Davidson - Managed Funds For Dummies

Managed Funds For Dummies

by Colin Davidson

Managed Funds For Dummies

Published by
Wiley Publishing Australia Pty Ltd
42 McDougall Street
Milton, Qld 4064

www.dummies.com

Copyright 2011 Wiley Publishing Australia Pty Ltd

The moral rights of the author have been asserted.

National Library of Australia Cataloguing-in-Publication data:

Author: Davidson, Colin.

Title: Managed Funds For Dummies / Colin Davidson.

Edition: Australian ed.

ISBN: 978 1 74216 942 2 (pbk.)

Subjects: Investments Australia.
Pension trusts Australia Management.

Dewey Number: 332.6780994

All rights reserved. No part of this book, including interior design, cover design and icons, may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the prior written permission of the Publisher. Requests to the Publisher for permission should be addressed to the Contracts & Licensing section of John Wiley & Sons Australia, Ltd, 42 McDougall Street, Milton, Qld 4064, or email auspermissions@wiley.com .

Cover image: David Koscheck, 2010, Used under licence from Shutterstock.com

Typeset by diacriTech, Chennai, India

Printed in China by

Printplus Limited

10 9 8 7 6 5 4 3 2 1

Limit of Liability/Disclaimer of Warranty: THE PUBLISHER AND THE AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITHOUT LIMITATION, WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES OR PROMOTIONAL MATERIALS. THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION. THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL SERVICES. IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT. NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM. THE FACT THAT AN ORGANISATION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFORMATION THE ORGANISATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE. FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ.

Trademarks: Wiley, the Wiley logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Making Everything Easier, dummies.com and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates in the United States and other countries, and may not be used without written permission. All other trademarks are the property of their respective owners. Wiley Publishing Australia Pty Ltd is not associated with any product or vendor mentioned in this book.

About the Author

Colin Davidson has worked in financial services for more than 20 years, both in Australia and overseas, in London and Asia. A qualified chartered accountant, Colin worked in Hong Kong as a stockbroker selling equities to global and regional fund managers. In Australia, he has managed a major banks online stockbroking business and Australias largest direct managed funds broker. Currently working at one of Australias largest full-service retail stockbrokers, Colin is RG146 accredited and a Responsible Executive managing the brokers financial planning business. He co-wrote the 2005 and 2006 editions of Australias Top 100 Managed Funds .

Dedication

To the family, Louise, James, Ella, Alex, Claudia and Blossom, and to those gone but not forgotten, Jean and Marguerite, go well.

Authors Acknowledgements

Something I hadnt appreciated when writing this book was how much of a collaborative effort the whole process would be. Thanks to Bronwyn Duhigg who, before she left John Wiley, originally approached me to write the book and guided me through the commissioning process. Thanks to Rebecca Crisp for the subsequent direction and always kind words of encouragement, and to Hannah Bennett, the publishing equivalent of a footy coach, expertly guiding from the sidelines. Thanks to Kerry Davies, project editor extraordinaire, for the ever-wise suggestions, who somehow magically pulled everything together. Thanks also to Zo Wykes in the United States for the fresh perspective with the final edits, and to Glenn Lumsden for the great cartoons!

Thanks also to Angus Robertson, financial adviser at Bell Potter Securities, for the technical review of the book. With many years experience advising clients on superannuation and managed funds, Angus brings a tremendous amount of experience to the book. Thanks finally to Louise, who read chapters, offered advice and was given a good excuse to regularly lock me away in the study until Id met my deadlines. Im sure the family enjoyed the peace.

Publishers Acknowledgements

Were proud of this book; please send us your comments through our online registration form located at http://dummies.custhelp.com.

Some of the people who helped bring this book to market include the following:

Acquisitions, Editorial and Media Development

Project Editor: Kerry Davies

Acquisitions Editors: Bronwyn Duhigg, Rebecca Crisp

Technical Reviewer: Angus Robertson

Editorial Manager: Hannah Bennett

Production

Graphics: Wiley Art Studio

Cartoons: Glenn Lumsden

Proofreader: Catherine Spedding

Indexer: Michael Ramsden

The author and publisher would like to thank the following copyright holders, organisations and individuals for their permission to reproduce copyright material in this book:

Page 49: Industry Super Network

Page 70: Standard & Poors Index Versus Active Funds Scorecard: Australia Year-End 2009. www.spiva.standardandpoors.com.au

Pages 131 and 132: Morningstar Australasia

Page 150: BT Financial Group

Page 155: Responsible Investment Association Australasia (RIAA)

Every effort has been made to trace the ownership of copyright material. Information that will enable the publisher to rectify any error or omission in subsequent editions will be welcome. In such cases, please contact the Permissions Section of John Wiley & Sons Australia, Ltd.