Bond ETF vs UT

[BBCWatcher]

To be fair also, Blackrock probably has probably more than 10x assets under management.

That's an interesting hypothesis.

First of all, if that problem exists, it shouldn't be the financial consumer's burden to bear. If you're too small to be cost-efficient and to deliver good value to the investor, then the investor should find somebody who is more cost-efficient.

But does this problem exist for this particular unit trust? Do they have a critical mass to support a reasonable management fee, pay their fund managers handsomely, and still earn a nice profit? This particular unit trust is managed by Eastspring Investments. Who is Eastspring? A fully owned subsidiary of Prudential plc, the mega insurance and financial company. This is not the runt of the financial world. I also see Eastspring has US$170 billion in assets under management at last report (not even counting the rest of Prudential plc). That's rather hefty.

So no, I don't think this hypothesis explains a 1.7+% management fee. Which is at least US$2.89 billion in gross fee revenue if that's the average fee they charge their clients. They're not poor, the fund managers that is.

 

[Mecisteus]

SC and ER of unit trusts are coming down over the past few years with the introduction of more and more ETFs. Gone were the days of 5% SC and 2+% ER.

Considering that these funds are still around it shows that there are still ready market and demand for them.

 

[BBCWatcher]

SC and ER of unit trusts are coming down over the past few years with the introduction of more and more ETFs.

They are, and let's hope it continues apace. Long suffering Singaporean financial consumers have suffered long enough.

As fees and expenses come down, there's a "Southwest Effect" (or "Vanguard Effect") that occurs, or is likely to occur at least. More people save more wisely, and that'd be terrific.

 

[Maeda_Toshiie]

Only this UT is doing very well.

Used my CPF OA to buy this UT at 74c (aro 2014). The latest price now is S$1.276.

https://secure.fundsupermart.com/main/fundinfo/viewFund.svdo?sedolnumber=PPGTFS

And what guarantees this UT to continue to outperform in the future?

 

[antonpoh]

And what guarantees this UT to continue to outperform in the future?

You can look at this fund's top 10 holding. Most of their earnings are still quite strong.

1. APPLE INC - 8.7% (income 46.65B )
2. FACEBOOK INC - 7.2% (income 13.58B)
3. MICROSOFT CORP - 5.4% (income 21.2B)
4. ALPHABET INC - 5.0% (income 19.34B)
5. ALIBABA GROUP HOLDING LTD - 4.4% (income 7.68B)
6. SAMSUNG ELECTRONICS CO LTD - 4.1%
7. ALPHABET INC - 4.0%
8. VISA INC - 3.8% (income 6.28B)
9. BROADCOM CORP - 3.2% (income 601 mil)
10. TENCENT HOLDINGS LTD - 3.2%

https://secure.fundsupermart.com/main/admin/buy/factsheet/factsheetPPGTFS.pdf