Originally posted by Slim
Theres always got to be one
Slim,
Who are you referring to?
If it is I, I read the prospectus for Mercator long before you posted & it is very clear that the fund is not a vehicle most property investors I know would choose.
If you are considering the fund as a short-term parking spot, you didn't mention this in your post. Looking at it in this sense & just now rereviewing the prospectus, well it still has few merits - there are many alternatives which would provide more reliable returns.
And as to pricing similar to Steve's fund (Navra) - well Mercator do charge an entry fee of 5% (and take this even if the financial planner charges you nothing) & charge monthly management fees of 1.4% regardless of how well the fund performs PLUS trailing commissions of 0.4% to fin planners and custodial fees of 0.2%.
On top of that it charges a performance fee of 20% if the fund does better than 9% - which is lower growth than I would expect from one of my self-selected residential properties.
Oh, and there's a withdrawal fee as well.
Steve's only charges for outperformance of the ASX200 and trailing commissions are absorbed into its own costs (see his prospectus from
www.navrainvest.com.au).
No contest in my humble opinion.
So Slim, I don't understand why you would consider Mercator a good investment vehicle.
Perhaps you could explain it to us?
Cheers,
Aceyducey