- This topic has 21 replies, 13 voices, and was last updated 6 months ago by
.
-
Posts
-
Up2
Hi everyone!
You might have noticed this update. I plan to sell my shares of Xero and Pro Medicus in the week commencing October 30th, 2023:
Any questions or comments can be sent to me below.
Owen
P.S. there is much more news and research coming to you soon! I’m excited.
Up1Hello. Big stuff, nice. Could you provide some I formation on any ethical and sustainability positioning of the portfolios. Would personally want to make sure that I’m not earning profit from tobacco/weapons/fossil fuels/ gambling etc. I’d rather know I was pitting my money behind good companies making the world a better place. Thanks
Up3Do you expect to offer inspeices transfers for assets which are included in the model portfolios on launch or soon after? This would prevent us from needing to sell and incur CGT if moving from a different provider.
also, what is the structure of this? Is it a managed fund, or a robo-advice platform?
Finally, to clarify, if we’re a member of Core but not invest, do we still gain access to the portfolios, any updates, as well as any new satellite research?
Congratulations, it’s great to see that you’ve got this off the ground. A new era for Rask!!
Up1Congrats on finally getting this off the ground. Will there be individual companies purchased outside the ETFS? If so, what will the proportion of funds invested into individual companies be and will they be different from portfolio to portfolio?
In regards to fees, will the 0.75% be in addition to the underlying ETF and managed funds fees? Based on the size of Rask Invest, are you able to negotiate these fees with providers?
Is there any clarity on who the best of breed funds are? Maven, Magellan, Fidelity?
As a side note its good to see you guys polished up in a suit.
Up0Nice one Owen – good to see this is nearly ready to go.
Do you see the ‘Rask Invest’ as something community members would refer family members to, and Rask Core as something we’d self-service?
What will happen to the OG memberships which have grandfathered access to Rask Core?
Up0Congratulations to all in the Rask team – I have enjoyed my learning journey with Rask – I feel joining one of the portfolio’s is a way to say thank you – be part of the Rask team and continue my learning journey – I am sure there will be many others that will ‘be in’ too – Magic Work!!
Up0what type of entity will you accept for this – is it only individuals or company/trust name?
Up0There are many wonderful questions here. Thank you for the kind words and thoughtful responses.
I will answer all of these tomorrow morning.
Thank you 🙏
Owen
P.S. The suits are here to stay. But you can still win Rask merchandise for attending an event in 2024! Melbourne, Perth, Noosa, watch out…
Up1Fantastic news Owen. Will Core members have an opportunity to upgrade to Invest at a lower cost to new members in the future to reward loyalty? 😊
Up2Hi Owen, congratulations on achieving this milestone awesome times ahead!
I’m a long-time listener to all the podcasts and attend the live sessions every Wednesday night! I’ve been waiting for this Rask Invest to begin my investing journey!
I just have a couple of questions:
1. For members who join Rask Invest, will advice presented remain general in nature or has your accreditation change to provide any personal financial advice? just curious as to how this will all work moving forward.
2. Is there a minimum amount for investing? Being in my mid-twenties a spare $10,000 is a little hard to come by
3. Will the new investment Rask platform work similarly to how the new Betashares Direct Brokerage Platform will work?
Thank You for reading this essay and thank you and Kate and the Rask Group for positively impacting the community and myself! 🙂
Up1Excited to see how this unfolds. I’ve been following the current Jupiter growth core portfolio for some time. Will I need to sell some positions in order to follow the new direction?
Up0Congrats on taking things to the next stage.👏🥂
Not sure if the new RASK managed portfolios will be for me, but I am looking forward to the additonal stock analysis for satellite.
I wonder if your sale of PME and XRO move the market? It’s all a bit bearish at the moment and I’m looking for an opportunity to build a position at better valuations 😉
Up2Hey everyone, there have been some great questions in here. So thank you very much. I hope I can cover off on them all now, otherwise, keep ’em coming.
