Peter Spann 1 Day Investor Update

[The Y-man]

Melbourne presentations yesterday.... the morning session had a few familiar bods in the second row

Off to bookshop to get that Paris Hilton thing.....

Cheers,

The Y-man

 

[oc1]

Melbourne presentations yesterday.... the morning session had a few familiar bods in the second row

Off to bookshop to get that Paris Hilton thing.....

Me too...sounds like a good read (or a laugh, maybe both )

Went to the arvo session...good stuff as usual.

 

[sonic]

Surprisingly it is not the Buy Write index that is quoted in the brochure but rather one of the key indexes like the ASX 200 (I do not have a copy of the brochure with me but I will check on that and will correct this if I am inaccurate).

I found the brochure after cleaning up my room just then

buy write fund performance since inception was 14.04% p.a. s&P / ASX buy write index was 15.86% it also quotes s&p / asx 200 accumulation index was 26.29% p.a. but i don't think this is a relevant benchmarket.

anyone know the reason for underperformance against the asx buy-write index benchmark?

 

[oc1]

I found the brochure after cleaning up my room just then

buy write fund performance since inception was 14.04% p.a. s&P / ASX buy write index was 15.86% it also quotes s&p / asx 200 accumulation index was 26.29% p.a. but i don't think this is a relevant benchmarket.

anyone know the reason for underperformance against the asx buy-write index benchmark?

Does the ASX buy write index have fees? The Macq bank is a net figure so if it was gross then it may be higher than the ASX one? Maybe that has something to do with it. (Probably completely wrong though )

 

[Andrew]

Since the fund is not going to pay distributions until August 2007, does that mean we're
going to have to pony up another year's interest in advance next year before seeing any
return, or will they have a grace period until after the distribution is paid?

andy

 

[Aceyducey]

That's one of my questions Andrew

Still waiting for the PDS......

But got two more invites to attend the (past) cashflow evening - my entries in the Freeman Fox database must be accumulating.

Cheers,

Aceyducey

 

[D.T.]

Andrew,

My assumption is that they'd have the distribution figures available well before the interest payment is due - the actual payment just takes 4-6 weeks or whatever to actually be dished out.

 

[Aceyducey]

BTW - received an Aurora buy-write income fund notification if anyone wants to look at another competitor releasing a 'similar' fund.

Named the Aurora Buy-Write Income Trust, it's a listed trust with up to 65% internal gearing, that will focus on owning and writing options over 15-25 S&P/ASX100 stocks but may also purchase other securities and hybrid.

Minimum $2,000 investment.

I'm not commenting on better/worse, but if anyone feels that the Macquarie fund is strange and different, well it isn't

PDS is at www.aurorafunds.com.au with more info.

Cheers,

Aceyducey

 

[twodogs]

I'm not commenting on better/worse, but if anyone feels that the Macquarie fund is strange and different, well it isn't

Aceyducey

The only strange thing about this Macquarie product is the whereabouts of the PDS Vaporware perhaps.

 

[Cheeks]

Aceyducey - That Aurora funds looks good.

Distributions are twice a year, no application fee, margin lending will be available (LVR yet to be determined). The fund managers are Merrill lynch (MLIM).

Guess it is hard to compare the two when you only have a PDS for one of them

Aceyducey, I'd be interested to hear your opinion of the fund (online or offline).

 

[Rixter]

The only strange thing about this Macquarie product is the whereabouts of the PDS Vaporware perhaps.

I could have a guess - ASIC.

And we all know how fast govt agencies work

 

[D.T.]

Aurora buy-write fund fees:

Management fee: Higher of 1.025% gross or 2.05% net
Performance fee: 12.813% gross performance net of fees over UBS Bank Bill index.

I couldnt seem to find any performance info on the UBS Bank Bill index, but what I could find made it sound like it wasnt much better than the cash rate. Maybe someone could correct me here?

 

[Cheeks]

I called Aurora and had a little chat with them.

They are saying that the fund performance is expected to outperform the ASX Buy-write index (I think that is right), therefore, above approximatley 15% (obviously there can be under performance).

It seems very similar to the PS Fund with regard to expect performance.

 

[twodogs]

Freeman Fox gave me a reminder call today for their next investor update, so I asked about the PDS. Apparently being printed... That's good, but a soft copy will do ! Hint Hint PS

 

[twodogs]

I called Aurora and had a little chat with them.

They are saying that the fund performance is expected to outperform the ASX Buy-write index (I think that is right), therefore, above approximatley 15% (obviously there can be under performance).

It seems very similar to the PS Fund with regard to expect performance.

This fund looks an alternative to the Macquarie Fund, but the 100% finance at 7.5% is a real sweetener for their fund. Got to make planning decisions soon before too close to end of year, but without the Mac PDS, it's not easy

 

[Melbear]

Is it not available from Macquarie's website?

http://personal.macquarie.com.au/pe...ernative_investments/newton/newton_detail.htm

Or am I totally wrong?

 

[twodogs]

Is it not available from Macquarie's website?

http://personal.macquarie.com.au/pe...ernative_investments/newton/newton_detail.htm

Or am I totally wrong?

There is another Mac product not yet released called "Macquarie Enhanced Income Fund", and may not be released to public except via Freeman Fox. The product on that link has some similarities, but not the same. It invests in in-house Mac funds, with capital protection and 100% finance.

 

[The Y-man]

There is another Mac product not yet released called "Macquarie Enhanced Income Fund", and may not be released to public except via Freeman Fox. The product on that link has some similarities, but not the same. It invests in in-house Mac funds, with capital protection and 100% finance.

Actually it is a combination (50/50) of the two funds listed on the page: Buy-Write and Income timing Funds.

However, these two funds are then packaged in a Cap Protected / 100% gearable structured product - which is NOT available on the page.

Cheers,

The Y-man

 

[twodogs]

PDS and loan details are now on freeman foxwebpage.

 

[twodogs]

PDS and loan details are now on freeman foxwebpage.

Hmmm, Peter Spann mentioned at the launch that people often concentrate too much on fees and not the overall return. True, but there are numerous fees in this product that do add up somewhat. Fine if the returns are WOW , but the "past performance" figures quoted of around 14%+ make the fees look a bit high. Still, cheap finance available at 7.5% (for now)...