Rabo EFT tracking ftse 100

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noelfitz

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I am thginking of investing in Rabo eft tracking ftse 100, if such a thing exists. I believe the fees are small and the management transparent.
Is this a good idea, if not what should I do with a few bob?
 
I would suggest that the first thing you do is invest some time in learning about investing, so that you are actually in a position to decide what is best for you.

You are asking about a fund, that you are not even sure exists and yet seem to know about the fees on it, how can that be?

No one is going to give you the kind of detailed advice you are seeking on a forum and you'd be crazy to rely on such advice from an unknown source in any case.
 
Jim2007,

thank you for your reply, it makes sense.

I agree that the fund I was asking about does not exist, as I have since learned. However asking questions here clarifies my thinking.

Basically from years back I have investments, which I will leave alone for the most part, but with low interest and high Dirt I want to leave less money on deposit.

I like to mix investments, so now I am thinking of:
1. Deposit with KBC at 2.45%;
2. Standard Life managed funds, mixed assets (approx 1.25% charges);
3. Tracking fund - Rabo/Blackrock (MSCI Europe Index).
4. Shares in a company on FTSE 100, pharmaceuticals, good divident.

Do these make sense? I would appreciate comments, before I finally decide myself what to do.
 
noelfitz said:
I like to mix investments, so now I am thinking of:
1. Deposit with KBC at 2.45%;
2. Standard Life managed funds, mixed assets (approx 1.25% charges);
3. Tracking fund - Rabo/Blackrock (MSCI Europe Index).
4. Shares in a company on FTSE 100, pharmaceuticals, good divident.

Do these make sense? I would appreciate comments, before I finally decide myself what to do.
Click to expand...
I think that’s a good selection, i.e. cash (KBC deposit) – it won’t make you rich but it will cut out down on portfolio volatility and pays interest; foreign developed market equities (Standard Life managed funds); domestic, i.e. euro equities (MSCI Europe Index); and foreign income and cap gains (i.e. dividend paying FTSE100 company) - although with an FTSE100 company you are to some extent duplicating an asset you probably have in your SL managed fund .
Some of those MSCI Europe indices also include UK and Swiss, i.e. non-euro, shares that may also be in your SL fund, so be careful about doubling up. It might be prudent to go for eurozone only index (also eliminates currency risk). Maybe cut down on the allocation to the KBC cash deposit and also go for a eurozone property fund, if you’re in it for the long term and think the property market has bottomed out? Then you’re diversified over five asset classes. [Disclaimer: The above is comment / observation and is not a recommendation to follow any particular investment strategy or to buy / not buy any particular fund or stock.]
 
Pmu

Many thanks.

I know I will duplicate or triplicate, as the stock in the FTSE 100 I have in mind ( I do not think I am allowed mention it here) is quite prominent in my Euro equities, and also (perhaps) in Standard Life. But I think it is a solid company and the amounts in all these investment will vary. Property is in SL, so is considered in my plans.

I also have other managed funds, most of which are doing OK and recovered since the 2008 collapse.

I may not be in any of this for the long haul, as I am old!!

But I think I will go for what I suggest.

I realize your reply is not a recommendation. Even my late mother's recommendation was only half right, as she told be with Guinness and Bank of Ireland shares you will never go wrong!!!

Once again, thanks you.
 
noelfitz said:
Jim2007,

thank you for your reply, it makes sense.

I agree that the fund I was asking about does not exist, as I have since learned. However asking questions here clarifies my thinking.

Basically from years back I have investments, which I will leave alone for the most part, but with low interest and high Dirt I want to leave less money on deposit.

I like to mix investments, so now I am thinking of:
1. Deposit with KBC at 2.45%;
2. Standard Life managed funds, mixed assets (approx 1.25% charges);
3. Tracking fund - Rabo/Blackrock (MSCI Europe Index).
4. Shares in a company on FTSE 100, pharmaceuticals, good divident.

Do these make sense? I would appreciate comments, before I finally decide myself what to do.
Click to expand...

Nobody can tell you if this makes sense or not (although I suspect it does not) because we have no idea of what you are trying to achieve - the first consideration is that you never take on more risk than you need in order to achieve the objective and the second is to realize that that the biggest enfluence on portfolio performance is asset allocation not instrument selection. Age plus objective are key factors in determining asset allocation and it in turn should lead to the selection of appropriate instruments.

