Hi all,
I was hoping to get your thoughts on a fund available through my super.
There is a fund available called Perpetual Wholesale Geared Australian Share Fund.
The fund essentially gears up (for free) and allows me double the exposure to the shares they have invested in.
The management cost is a percentage of gross asset value, so 1.17%, at a gearing level of 50% becomes 2.34%.
Now I know this is a very high fee, but to gain double the exposure, with no risk of a margin call, it could almost be worth it…
I am not the greatest fan of their stock picks, with a significant exposure to big banks, top 10 below:
• Commonwealth Bank of Australia 6.6%
• Woolworths Ltd 6.5%
• ANZ Banking Group Ltd. 6.0%
• Boral Limited 4.7%
• National Australia Bank Limited 4.5%
• Premier Investments Limited 4.4%
• QBE Insurance Group Limited 4.2% Z
• Energy Ltd. 4.1%
• Westpac Banking Corporation 4.1%
• Reece Limited 3.8%
But I was wondering what you thought about the concept, and the fund as a whole, in order to get greater exposure at a fairly decent rate?
Cheers!