REVscene - Vancouver Automotive Forum

suzuka84 · 01-27-2011, 06:05 PM

Anyone getting sick of working and constantly following tickers?

I know I have trouble sustaining growth in my portfolio so it might be time to liquidate and place it with professional money managers. I can do mining and do it well but I'm not set up to do high-tech, bio-tech, financials, manufacturing etc. Work is nothing but a rat race and I see fund managers outside the banking industry having no issues with averaging annualized returns of 20%.

I could as of today liquidate 6 figures in holdings, keep a big to dabble here and there and place the rest with a investment fund (we're not talking plain jane RBC mutual funds here).

I will never have enough money to buy all the companies I want and that's just taking into account my own industry. I can't imagine the mind boggling calculations the portfolio managers do with deploying $1b.

suzuka84 · 01-27-2011, 06:11 PM

Sorry, forgot to add I already have my investment fund picked out. I want to know if there are any that you guys love.

Carl Johnson · 01-27-2011, 06:28 PM

One thing to Keep in mind when putting your hard earned money with fund managers is to look at how they get compensated. Most bank's fund managers get paid on how much assets are under management. Therefore, they spend lots of money and time on advertising (expense that is coming out of your returns), but does not pay nearly enough attention on the fund's performance.

You want to have your money with somebody who gets paid when you get paid. So only when the fund is generating returns that is above the benchmark indexe that it tracks. So it's very important to take the time and read the prospectus and any legal documents they present you. "Past performance is not indicative of future results." This phrase sounds familiar? Because it is absolutely true.

Personally for me, I love managing my own money. No one in this world cares more about my personal finance than me.

CT10 · 01-31-2011, 08:46 AM

Quote:

Originally Posted by Carl Johnson

Personally for me, I love managing my own money. No one in this world cares more about my personal finance than me.

I can't agree with this more.

I've been in this industry a few years and have worked with different planners and advisors, and although moost are very professional at it, no one will care about your own money more than you.
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suzuka84 · 02-04-2011, 10:46 PM

you guys are right - no one will management better than you yourself.

There are many funds out there that have historical annualized returns of 20% so I figure I would place my money with them. If I did that, what the hell would I do with the spare time at work. I might employ leverage to juice the returns even more in the current funds.

As of today, the longs are paying off so I'll stick to self-directing for the time being. I have zero diversification so live and die by the sword.

Carl Johnson · 02-05-2011, 11:52 AM

What's the fund's return in 2007 and 2008? I hardly care about fund's performance in bull market because everyone is a fucking genius in bull market. Bear market separates the men from the boys.

jameswift · 02-05-2011, 12:49 PM

Here is a problem. 20% consistently is a difficult task. There are some great brokers out there but most of them aren't as good as they may appear to be. Even the ones that are good are like you and I in that they have their strong and weak points.

Managers that deploy $1b or more usually have to settle for a lot of things, which is why they can't do the same things that a smaller account can do. This is why as a fund gets bigger, it's harder to move and the number of restrictions imposed on that fund are huge. It's frustrating.

Consider for a moment though, a broker that can make 80% return per year. They bust their ass for their clients to make 80% year after year after year. Why bother? If someone is that good why not just get rid of the stress and do it yourself?

This is why I don't have a fund and don't care. I wanted to in the beginning which is why I took all my courses to be a fund manager and then once I got good at trading, I thought why bother? I can make more money trading at home without the stress of clients.

I'm not saying to go through with the whole process, sometimes it can be a great way to ease off some of the stress but if you're already doing well trading, you're probably better off to keep doing what you're doing and learn more in the process. Just like anything, especially trading, every day you have to learn something new to keep up.

suzuka84 · 02-06-2011, 09:03 PM

there are lots of investment funds that can deliver stellar returns, the problem with the funds is the high management fees they charge. My advisor recommended a few of them and you can't employ leverage to amplify the returns. It'll also cost a minimum investment of $150k.

waddy41 · 08-27-2011, 10:23 AM

I'm looking to put my RRSP into a more conservative fund while managing my own investment account and TFSA.

What's wrong with the "plain jane" mutual funds offered by the banks? Right now I'm looking at the RBC dividend fund.

Suzuka, which funds were you looking at?

4444 · 08-28-2011, 02:32 PM

Quote:

Originally Posted by waddy41

I'm looking to put my RRSP into a more conservative fund while managing my own investment account and TFSA.

What's wrong with the "plain jane" mutual funds offered by the banks? Right now I'm looking at the RBC dividend fund.

Suzuka, which funds were you looking at?

could you not get as equally good dividend fund through an ETF? i know there are some very good high dividend paying bank pref share ETF's - much lower mgmt fees

Walperstyle · 09-01-2011, 12:16 PM

TD dividend growth

highfive · 09-01-2011, 02:17 PM

I honestly prefer to manage my own money. But how much percent is a high dividend paying fund or ETF?

IMO there are a lot of good Canadian companies paying high dividends yields. Just the top of my head, BCE and Manitoba Telecom pays our a yearly 5% yield.

Canadian banks averages 3-4% already. Companies like George Weston or Loblaw is a pretty solid stock to hold.

waddy41 · 09-01-2011, 04:30 PM

CDZ (Claymore CDN dividend ETF) is paying 3% and the price doesn't move much.
RBC mutual fund averaged 5% of growth per year

Canadian bank stocks are paying a little over 4%..I'm thinking to just put my RRSP into BMO..also I can sell covered calls to increase my return...

Jermyzy · 09-01-2011, 06:06 PM

Two dividend stocks I'm carrying right now in my portfolio

BNS - ~4% dividend
PBH - ~7% dividend

Drow · 09-06-2011, 04:18 PM

Quote:

Originally Posted by waddy41

I'm looking to put my RRSP into a more conservative fund while managing my own investment account and TFSA.

What's wrong with the "plain jane" mutual funds offered by the banks? Right now I'm looking at the RBC dividend fund.

Suzuka, which funds were you looking at?

Imo, bank mutual funds grow at a really slow rate, but if youre interested, now would be a decent time to buy. Most if not all MF's are in the down atm
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Jermyzy · 09-07-2011, 06:37 PM

Quote:

Originally Posted by Drow

Imo, bank mutual funds grow at a really slow rate, but if youre interested, now would be a decent time to buy. Most if not all MF's are in the down atm
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I only hold two mutual funds in my portfolio, one of which is the RBC Global Precious Metals fund. Since I bought into the fund in 2008, it's approximately doubled since then, and they paid out a whopping 15% capital gains last year. But my other mutual fund is a Canadian Index fund which is obviously pretty stagnant right now.