Product Disclosure Statement (PDS) – Available here
Target Market Determination (TMD) – Available here
Investment Menu (IM) – Available here
Obviously, I encourage everyone to read the Rask Invest PDS. And please speak to your financial adviser before deciding to act, as they can take into account your needs, goals or objectives. I can only provide general advice advice here.
📞 Booking a call with me – any Rask member will be able to book at 15-30 minute call with me during November. More details to come.
Structures – can I invest via a company, SMSF or trust?
Yes. You can invest through a company, trust or SMSF. It just means the correct ID documents will need to be supplied. We’ve built core, diversified, transparent and balanced portfolios, which, in my opinion, are great for investors using these types of vehicles (generally speaking, of course!). Please refer to pay 19 of the PDS.
Designed for family & friends – but also for people who doubt themselves
@DerekB, “Do you see the ‘Rask Invest’ as something community members would refer family members to, and Rask Core as something we’d self-service?”
Absolutely. For everyone of us, here, there are perhaps 50 people in our life who need to invest for their future but are afraid of the idea, who they can trust, and — frankly — should never invest for themselves. By building long-term, professional but understandable and transparent portfolios — and combining them with free education and quarterly events — it’s for everyone who:
- Thinks they know how to invest for 10 or 20 years
- Those who know they’ll suffer from behavioural biases at the worst possible times (e.g. if they invest everything in 3 index funds but get shaken out during a sell-off)
- Who wants a way for their family, friends, colleagues, employees or children to grow wealthy — with our watchful guidance and support.
Can I transfer (in-specie) some ETFs or funds I already own?
Yes. If an investor already own the funds or ETFs we’re planning on holding, it’s possible to in-specie transfer in (and potentially avoid CGT – confirm with your accountant). Give our support line a call once we’re up and running, it’s easily done.
For the first few months we’ll also only be targeting ASX-listed ETFs and funds, so that if an investor is unhappy (for whatever reason) an investor could also transfer out (e.g. back to a broker). Just know there’s a small fee for transferring out, as laid out on Page 14 of the PDS.
Note: the Rask Invest strategies are very similar — but not identical — to the Rask Core strategies we currently have on display.
Rask Core – grandfathered?
At Rask, we always reward loyalty — unlike just about every other finance brand (regrettably). Everyone who has a Rask Core membership can get access to the same types of research and content as Rask Invest clients.
Everyone who joins Rask Core from now on pays a joining fee ($100) and the new fee is $49 per month. This protects our analysts’ intellectual property and research. I plan for our research to be the best in Australia, which takes time and costs to conduct.
In other words, Rask Core members get a big free kick for nothing, and it’s here to stay!
Fees – think Costco, not Aldi
The fees to manage the portfolios are 0.75% per year — this includes the fees to pay the analysts, manage the portfolios, tax statements, reporting, technology, quarterly events, satellite research, webinars, the education on Rask, etc.
In short, I want to keep it low cost but we’re not trying to be the Aldi of investing (which as I’ve spoken about before is quite dangerous, for many reasons). I’d like to think we’re more like Costco – high quality, high value, good prices (worth nothing, I also shop at Aldi!).
The 0.75% does not include the fees for the ETFs or funds we pick — as you know these are automatically deducted from the fees of the ETF and show up with a tiny adjustment to an ETF’s share price every day. We are aiming to build our underlying portfolios for less than the price of Vanguard’s diversified funds — but also include minor amounts of active funds, different types of funds (in time) which an investor might not get on the ASX (e.g. income funds), etc.
There are some other minor costs for investors, like trading/transaction fees (capped at $9.50). In a PDS a provider has to estimate these frictional costs based on a ‘normal year’ but please note — we will not be turning over the portfolios very often. We want to use ETFs because the buy-sell spread is also quite low.
I’m aiming for an average holding period of 5+ years for our positions (meaning turnover under 20%). In fact, I’d say the Rask Invest portfolios will achieve something closer to 10-15% turnover (i.e. a holding period of 7+ years). The reason we will have some turnover is due to rebalancing.
