InvestSMART Group Limited · ASX:INV
InvestSMART — How to Assess your Managed Fund webinar (August 2023)
17 slides from InvestSMART's conference presentation, Aug 2, 2023
Slide 1: How to Assess your Managed fund
How to Assess your Managed fund And how to choose your next one 2 August 2023
Slide 2: Disclaimer
Disclaimer The information presented in this webinar is general in nature only and does not take your personal situation into consideration. Please ensure that all relevant disclosure documents including the PDS and TMD have been read. If unsure about making an investment or if the investment is sui
Slide 3: The big numbers… and problem
The big numbers… and problem 74% -2.53% 1.54% the percentage of the average the average fee funds that return underperformance charged by these less than the funds industry standard benchmark
Slide 4: Why does this happen?
Fees Benchmarks don't have fees – therefore managed funds are starting behind the 8 ball Why does Career risk this happen? To get a different return from the market you must be prepared to do something different. Being wrong with everyone else is fine, but being wrong on your own... Size The bigger
Slide 5: Does your comparison graph look like this?
Does your comparison graph look like this?
Slide 6: What to do with an underperformer
Check your CGT position so if/when you sell you know what you are in for What to do with an underperformer Look for asset class comparable options Compare the fees Look to switch or at least allocate new funds (including dividends) to your new found fund
Slide 7: The #1 thing not to do when selecting a fund
The #1 thing not to do when selecting a fund Do not select the highest performers "The greatest enemy of a good plan is the dream of a perfect plan. Stick to the good plan" "Past performance is no indicator of future performance" SPIVA Persistence Scorecard proves this https://www.spglobal.com/spdji
Slide 8: Instead, focus on costs
Instead, focus on costs "The miracle of compounding returns is overwhelmed by the tyranny of compounding costs" - John Bogle
Slide 9: When would you use managed funds?
When would you use managed funds? • Illiquid markets/assets • ETFs do not hold small caps • Therefore, an allocation of global and ASX small cap funds could help your diversification
Slide 10: How do you select a fund?
"I can afford not to be the best investor in the world but I can't afford to be the worst" How do you Morgan Housel select a fund? The Psychology of Money Aim to be average You can outperform most professional investors by simply focusing on fees and getting the index return.
Slide 11: Assessing an ETF
Assessing an ETF Asset Fees Size/ Performance Class Liquidity "Does this give me the What is the total cost to Am I easily able to How closely does this transact? ETF track its index? exposure I am looking you as an investor? for?" Tax InvestSMART Location Bootcamp For a deeper understanding of thes
Slide 12: Planning for the unknown
Planning for the unknown "A good portfolio is more than a long list of good stocks and bonds. It is a balanced whole, providing the investor with protections and opportunities with respect to a wide range of contingencies." Harry Markowitz
Slide 13: The efficient frontier
"The efficient frontier is the set of portfolios that offer the highest expected return for a given level of risk." - Harry Markowitz Conservative Balanced Growth High Growth Australian Equities International Equities Property & Infrastructure Fixed Interest Cash
Slide 14: Your performance also comes down to you
Your performance 68% of investors also comes underperform the funds they're down to you actually invested in – DALBAR study "Your success in investing will depend in part on your character and guts, and in part on your ability to realize at the height of ebullience and the depth of despair alike tha
Slide 15: Building a service on fundamental principles
Building a service on fundamental principles Why choose InvestSMART? Low fees starting from Passive investments 0.55%pa capped at $550 Automate Diversification across and contributions/withdrawals within asset classes to avoid market timing
Slide 16: Book a call with the team
Next step Book a call with the team For • InvestSMART Professionally Managed Accounts • Intelligent Investor Schedule a call with managed funds Mitchell Sneddon For • Bootcamp for business corporate licenses Schedule a call with Tom Wilson
Slide 17: Thank you
Thank you Contact: Mitchel Sneddon Tom Wilson invest@investsmart.com.au Head of Portfolio Services Investor Education & Product Specialist www.investsmart.com.au
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