just your standard fund of funds type deal.
you give Investment Advisor your wad of cash, they pick a mixture of different funds that they think suit the investor profile (eg. BlackRock Growth, Goldman Geared, UBS Income Fund etc etc), and skim a fee.
Fee's included: entry fee approx 1%, management fee (this is broken down further but i cant remember all of the little components) approx 2% , exit fee 1%.
The IA's performance pretty much just achieved market returns..... before fees.
I haven't fully decided what im going to do for her (ahem, what she is going to do with her own money *cough*)
Luckily for her, she is well into pension drawing age, and this money doesn't represent her entire wealth, so the pressure to preserve capital at all costs isn't as strong, although it will be a major influence in my decision making. She does however need to draw some income from the fund.
However, If I had to do it all tomorrow, i'm thinking cash products are rubbish at the moment due to low rates, so will probably look towards some of the stronger dividend paying equities.
Maybe a 70:30 split Dividend/Growth.
WBC and ANZ (ANZ now that they have done their cap raising) look attractive on both a growth potential and dividend yield basis.
She already holds a decent chunk of BHP and WPL seperate to her pension fund, I may look to increase on these as I'm quite bullish on commods in the next 2 years.
Outside of that, MQG on a pull back or a run up, has to move either way, not comfortable where it is as the moment, CSL as a market leader Biotech and then maybe some mid-cap miners (producing) for a bit of bang for buck. Maybe a cheeky explorer or two for 1-2% of the folio.
Leave 10% of folio in cash as a opportunities slush, in case something jumps out that can't be ignored and needs to be acted upon immediately.
Naturally, i'll be running some standard portfolio modelling to ensure the quant side of me is as happy as the qualitative side is.
And there you have my thinking, feel free to shoot me down/constructively critisize all this. (except my spelling/grammar). Would love to hear some peoples thoughts. No Advice given/taken of course.
Nothing will be done until I am licensed (RG 146) or before July 1 so plenty of time to think more about it.
Edit: Seeing as i'm sitting here alone at the office at 10 to 9 on Sunday morning....
Re: ETF's, Index Funds: Not a fan. I think with buying a 'wrap up/all in" package you end up picking up the tab for the stocks that underperform with in the index. Obviously you can't go through the Index fund and go 'well, XYZ is doing rubbish, give them the flick'. You can match the market yourself pretty easily, assuming you have a bit of time to do the research. Even easier given the weightings of the biggest 10 XAO/XJO components.
Anyway enough from me