Managing ETFs
It is hard to go past the advantages of low-cost, diversified exchange traded funds (ETFs).
Most asset classes are on offer and it is becoming popular to build a portfolio of ETFs. Lonsec Stockbroking has launched ETF strategic portfolios for five risk profiles, from defensive to high growth, for investors and financial planners.
The asset classes include Australian equities, international equities, property securities, fixed interest and cash.
The portfolio is reviewed and rebalanced twice a year. "It is particularly appealing for accumulators as it presents a low-cost way to achieve direct exposure to asset classes, as opposed to the traditional investment model using managed funds," says Geoff Beeston, Lonsec Stockbroking's investment adviser.
He says typical ETF investors hold financial products for more than 18 months and these portfolios are relatively easy to manage, reducing administration time for financial advisers and enabling them to focus on achieving their clients' investment objectives.
Global opportunities
K2 Asset Management has launched the K2 International Opportunities Fund, a high-conviction equity fund with a concentrated portfolio of 20 to 40 companies.
K2 says the fund invests in companies that are "involved in 'the internet of things', health and wellness (globesity) and reflation" and include Google, Walt Disney, Eurofins Scientific, SPT Energy Group and Sumitomo.
The fund has 49% invested in US markets, 15% in Europe, 15% in UK, 5% in Japan and 4% in China. It will be managed by the K2 international investment team.
K2's main fund, the Select International Fund, has posted an annual compound return of 12.2%pa since its 2005 inception. The fund is a long-only from the long-short manager. It will remain unhedged at all times. The management fee is 1%.
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