Pie funds

[Schrodinger]

http://www.cnbc.com/id/102157205

Thought you guys might find this useful.

[Bilbo]

I'm sure they are awesome if you are one of the lucky ones who picked a fund manager from the winning 4%.

But don't you think it weird that Warren Buffet wants all his money to be put into index funds when he dies. He must know every single high performing fund manager in the entire world, and still, he doesnt trust any of them with his own money.

I guess it is all about risk and the investment horizon. Endowment funds etc have a 100 year plus investment horizon and need to be low risk. Index funds are perfect for them. But even they usually have a portion in core satellite investments. Like most things in life where there are two opposing views at opposite ends to the scale, the prudent approach is usually a hybrid one. Having a small portion of funds in something like PIE's emerging companies fund or Aus small cap growth as part of a balanced and diversified portfolio can generate returns above the market. To write them off as you did is short sighted.

[bull....]

I see the same thing happening in VTG this month...big positive write up in the newsletter, while selling 3 million shares in the last month.

must be a lot of people who get the newsletter but dont have funds invested with them a

[Joshuatree]

Sounds like you're chomping at the bit to start a "KW Nimble Superior Fund" let me know

[stoploss]

Maybe VTG becoming too big in the portfolio at that price , they did buy sub 25 cents .Might be forced due to cap on stake size , or could be lesson learnt on being a major shareholder in a small cap .I say feed the dogs when they are barking ....

[D. Fender]

Maybe a bit cynical. They were very public awhile ago donating to kidscan on the Cambell Live show. Given his funds are all effectively full, there is no real need for him to do marketing so I think he has a real charitable nature.

The Global Fund is still raising money and it is investments into the Global Fund where the first year's fee is paid to charity.

[stoploss]

No, the Global Fund is still raising money and it is only investments into the Global Fund where the first year's fee is paid to charity. At the minimum $25K investment it means $250 will go to charity. All the performance fees (10% of all gains) and annual fees from year two go to Pie Funds.

Or you could just donate $250 to the charity of your choice and invest the other $24,750 in a good fund.

All Pie's funds are closed, unless you can afford to lock away $250K for 2 years, in which case you might get an invite to invest in the new Pie Chairman's Fund, which is a fund of the other Pie funds with a $50K annual fee and with a max. 50% into any single Pie fund.

I would prefer to see any CEO's charitable giving done with his/her own money. Pie Funds made $7m in fees in the year to 31 March 2014, of which I am sure a very decent chunk went to the CEO personally.

It makes no difference to an investor if he chooses to pay the performance fees to Charity , it's money his company has earned not investors money . Also all staff are in PIE funds , so it is an incentive for them not to make
too many TTN's .

[Toulouse - Luzern]

My periodic analysis shows:

If you do a NZ Investment funds review for all funds over $10 using fund finder search on the www.morningstar.co.nz site by 6 month % performance then PieFunds have three funds in the top 9 .

AMP have three funds in the top 9 and Niko, PPS and One Answer have one each.

AMP is 1st, 2nd and 4th.

PieFunds is 3rd, 7th and 9th

Note that PieFunds have a total of just four funds and AMP have 33 funds.

AMP performance over 6 months ranges from their top fund at 17.06% to the low of 1.77%.

PieFunds range is from 14.3% to 4.12% for their four funds.

The 4.12% is for the new global fund with a higher than usual cash component as it invests over time...

Selecting a suitable fund from the PieFund range using a dart gives a high % of being on the right side as there are just 4 segments on the PieFunds fund selector dartboard I have drawn below.

Attachment 6448

[D. Fender]

My periodic analysis shows:

If you do a NZ Investment funds review for all funds over $10 using fund finder search on the www.morningstar.co.nz site by 6 month % performance then PieFunds have three funds in the top 9 .

AMP have three funds in the top 9 and Niko, PPS and One Answer have one each.

AMP is 1st, 2nd and 4th.

PieFunds is 3rd, 7th and 9th

Note that PieFunds have a total of just four funds and AMP have 33 funds.

AMP performance over 6 months ranges from their top fund at 17.06% to the low of 1.77%.

PieFunds range is from 14.3% to 4.12% for their four funds.

The 4.12% is for the new global fund with a higher than usual cash component as it invests over time...

Selecting a suitable fund from the PieFund range using a dart gives a high % of being on the right side as there are just 4 segments on the PieFunds fund selector dartboard I have drawn below.

Attachment 6448

I think you need to compare apples with apples - the table you refer to shows all types of funds, from global equity to emerging markets to fixed interest.

The performance data on Morningstar is to the 30th September.

[Toulouse - Luzern]

Hi Homzen,

Thanks for your reply and in particular "Finally, the performance data on Morningstar is to the 30th September, so it doesn't include the impact of Titan on Pie's numbers".

For me this is a revelation.

I have always assumed that Morningstar data would update weekly and therefore be up to date as at 31 October 2014.

I expected the performance % shown would include recent TTN ASX announcements eg 15 September 2014 (Astra Drilling acquisition) no change to EBITA at $21M and 2 October 2014 RCH contracts impact EBIT now $10 to $12M.

Thanks