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Good finance advisors / Investment Advice

  1. #1

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    Good finance advisors / Investment Advice

    Not sure if this is the write forum to post this question here.


    I hear a lot of wrath when someone suggests a financial advisors in Hong Kong. They seem to have lot of bad reputation / name here. Especially the ones which are independent, commission based agents. I understand that. But I am truly looking for a good personal finance advisor where I can plan my long term savings plan and allocate the money on regular monthly basis. I have talked to some of the unit trust but they only work on your investments and they don't advise on how to allocate money monthly.

    do you know of any "good", reputed financial advisors?


  2. #2

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    For something as simple as basic allocation investment, I would do some reading first. Most people won't go far wrong with a simple equity index tracking ETF or unit trust to cover off their long term investment plans.

    progammer, greenmark and cookie09 like this.

  3. #3

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    Keep your money and read "Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage"


    And, not totally irrelevant:
    Hedge Fund Fees Slammed at Milken as Investors Join Buffett (1)

    • Chriss says industry faces a wave of closures, consolidation
    • Loews's James Tisch says there are too many hedge funds

    By Katia Porzecanski
    (Bloomberg) -- Top investors took hedge fund fees to task at the Milken conference Monday, with participants saying managers return too little and face a wave of closures.
    Chris Ailman, chief investment officer for the $187 billion California State Teachers’ Retirement System, told Bloomberg Television that the two-and-twenty fee model is "broken" and “off the table” for large institutional investors. Neil Chriss, founder of Hutchin Hill Capital, said investors will pull out of funds that aren’t giving them returns to justify the fees.
    “Reducing your fees is your best return on capital,” Ailman said from the Milken Institute Global Conference. “So we focus very much on costs in every single asset class and we’re pounding on fees across the board.”
    The comments came after Warren Buffett said that investors would be better off backing U.S. businesses through low-cost funds and ditching expensive money managers. Consultants steer investors to these managers who together have underperformed what you could get “sitting on your rear end” in index funds, he said on Saturday at the Berkshire Hathaway Inc. annual meeting.
    The $2.9 trillion hedge fund industry is having its worst start to a year in terms of performance and client withdrawals since 2009, when global markets were reeling from the most severe financial crisis since the Great Depression. Last week, Dan Loeb’s Third Point said that investors are “in the first innings of a washout in hedge funds and certain strategies.”
    Hedge fund managers such as Crispin Odey, Bill Ackman and John Paulsonposted declines of at least 15 percent in the first three months of 2016 in some of their funds -- returns that would be considered horrific for an entire year -- while Alan Howard and Paul Tudor Jones have been hit with billions of dollars in redemption requests.
    Hedge Fund Crowding

    "We’ve been reducing our hedge fund investments over the past year or year and a half," Loews Corp. Chief Executive Officer James Tisch said on a conference call Monday, discussing the portfolio at the CNA Financial Corp. insurance unit. "I have a slightly different take on it than Buffett. I would say that the space has become very crowded and returns have been competed away."
    Hedge funds, on average, lost 0.6 percent this year through March 31, according to data compiled by Bloomberg. Last year, 979 funds closed, more than any year since 2009, and the industry saw outflows of $16.6 billion in the last two quarters, according to Hedge Fund Research.
    The troubles for these billionaire and multi-millionaire money managers may be more acute now compared with earlier downturns because the whole world isn’t falling apart with them. Savers who stayed invested in a low-cost index fund tracking the U.S. stock market would have made about 3 percent this year, or almost 8 percent annualized.
    “Supposedly sophisticated people, generally richer people, hire consultants. And no consultant in the world is going to tell you, ‘Just buy an S&P index fund and sit for the next 50 years,’" Buffett told shareholders. “You don’t get to be a consultant that way, and you certainly don’t get an annual fee that way.”
    Closure Wave

