Listed Managed Funds

[Jay]

Have approx $5K now (with say $100 month) to invest for my 3 year old for University fees etc.
Are the above a good option - something I do not have to "manage" too much
Or any other ideas - and no not the next big oiler/gas/nickle/gold producer etc etc.
Want to avoid Managed Funds as such due to fees etc.

Oldrider had mentioned PMC & AFI to answer a similar question awhile back.

[peat]

AFI has a pretty good rep

I guess you could look at the Smart Shares options too
http://www.smartshares.nzx.com/about

or if you want to go global something like :

Bankers Investment Trust
RIT Capital
British Empire and Securities
Templeton Emerging Markets
Fidelity European Values
Theres no shortage of ETF's (Exchange Traded Funds) these days but I just thought I would throw a few names at you so you can investigate them yourself
(in other words I am not recommending these just increasing your awareness)

Most stockbrokers will have recommendations too so maybe contact Craigs or one of the other brokers

[Jay]

Thanks Peat

Will have a look at each

[graham]

Hi Peat,
I'm interested in UK investment trusts as I need to deversify away from NZ and Australian shares. Do you have experience in buying and selling these. I'm thinking while the historical exchange rate is favourable and the world is coming to an end now just might be time to test the water. Any other names I could research would be appreciated.
Thanks

[OldRider]

i still hold to my former opinion, British Investment Trusts unless listed on NZX, TEM for example, have brokerage costs
that are too large I think for your plan.

Another choice would be the State Street funds eg. STW ,an ASX 200 index fund.
http://www.spdrs.com.au/
I have been gradually adding GMI to my own holdings- might have better growth prospects.

My situation is the opposite to yours, but probably needs the same actions,
at my age I am tired of the time it takes to run my investments, and can fnd more
fulfilling things to do, so have an increasing amount of funds in the trusts and companies I have
mentioned.

[voltage]

Good points mentioned. Try to stick with funds listed on aussie or nz stock exchange otherwise you need to look at custodial arrangement. Can be very expensive to sell UK direct on your own name. As noted an number of UK listed trusts are on the NZX (eg TEM best way to access emerging markets). Old rider mentions ETFs like STW - very low fees and great diversification. there are so many options keep it simple and do not rely on one stock.

[Arthur]

The managed funds costs may be an issue if you had $50,000 to invest, but your fear of paying somebody is likely to be false economy. The listed funds also charge a (smaller) management fee and the brokerage fees will negate many "fee saving" benefits and restrict your diversification. In addition the listed funds often trade at a discount to asset backing - good if you are buying bad if you are selling and the spread has widened. Some even trade at a premium when the equivalent managed funds trade at asset backing. In addition there may be tax advantages to the managed fund options and they allow cost effective "dollar cost averaging"

[Jay]

Not so sure Arthur re the fees $30 brokerage on $5K is well short of the 4-6% entry fee of alot of funds, however, as you mention both have on-going management fees with the LMF a little less I would assume as well.
Do have the advantage of $ cost averaging I admit, but then again would this not attract the entry fee as well?
If I went the LMF way, I would save up before adding to the existing shares or in fact investing in another as may have a lump sum from time to time.

Thanks for your thoughts people

[lou]

Also you should check out ASG who do investment/scholarships plans for people in your position. Could be what you are looking for.