Superannuation funds

[Springbok]

Some more info I found in my research:

Advance Asset Management, www.advance.com.au, a member of the St. George Group, worth investigating their super funds.

For information about super funds, look at www.advance.com.au/fund/super/default.asp?orc=funds

As a multi-boutique manager, Advance utilises partnerships with some of the smartest names in funds management to deliver consistently superior performance. With over 20 years of experience hand-picking the best boutiques and specialist managers, Advance offers unparalleled expertise and insight for clients through our unique suite of single-manager and multi-manager investment products.

What I find of particular interest, is that the 3 executive directors of one of their investment partners, Maple-Brown Abbott, www.maple-brownabbott.com.au, have all worked for Allan Gray in South Africa before:

- Mark Herdman, past chief operating officer of AG (1987 - 2004) is now COO at Maple-Brown Abbott in Sydney;

- John Kightley, AG 1981 - 1992, is now MD at Maple-Brown Abbott in Sydney;

- Garth Rossler, AG 1984 - 1997, is now head of research at Maple-Brown Abbott in Sydney.

MBA describes itself as an investment management company specialising in managing wholesale funds. The company was established in 1984 and is wholly owned by the founders, directors and staff. Funds under management as at 31 December 2006 total $20.0 billion with $3.5 billion in seven wholesale trusts and $16.5 billion in discrete mandates.

MBA applies a value-based investment style by investing in companies that represent relatively good long-term fundamental value with portfolios exhibiting strong value characteristics relative to market averages (very much like Allan Gray in South Africa).

They manage the Advance Imputation Fund, Advance Sharemarket Fund (closed to new investors) and the Advance Australian Geared Equity Fund.

The MBA Australian Equity pooled superannuation trust (PST) is for investors wishing to participate in a tax paid, Australian equities investment. The Trust achieves its Australian equities exposure by investing in the Maple-Brown Abbott Australian Equity Trust ("AET"), a registered managed investment scheme of which the Responsible Entity is Maple-Brown Abbott Limited. The Trust commenced operation on 4 January 2001 and is open only to Australian regulated superannuation funds, approved depost funds and pooled superannuation trusts. Maple-Brown Abbott's investment objective for the Trust and the AET is to outperform before tax, over rolling four year periods, the S&P/ASX 300 Accumulation Index ("Benchmark").

The MBA Australian Equity Trust's performance since inception on 31 Dec. 1992 is 16.7% per annum. Click here for more information.

PS - The above is not intended as investment advice, just sharing of information. Each investor must do his/her own research.

Edited May 17, 2007 by Springbok

[woodag]

. . .

They manage the Advance Imputation Fund, Advance Sharemarket Fund (closed to new investors) and the Advance Australian Geared Equity Fund.

. . .

Forum regulars may remember recent comments about the difference in fees charged by funds run by the likes of banks, and other superannuation funds such as 'industry funds'. The funds mentioned above have management fees around 2% p.a.* while the management fee for a typical industry fund may be 0.5% or less.

Of course, depending on how they perform, the extra cost might prove to be worth it, but my take on that is that only time will tell.

* There is also the matter of entry fees. Being in a generous mood I will concede that you may be able to negotiate away the 4.1% Advance entry fee.

PS - The above is also not intended as investment advice.

PPS - Trivia for the day: St George Bank CEO Gail Kelly is from SA.

http://www.theage.com.au/news/business/ceo...9724845747.html

[Springbok]

The funds mentioned above have management fees around 2% p.a.* while the management fee for a typical industry fund may be 0.5% or less.

Of course, depending on how they perform, the extra cost might prove to be worth it, but my take on that is that only time will tell.

* There is also the matter of entry fees. Being in a generous mood I will concede that you may be able to negotiate away the 4.1% Advance entry fee.

i agree with woodag - those fees are on the steep side, however I am prepared to pay for superior performance.

For those of you with speakers or headset, you can listen to webcasts by Maple-Brown Abbott's people at www.advance.com.au/fund/portfolio_managers/default.asp - simply scroll down to the Maple-Brown Abbott section and click on Dougal Maple-Brown and John Kightley. What they describe could just as well be Allan Gray's investment philosophy and processes: conservative, contrarian, long term focus and value-based style. Gives you a good idea of why these guys are so successful.