3rd October 2007
Following are some questions, although not exhaustive, that you may find useful to consider when you are dealing with financial sales people.
What is the reputation of the salesperson and the fund manager?
How much do you really know about the investment's salesperson? Find out what commission the salesperson is getting. They
may be getting high commissions for selling you a particular scheme. For example a commission of $5,000 for a $100,000
investment is 5% - this is high for most managed investments.
If you feel pressured not to ask questions because you might upset them, you are probably being subject to pressure
sales tactics. Don't fall into this trap.
Is the salesperson licenced or authorised to represent someone who does
have a licence? Ask for written proof. If they don't have any, don't deal with them. They may be honest and competent
but you have very few options open to you if something goes wrong.
Who is going to manage your investment and what do you know about them? Do they have years of experience and professional qualifications behind them, and have you seen proof of their claims? Again ask for evidence of their licence. If you've already got some money invested, check that you're not taking unnecessary risks. If something goes really wrong, you don't want to end up with nothing and have to start all over again.
What will your expenses be?
What are all the fees and charges you will have to pay for this investment? The entry, exit and management
fees will be set out in the investment's Product Disclosure Statement. The sales person may charge extra for advice. Get these fees in writing.
Can you get your money back if you need it?
You may need your money unexpectedly, so you need to know if you can get it back. Are there any fees, charges or
penalties for getting out early? Can you get your money out easily?
What contact will you have with the Fund Manager with whom you have invested your money?
You may want to contact the people managing your investment to discuss how things are going or to ask questions. You will need to find out how you can do this. Are you happy with those arrangements?
What information will you get about your investment?
You should be kept informed about all important developments affecting your investment. You have a right to know whether the investment is performing as expected, whether anything has happened to change its security or value. You need to know how you’ll be getting these sort of reports and how often.
La Trobe's position
La Trobe Financial has a number of Authorised Representatives for the Fund across Australia. They are authorised under La Trobe’s Australian Financial Services Licence number 222213. The usual commission payable by us to our Authorised Representatives or Financial Planners is 0.5%p.a. All fees and charges for the Fund are outlined in the Product Disclosure Statement, but these do not include any payment for financial advice given to investors by a Financial Planner. Three of the four investment options available in the Fund generally have a minimum investment period of 12 months or more, excluding the Cash & Mortgages Option where funds are available upon 24 hours written notice. Reports on your investment are provided monthly and upon request. La Trobe has been successfully managing mortgages since 1952 and therefore has an experienced customer service team to answer any questions you may have. The Funds Management Team can be contacted on 1800 707 707.
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Head of Funds Management
t +61 3 8610 2811
Chris Andrews is the Head of Funds Management for the La Trobe Group and has responsibility for the La Trobe Australian Mortgage Fund.
Read full profile here.
La Trobe is one of Australia's leading independent specialist mortgage Financiers. Its business includes residential mortgages, commercial mortgages, and investment services operating one of Australia's largest Mortgage Funds under AFSL 222213. It employs over 115 staff and has raised over AUD$10Billion to assist over 100,000 customers since inception in 1952.
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