All we know from your posts is that you are probably trying to achieve a better rate of return than what you receive for your money on deposit, are old and may not be in it for the long run. All of which means that a total asset allocation to equities of around 25% would be appropriate, beyond that you are engaging in a high risk strategy that may or may not do well, in other words a high element of luck!

For an older person I'd be expecting to see one or two blue chip ETFs such as say a STOXX 50 yielding good dividends at a TER of about 0.25%, medium term bonds or bond funds! some long term bonds or bond funds and cash or money market products.
 
Jim2007,
Thank you so much for your reply to me and I appreciate it and your expertise. I will consider your suggestions carefully.


Where could I get an ETF as you suggest?


You suspect my suggestions may not make sense. However leaving money in the bank is losing it, as returns would probably be less than inflation.


I intend to continue investing in a KBC deposit (2.45%). In the SL funds MyFolio II and III funds are mixed, with equities comprising 25% and 41% (resp.). I can change the balance to have more of MyFolio II, which is more cautious. These SL funds have a TER of 0.05% and includes Cash, bonds, equities, property and absolute return strategies.


The tracking fund I suggest is very like your idea of a blue chip ETF, as the fund tracks the MSCI Europe Index.


Investing some money in one FTSE 100 stock seems reasonable. The amount can be limited, but it is nice to receive periodic dividends.
 
noelfitz said:
In the SL funds MyFolio II and III funds are mixed, with equities comprising 25% and 41% (resp.). I can change the balance to have more of MyFolio II, which is more cautious. These SL funds have a TER of 0.05% and includes Cash, bonds, equities, property and absolute return strategies.
Click to expand...

No they don't! They have a total fund charge of about 1.2% to 1.3%, but since they are "funds of funds" the true TER could be as high as 4% or even higher, so a very poor offering.

STOXX ETFs are widely traded on European stock exchanges, so any broker that allows you access to these markets would do. To avoid a double FX exposure, I think about buying them on a Euro exchange such as the DAX for instance.

One other aspect to consider is Irish taxes, of which I know little, but if you search you will find a couple of threads on the subject.
 
Jim2007,


many thanks for your reply.


After seeing a previous reply about TER values, I phoned SL and the person I spoke to did not know about TER values, so I was put through to a senior person, who gave me plenty of his time and explained that the TER was very small. 0.05%. How can I find out the true position, since you and SL give me different answers?

I think it was Warren Buffett who said he only invests in things he understands. This sounds like good advice, but now I am getting lost and confused.


So I am thinking of sticking to my original plan, but, having read your replies, I shall change my allocations, and invest more in cash, and an EFT.

For EFTs, or equivalents, I am thinking now of Rabo/"BlackRock GIF Europe Eq Index A2 EUR Acc", matching the MSCI Europe Index, as originally suggested, and also Davy/"db x-trackers Stoxx® Europe 600 UCITS ETF (DR) 1C (EUR) ". But I will have to try to study and find out more.



How do I buy on a Euro exchange?



Again, am I being foolish?



Please reply as I appreciate all the help I can get.
 
Jim2007,


many thanks for all your reply.

I am trying to find out about TER values.

In “askaboutmoney” in 2012 Offiah wrote:
“MyFolio is a bundled solution and thus the MyFolio III fund buys the zero percentage share class of the underlying funds. Thus there is no double charge.… in Ireland the MyFolio funds don't buy units in any MyFolio mutual fund. Also the underlying funds that the Irish MyFolio funds invest in incorporate more extra expenses than in the UK. Thus TERs are lower.”


So this implies TER charges may not be a problem.
 
First of all rely only on the published information about the product because that is all provider has to adhere to. Now the documentation states that these products have a management charge of 1.2% - 1.3% (FT suggests a net expenses ratio of 1.75% on MyFolio II), management charge is usually disclosed when TER would look bad. So if the company can offer these funds at a such a low TER they would be shouting it from the root tops, not keep the fact hidden.

As a comparison Vanguard one of the best providers of cheap ETFs usually have TERs of say 0.30% down to about 0.10% and SL are offer you managed funds at 0.05%! Seriously, if they could do that they would be advertising on their site at least.

At the end of the day you must decide what is appropriate for you.
 
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