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| June 2008 | |  |  Welcome to Investor Intelligence for June 2008
The new financial year is a fortnight away so for those of you who have left it to the last minute - don't panic - because 2020 DIRECTINVEST is here to help. If you would like to invest in any of the various investment funds and projects closing on or around 30 June we recommend:
- Contacting our office so we can try and secure your allocation with the fund manager
- Faxing your application to the fund manager, and
- Express posting your applications to the fund manager so you don't miss out.
Please also keep in mind that each fund manager will have different cut-off dates in order to process your transaction/application in time for June 30. Please feel free to contact our office or the relevant fund manager to find out so you don't miss out.
| | | |  |  |  The Australian sharemarket achieved back to back monthly gains in May. From a low point in mid-March, share prices have risen almost 12%. For the month of May the S&P/ASX 300 Accumulation index rose 1.7% but is still down 6.7% over 12 months. Providing support for the market were potential merger activity, firm energy prices and the positive outlook for bulk commodity prices.
Read Colonial First State Market Watch and other Fund Manager Market Reports >>
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For investors looking to access global markets with growth potential but with little upfront capital to invest, the Macquarie reFleXion Trusts provide the benefit of 100% gearing and capital protection at maturity.
Invest via 2020 DIRECTINVEST for 100% rebate of upfront commission.
Find out more on Macquarie reFleXion Trusts >>
Full list of Latest Offers >>
| | |  | | The Myths of Margin Lending
In recent months margin lending has received some negative press due to the collapse of Opes Prime and Lift Capital. What investors should understand about these collapses is that it was a result of a flawed business model and is not typical of margin lending arrangements. If you are dealing with one of the large established bank margin lenders you do not transfer title of your securities to the lender. By borrowing money you simply enter into a loan arrangement (similar to a mortgage over your house) whereby your shares or managed funds are pledged as security for a loan. There is no transfer of title to the lender. As long as you pay your loan interest and maintain your required margin nothing can happen to your shares. To clarify, this month's educational article - "The Myths of Margin Lending" by St George - dispels some of the common misconceptions about margin lending.
| | |  | | On 12 December 2006, the new Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) came into effect. One of the requirements of this Act is for businesses operating in the financial sector such as 2020 DIRECTINVEST and fund management companies to obtain, verify and record information that identifies customers effective 12 December 2007.
In the interest of avoiding delays in processing investment applications during this period, this month's Q & A outlines how investors are able to fulfill these identification requirements.
| | |  | | Direct access wrap accounts
Until recently, investors could only access wrap platforms via a financial planner and as a result incurred the often unnecessary fees such as sales commissions and exorbitant annual adviser service fees. Ongoing adviser service fees of 1% - 2% pa of the account balance undermine the cost effectiveness of wrap accounts.
2020 DIRECTINVEST is able to offer these wrap accounts without an adviser and unnecessary adviser service fees:
- Personal Choice eWRAP - badged version of Asgard eWRAP with over 300 wholesale investment options and ASX listed securities
- Wealthtrac Portfolio Service - over 200 wholesale managed fund options and discounted administration fees for 2020 DIRECTINVEST clients.
View more information on wrap accounts >>
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For a complete list of re-rated funds and to keep up to date with fund ratings from both Standard & Poor's and Morningstar:
Managed Funds more info
Superannuation Funds more info
Allocated Pension Funds more info
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| | | | As we approach 30 June, review your options with the help of MLC strategy guides. more info | |
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