returned to you at the end of year 1, and another at the end of year 2 which should have that all paid off. So you basically get the growth...

If the investment was limited-recourse (in that the only funds the creditor could lay claim on is the 3 years worth of pre-paid interest), why wouldn't you go for such a thing?

No joke....

Hi. The captial protection doesn't work like that. Basically they buy a bond for the guarantee and a call option for the growth.