Can we negotiate fees with providers? At the moment, we’re just using ETFs and select active funds to build the portfolios. The estimated cost of the ETFs inside the portfolios (available in the IM) is around 0.2%. Tiny! If/when we expand to more unlisted managed funds, we will be able to access many more opportunities. But I’m being conservative and starting slow.
💡 Rask Invest is a premium investment service. However… I designed the service, with the minimum investment, plus all of the benefits from being a Rask Invest client, so that a low balance or price conscious investor can access everything for a very low fee. The management fees (0.75%) on $20,000 are just $150 per year! Even with the ‘other costs’, I hope it is still around $200 or less. At the upper-end of the balances (e.g. $3m holdings) — there’s a 50% fee discount on the entire balance. Pretty neat! Page 13 of the PDS.
All this means, if an investor just wants to ‘try us out’, it should be cheaper to become a Rask Invest client and get all of the perks, than it is to be a Rask Core member — especially if they attend an event. (And, yes, $20,000 would not be break-even for Rask… especially if you come to an event and enjoy the lunches and giveaways!)
Do I get advice? Is this the same as a brokerage account? What’s the minimum?
Alexiar8 asked some good questions.
We’ll be sticking with a general advice framework but doing a lot more educational work for our investors, through webinars, Q&As, events (with advisers), etc. We’re trying to build a community of 100,000+ who are informed, empowered, and so on. I hope to be able to leverage Rask Invest to build some financial planning partnerships that enable our community to get advice for discounted prices. But we will not be doing this ourselves.
The recommended minimum is $20,000, then an investor can dollar-cost average. We’re working on a partnership with Pearler, whereby our portfolios will be available — for the lowest minimum balances — inside Pearler. However, please take a look at the PDS, book a call with me (or send an email) once we’re live.
“Will the new investment Rask platform work similarly to how the new Betashares Direct Brokerage Platform will work?”
Similar! We won’t be opening the portfolio up to ‘any ETF’ as we’re offering this as a ‘do-it-for-me’ solution, not a gigantic menu of all ETFs (that would defeat the purpose a little bit). We auto rebalance, want to minimise costs and taxes, send tax reports, etc.
Ethical investing
Our 3 initial portfolios will similar to what we have here in Rask Core, with additions. My plan and hope is that once we scale these first three portfolios we will then be in a position to offer more strategies, which will likely include a dedicated sustainable growth strategy. However, at this time the fees for the sustainable ETFs are too high to be considered reasonable (maybe except for DZZF).
Via this new platform, we’re capable of offering many things — and I hope we’ll have 5-10 different strategies for folks to choose from in 3-5 years.
Upgrading. Will Core members have an opportunity to upgrade to Invest at a lower cost to new members in the future to reward loyalty?
All current Rask Core members already receive an ‘upgrade’ based on research effort and quality, for no extra cost.
However, it is my intention that the already reasonable fees for Rask Invest will go down in time as we cover our costs. For that I need to see about $150-250 million in funds under management, which could take a while depending on how many of us actually invest.
That said, these are core portfolios, designed for the core of investors’ wealth creation. It’s not a small cap fund taking excessive risk, or a global equities manager trying to shoot the lights out. We’re balanced, low fee, long-term focused — which I think is ideal for the majority of people’s wealth outside of property (e.g. holding companies, SMSFs, individual accounts, etc.). So, hopefully that means we can scale quickly and look to reduce costs or add more benefits!
Keep the questions coming. Don’t forget to register your interest.
Owen
General advice warning: this comment contains general financial advice only. It is not intended to be personalised advice. Please refer to the Rask Invest PDS and speak to your financial adviser before acting on this information.
Up1Thanks Owen,
You mentioned that the current core model portfolios will differ slightly from Rask invest portfolios. Once the Rask Invest lauches, will Rask Core model portfolios mirror the portfolios in rask invest?
- You must be logged in to reply to this topic.