    Calstrs, the second-largest U.S. pension fund, negotiates lower management and incentive fees with money managers, Ailman said.
    The hedge fund industry will face a wave of closures and consolidation as it struggles to meet the demand of investors for higher returns or more diverse products in exchange for fees, said Chriss of Hutchin Hill.
    “Investors are going to vote with their feet,” Chriss said in a Bloomberg Television interview from the Milken conference with Erik Schatzker. “They will redeem the hedge funds that they don’t feel are giving them something that’s worth the fees they’re paying, and that will either force hedge funds out or force them to lower their fees.”
    Ackman, who runs Pershing Square Capital Management LP, says that while the industry’s compensation structure attracts a wide variety of participants, the number of players will likely shrink.
    “Capital will flow to the people who can justify the fees they charge,” Ackman said Monday in an interview on CNBC. “I wouldn’t select a brain surgeon based on who offers the lowest rates, right, you want the most talented person with the right incentives.”
    Too Negative

    While some criticism of the hedge fund industry is warranted, Clifford Asness,AQR Capital Management’s chief investment officer, said “people are turning too negative.”
    “They are yelling at them too much,” Asness told Bloomberg Television. “They will under-perform in a bull market like the one we have had for six or seven years.”
    Last edited by jrkob; 09-05-2016 at 08:28 AM.

  4. #4

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    example?

    Quote Originally Posted by TheBrit
    For something as simple as basic allocation investment, I would do some reading first. Most people won't go far wrong with a simple equity index tracking ETF or unit trust to cover off their long term investment plans.

    thanks for your reply and apologies for getting back to late. I would like to keeo this conversation alive.

    I have talked to a few unit trust managers. i have heard good name of SJP but they seem to have very high cost. 5% flat entry and on going of 1 to 2 % per annum. no exit cost here.

    is there any renowned good fund in hk? or any website to explore? government site seems to talk about what funds are.. but what is the best place to explore good funds, compare costs and performances?

  5. #5

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    Sorry, I don't invest in Hong Kong so can't really help. I use a UK based funds supermarket which has zero entry costs for most funds, and very low fees. I have not found anything similar here, although the last time I looked was a few years ago.

    progammer likes this.

  6. #6

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    Quote Originally Posted by TheBrit
    funds supermarket which has zero entry costs for most funds, and very low fees.
    HK has something similar called iFast, very popular among the locals. You have a few ways of working with them: you can have full advisory service which of course you have to pay for, or you can just open an account, you make all the decisions and buy whatever funds you want, pay no load and just a small running fee, from memory like 10bp per annum or so.
    I almost opened an account with them last spring to buy a China fund (thankfully I did not in the end !).

    OP, here's their website in case you haven't contacted them yet. If you really want to do this.


    https://secure.ifastfinancial.com.hk...ome/index.svdo
    progammer likes this.

  7. #7

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    other funds

    thanks. SJP (st. james place.. formerly henley) is UK based fund as well. and they accept only brit pounds. 5% entry cost is crazy.

    i do wish if there are more other better funds or a common place to compare and explore various funds. a govt website would have been useful.

    i am looking for a full blown solution to help me manage monthly salary where some goes in cash saving, some for retirement, some for this and that.. blah blah. basically want to have a proper planning for monthly savings.

    will check out iFast. thanks. unfortunately cannot upvote your answers from mobile web browsers. but a thumbs up to you guys.


  8. #8

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    Quote Originally Posted by progammer
    i do wish if there are more other better funds or a common place to compare and explore various funds. a govt website would have been useful.
    I don't think the government should be involved in this .

    If you want to compare funds, use Morningstar's website. I use the Closed End Funds section of their forum extensively, it is very good, people over there are very knowledgeable.


    Mutual Funds: Ratings, Top Research, Best Picks, Analysis | Morningstar
    progammer likes this.

  9. #9

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    thanks. i heard about it in grahms book. but i thought it was very US centric. will check it out soon.


  10. #10

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    Quote Originally Posted by jrkob
    HK has something similar called iFast, very popular among the locals. You have a few ways of working with them: you can have full advisory service which of course you have to pay for, or you can just open an account, you make all the decisions and buy whatever funds you want, pay no load and just a small running fee, from memory like 10bp per annum or so.
    I almost opened an account with them last spring to buy a China fund (thankfully I did not in the end !).

    OP, here's their website in case you haven't contacted them yet. If you really want to do this.


    https://secure.ifastfinancial.com.hk...ome/index.svdo
    @jrkob, I had a quick browse on this. The site says that iFast is a B2B platform and you can only invest in it as a financial advisor. End customers need a financial advisor first. They have a list of advisors that end-customers can choose from, which include SJP.

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