Superannuation Questions

[astroboy]

I didn't want to derail Olly's thread on business but I do want to ask this question. GarryK said this:

If you want more agressive managed/super funds - look for a small company fund. The ASX Small Ordinaries Index for 12 months to 31/5/04 return was 28.8%. I can quote you funds that returned 35%, 48% 50% 37% for that period.

Where can I find these funds? I'm currently investigating my super options as part of a general review of my finances and insurances.
I have super scattered around in a number of funds, all of which are pretty ordinary performers.
I want to roll them up into one fund (~90K). I have looked at a couple of options that both Westpac & St George have suggested, neither have me terribly excited.
I have thought about SMSF but have a very limited knowledge of the stockmarket (improving on this tho).
Fees (entry/exit) mean that if I do put it in one of the funds already suggested I really need to leave it there for about 5 yrs, even if it is not performing.
Can anyone suggest a fund that they are happy with and that is and has been performing well?
ab

 

[Garry K]

Hi Astro
The funds I quoted are:
AMP Small Co Fund
Challenger Small Co fund
Deutsche Australian Small Co fund
ING Emerging Companies fund (closed to new investors)
Perpetual Small Co fund

They're all quality fund managers.

Disclaimer: This is not advice, speak to your own adviser

You will fund them in some Master Trusts.

GarryK

 

[Kevmeister]

Colonial First State have a developing companies fund (Colonial First State Developing Companies Fund), a Future Leaders Fund, and a multi-manager Firstchoice Australian Small Companies Fund.

Entry fees should not be a real consideration in practice. I used Neville Ward Direct as a discount broker when I started my MLC Masterkey super fund and they rebated the entire 4% or 5% entry fee back to me in the form of additional units in the fund. And they are not the only one. Just use an adviser or fund broker who will rebate you the entry fee - they still get trailing commissions on the investment.

This should certainly lower the necessary investment time frame and enable you to switch if necessary. You will still pay buy/sell spreads on the entry and exit of an investment, however. Using the Firstchoice Australian Small Companies fund as an example, if you put in $10K and immediately withdrew it, the buy/sell spread would be you'd get back only $9960. In other words the buy/sell spread in this example is around 0.4%. But $40 is small potatoes compared to the 4% entry fee you'd be paying each time.

BTW, generally your $ will also be eroded slightly by the buy/sell spread if you switch between investments within the same manager (eg. switch from Australian Shares to Property Securities).

I reiterate Garry K's disclaimer.

 

[Lplate]

I looked some months ago and went for ARF Personal Super - not small but no entry and low mgt fees. Safe - got to think about the longer term too. Flexible in that you can choose your own investment areas/risk and purchase a share portfolio too if u like.

I'm not in the business of giving (or charging for) advice - ie this opton suited my needs and is a personal view only etc etc .