Buying NZ top 50 and All Ords

[peat]

I couldn't find much info on how the possible profits of the 'lending securities programme' were going to be distributed but it did make mention of further 3rd party costs to manage the programme. From this it seems like the ones with the most to gain are smartshares/NZX since it would appear I will be taking the possible losses as well as mangement fee as well and it doesn't explicitly state I will get all the remaining profits, should there be any after the unspecified 3rd party management fee is taken.

yes exactly.... it really does appear as though they are just 'slipping in' the amendment to the Trust Deed hoping no one will notice so they can increase their skimming off the top doesnt it.
Of course you could email them (Smartshares) and ask or even put the question to the named Trustee and see what they have to say though I suppose they have no more clue than you or I , they simply know the bounds of their duties and they will either be allowed to relinquish the stock or not. But smartshares might be keen to clarify this point on the basis that if this issue is left open like it is now then the only conclusion we can draw (in view of the potential risk) is the worst one.

edit : I'm intrigued enough myself so I've sent off an email to smartshares@smartshares.co.nz myself.

[arcticblue]

It would be great if you could post the response you get so we can all know what their plan is.

[Jay]

I would also like to see the response having bought some a little while ago!

[Lego_Man]

75 basis points is a ripoff...

[peat]

they have replied saying

We are putting some information together for you regarding this and will get back to you shortly. We take questions about such matters extremely seriously as we want to assure our investors that every step has been taken to protect their assets. Therefore we would like to provide you with a thorough explanation of securities lending and how it will affect the fund

they say they will send me this info tomorrow

[Jay]

Thanks peat for keeping us updated

[RRR]

Article in NZherald today-

http://www.nzherald.co.nz/business/n...ectid=10675271

Thanks peat for your work.

[RRR]

Another article of interest.

http://www.cnbc.com/id/39309280

[Jay]

Hmm... so outside of managed funds what is the alternative if you want a mainly hands off approach for an initial small outlay.
I spilt my investment (for my 3 year old son) between Smartshares and GMI

[whirly]

I think someone else may have already mentioned TEM Templeton Emerging Markets. Buying as the price comes back up thru the 90ma has worked for me so far and allows time in between to save more cash. Whether this will continue to work who knows, so it cannot be considered a hands off investment.