Managed Funds Customer Reviews - RaboDirect NZ

Reviewer: Andrew

To enable further analysis of managed funds, may I suggest that all of the data available for them on your website currently (i.e. buy/sell price, performance, fees, etc) be made available via a downloadable Excel file. This would enable potential investors to sort the funds according to their own criteria and view all criteria simultaneously. I realise this can be done manually, but it's very time consuming!

Reviewer: Todd

Hi there, I'm interested in the term advantage fund. It specifies no fees but is there anything a potential investor should be aware of?

Jill Rudings, Customer Service Manager: Hi Todd. That’s great that you are interested in the Term Advantage Fund (TAF). The TAF is very much like a term deposit, but designed as a Portfolio Investment Entity (PIE) so you may reap the benefits of a 28% tax rate if you are in a high tax bracket. To answer your question, there are no fees unless you opt to exit the Term Deposit prior to maturity and then there is a charge of up to $250.00, but do feel free to read our FAQ’s for all the information on this product.

Reviewer: Bastiaan

Hit there. Given the downward price movement in the Tyndall Income Fund (more than some of the highest risk) might it be time to assess it's medium risk rating? With Asteron winding up its funds will you be introducing some other low/medium risk funds to your platform? Not a lot of choice.

Reviewer: Garth

I have only had Managed Funds for one month - early days. But I didn't expect to drop 7.5% on my investment in that short time. My 'confidence' has been shaken! What is happening out there?

Michael Corteney, Managed Funds Executive: Thanks for your comment Garth. Given the aggressive nature of some of the Funds available via RaboDirect, these can be subject to a certain degree of volatility. These are the type of funds that while they can deliver very good returns in some instances, it also pays to be mindful of the potential downside risks associated with them. You mention that it is ‘early days’, and I think this is an important comment, particularly with regard to the more aggressive Funds offered, because as they can tend to fluctuate in value in the short-term, they are generally designed for longer-term investment timeframes. With a seemingly uncertain economic environment at present, including Greece’s debt concerns and indications of a potential slowdown in China’s growth, it is difficult to comment on when some stability may return.

Reviewer: Winnie

The process of Managed Funds either in purchase or in sale takes too long. It can take almost one week to settle the transactions although it indicates in FAQ that it only takes 1-2 working days.

Reviewer: Dilan

Hi Mike, just want to find out why the Brooke Alpha Fund has been put on hold?? It's been on hold for quite a while now.

Mike Heath: The RaboDirect Investment committee has placed this fund on hold pending further analysis by Morningstar.  There have been significant personnel changes at Brook and we are awaiting the output of Morningstar’s full review due March 2011.

Reviewer: Sam

interested to know whether the entry fees charged on managed funds are tax deductable?

Mike Heath:Thank you for your inquiry. Tax is a specialist area and RaboPlus does not provide tax advice. RaboPlus is aware some advisers consider that entry fees may be deductible, depending on the particular investor’s personal circumstances. For a definitive answer to your question you would need to obtain specialist tax advice.

Reviewer: Dave

Although the managed funds are easy to set up with Rabobank, they are also very luring. So far I have invested in 6 different funds through different companies, and all have constantly decreased. Other investments (not through Rabobank) have performed a lot better.

Reviewer: Vicki

Hi Mike,have you managed to explain the intricacies of exit prices for the the cash fund?

Mike Heath: Hi Vicki, I can’t recall you having asked this question before, but if you did my apologies for having missed it. There are no exit prices for the Cash Advantage Fund i.e. the buy price and sell price are the same and reflect the same unit price. Does that answer your question?